Ministry of Finance sets schedule for monitoring emissions in the Regulated Carbon Market (SBCE)

Ordinance SEMC/MF No. 3,199, dated October 28, 2026, published in the Official Gazette on October 29, 2026 (Edition 205-A, Section 1 - Extra A), establishes the implementation stages for the obligations to submit a monitoring plan and carry out the effective measurement, reporting and verification (MRV) process for greenhouse gas (GHG) emissions under the Brazilian Emissions Trading System (SBCE), as provided for in Law No. 15,042/2024. Signed by Cristina Fróes de Borja Reis, Extraordinary Secretary for the Carbon Market, the regulation is based on Article 8, II, of Law No. 15,042/2024, combined with Article 60-A of Annex I to Decree No. 11,907/2024, and entered into force on the date of its publication.

MRV implementation stages

Article 2 organizes each stage of the MRV obligations into a sequence of actions. The SBCE management body will establish, through a specific act, the minimum content, format, deadlines and procedures applicable to the monitoring plan and the verified report.

·        First year (A1): submission of the monitoring plan to the SBCE management body for review and approval.

·        Second year (A2): measurement of GHG emissions and removals throughout the current calendar year, in accordance with the approved monitoring plan.

·        Third year (A3) and subsequent years: measurement of emissions and removals during the current calendar year and submission of the verified emissions and removals report for the preceding calendar year.

·        Content and deadlines: a specific act of the management body will establish the monitoring plan and verified report requirements at least 150 days before the relevant obligations begin.

·        Four-year preparation cycle: according to the Ministry of Finance, each sectoral stage provides for four years of preparation: the first for the monitoring plan, the second and third for emissions monitoring, and the fourth for consolidating data for the National Allocation Plan (PNA).

·        Initial scope: the MRV obligation applies to operators with emissions of at least 10,000 tCO2e per year, reaching fewer than 1% of Brazil’s CNPJs. The publication of the Ordinance does not require immediate report submissions or impose emission limits or costs at this initial stage.

Sectoral schedule

Article 3 divides implementation of the MRV obligations into three stages to gradually expand coverage of the economic sectors.

·        Stage 1 (A1 in 2027): aluminum; iron and steel (integrated plants); cement; oil and natural gas exploration and production; chemical industry (adipic acid, phosphoric acid, nitric acid, ammonia, ethene, dichloroethane, vinyl chloride, carbon black); mining (iron ore and bauxite); pulp and paper; glass.

·        Stage 2 (A1 by 2029): ceramics; iron and steel (semi-integrated plants); chemical industry (other products); food and beverage industry; mining (other mineral substances); oil refining; and the electricity sector (generation, transmission and distribution — CNAE 35.11-5, 35.12-3 and 35.14-0).

·        Stage 3 (A1 by 2031): waterborne, rail and road transportation.

·        National Allocation Plan: after 2030, operators emitting more than 25,000 tCO2e must comply with the PNA. The global emissions cap and allocation of Brazilian Emissions Allowances (CBEs) are expected to begin in 2030, with 100% of allowances allocated free of charge at the outset.

·        Gradual implementation: sectors enter the system between 2027 and 2031, with a learning period for measuring and reporting emissions in a standardized and methodologically rigorous manner.

·        No limits or costs at this stage: the Ordinance establishes the MRV schedule but does not impose immediate emission limits or costs; these matters will be addressed in the PNA.

·        Public consultation: the Ordinance was preceded by a public consultation on the Brasil Participativo portal, held from July 28 to August 28, 2026, which received 938 contributions.

Identification of sectors (CNAE)

Paragraphs 1 to 3 of Article 3 provide that the sectors be identified by the codes of the National Classification of Economic Activities (CNAE) set out in Annexes I, II and III. Examples include oil and natural gas exploration and production (CNAE 06.00-0/01) and the electricity sector (CNAEs 35.11-5, 35.12-3 and 35.14-0).

Regulated activity: the activity carried out at an installation or by a set of mobile sources will be considered even when it corresponds to a secondary CNAE code of the establishment.

Limit reference: referring to CNAE codes does not, by itself, subject all economic activities covered by those codes to the MRV obligations.

Future regulation: the management body will define, through specific regulation, the regulated sources, installations and activities, taking into account the specific MRV procedures applicable to each sector.

Air transport sector

Article 4 provides that MRV obligations for air transport under the SBCE must be met in accordance with ANAC regulations on MRV under the National Sustainable Aviation Fuel Program (ProBioQAV), established by Chapter III of Law No. 14,993/2024. ANAC has already regulated MRV under CORSIA and is finalizing the ProBioQAV rules. The alignment must include information interoperability mechanisms between ANAC and the SBCE management body and does not wave with compliance with Law No. 15,042/2024 or SBCE regulations; aviation remains included in the system.

Waste and sanitation sector

The waste and sanitation sector requires specific regulatory treatment under the SBCE, particularly because criteria must be established to prove emissions neutralization, as provided for in Article 30, paragraph 3, of Law No. 15,042/2024.

Structural challenges related to the closure of open-air dumps and the universalization of sanitation also remain and should be considered in developing the applicable sectoral regulations.

Next steps

In 2026, the government intends to structure the Regulatory Affairs Chamber (Careg) with the Stage 1 sectors, which begins in 2027. Careg is expected to provide opinions and contribute to ensuring that rules and methodologies for measurement are appropriate for the sectors and provide predictability to economic actors.

SEMC is structuring the Brazilian Measurement, Reporting and Verification Program (PB-MRV) through a decree and thematic normative ordinances on guidelines, methodologies and accreditation of Validation and Verification Bodies (OVVs). A public consultation on the PB-MRV decree is expected in November 2026, before its publication later this year.

A public consultation is also expected in November 2026 on the decree establishing the Brazilian Emissions Compensation Program (PBCE), which will set guidelines for accrediting methodologies for originating Verified Emission Removal or Reduction Certificates (CRVEs). The expectation is that the first methodologies will be accredited in 2027, with training classes at the beginning of the year.

Final considerations

For clients in oil and natural gas exploration and production, mining, electricity generation, transmission and distribution, oil refining, transportation and other activities covered by the schedule, the Ordinance begins a phase of preparation and data organization without imposing emission limits or costs at this time. Uncertainties remain regarding the definition of regulated sources, installations and activities, the PB-MRV decree and OVV accreditation. Companies should monitor the regulations, internally map emissions against the 10,000 tCO2e per year threshold, and participate strategically in public consultations.