- Law 15,042/24 introduced the Brazilian Emissions Trading System (SBCE) and recognized the voluntary carbon market.
- Complementary Law 214/25 regulated aspects of the Consumption Tax Reform, introducing new taxes (IBS and CBS) in 2026.
- The SBCE is a cap-and-trade system for operators emitting over 10,000 tons of CO2 annually.
- The voluntary market involves carbon credit transactions for voluntary CO2 offsetting.
- Carbon credits are not taxed by ISS, ICMS, or IPI.
- Until 2024, taxation was limited to PIS/COFINS and Corporate Taxes (IRPJ/CSLL).
- Controversies exist over presumed profitability percentages and applicable PIS/COFINS rates for carbon credit originators and acquirers.
Source: mayerbrown.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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