Market Overview
The Brazil carbon credits market size reached USD 2.7 Billion in 2025 and is projected to grow to USD 25.2 Billion by 2034, reflecting a CAGR of 28.10% during the forecast period of 2026-2034. This growth is primarily driven by the rising demand for sustainable solutions, Brazil’s rich biodiversity, and supportive regulatory developments such as the establishment of a national carbon pricing system. These factors are fostering market transparency and credibility while aligning with global climate commitments.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
Brazil Carbon Credits Market Key Takeaways
- Current Market Size: USD 2.7 Billion in 2025
- CAGR: 28.10% during 2026-2034
- Forecast Period: 2026-2034
- Brazil is implementing a national carbon pricing mechanism to reward emission reductions across sectors.
- REDD+ schemes and forest conservation projects are vital for carbon offset strategies.
- The government’s “Tropical Forests Forever” fund aims to mobilize USD 250 Billion for forest protection across tropical countries.
- Brazil’s carbon market engages both voluntary players and compliance-regulated actors, enhancing market transparency.
- The country’s extensive forest cover and biodiversity position it as a prime source for carbon credits.
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Brazil Carbon Credits Market Growth Factors
The carbon credits market is growing in Brazil. The government is set to create a carbon emissions trading scheme based on the EU scheme before COP30, reducing emissions by 53% by 2030 and providing finance for rainforest preservation. The introduction of a national carbon price will create incentives for emission reductions and more market transparency from both voluntary and compliance-regulated entities and lend credibility to Brazil’s carbon credits market.
Projects to protect forests, especially REDD+ projects, form the center of the Brazilian carbon credits market, which tackles deforestation and forest degradation in protecting and managing carbon-storing forests, mainly the Amazon rainforest. REDD+ gives money to help conservation because forests naturally store a lot of carbon. Because Brazil is highly biodiverse and covered in trees, the nation could draw investments to REDD+ carbon credits and international attention for environmental performance.
Financial mechanisms also help. At COP28 in December 2023 Brazil proposed the “Tropical Forests Forever” funding mechanism, to mobilize USD 250 billion from national sovereign wealth funds and investment funds, and oil and gas companies, to conserve tropical forests across 80 tropical countries. Payment from the fund is made annually, based on the number of hectares of forest kept or restored, while countries that show the risk of deforestation are penalized. Brazil is now better positioned to generate sustainable carbon credits via the global initiative.
Brazil Carbon Credits Market Segmentation
Type Insights:
- Compliance: Encompasses regulated carbon credit transactions mandated by national policies.
- Voluntary: Includes carbon credit trading occurring voluntarily by companies and organizations seeking environmental sustainability.
Project Type Insights:
- Avoidance/Reduction Projects: Projects focusing on preventing emissions through reducing pollution output.
- Removal/Sequestration Projects: These are divided into:
- Nature-based: Projects that use natural processes to capture and store carbon.
- Technology-based: Projects that rely on technological solutions for carbon capture.
End-Use Industry Insights:
- Power: Carbon credits used within the electricity generation sector.
- Energy: Credits applied to energy-producing industries beyond power generation.
- Aviation: Carbon offsets related to the air transport sector.
- Transportation: Credits utilized by various transportation modes excluding aviation.
- Buildings: Use of carbon credits to offset emissions in commercial and residential buildings.
- Industrial: Application of credits in manufacturing and heavy industry.
- Others: Additional industries and sectors using carbon credits not specifically categorized.
Regional Insights
The Brazil carbon credits market is analyzed across five major regions: Southeast, South, Northeast, North, and Central-West. Notably, the report does not provide specific market share or CAGR data by region. However, the inclusion of these regions indicates their importance in the national market landscape.
Recent Developments & News
- In May 2025: AgriCapture launched its first rice carbon project in Rio Grande do Sul, collaborating with NatCap to enable methane-reducing irrigation methods, facilitating access to international carbon markets.
- In December 2024: Brazil enacted Law 15,042/2024 establishing the SBCE carbon market, targeting firms with emissions over 10,000 tCO₂/year. This law mandates emissions reporting and enables carbon credit trading, reinforcing Brazil’s global market position.
- In September 2024: Google purchased 50,000 metric tons of nature-based carbon removal credits from Brazilian startup Mombak, which partners with farmers to reforest the Amazon rainforest.
- Also in September 2024: Amazon and five other companies committed $180 million to purchase carbon offset credits to protect the Amazon rainforest in Para state through the LEAF Coalition.
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