Brazil Explores China as Carbon Credit Buyer, Aims for Bilateral Accord by COP31
Brazil is actively pursuing China as a potential buyer for its carbon credits, with high-level discussions scheduled to take place in Wuhan from September 14 to 18. Brazilian carbon market secretary Cristina Reis indicated that the goal is to finalize a bilateral carbon market agreement by the COP31 global climate summit in November 2026. This initiative is part of a broader effort involving a Brazil-China-EU coalition of carbon market jurisdictions, which collectively cover approximately 42% of global emissions. This coalition is set to approve a work plan aimed at gradually aligning and integrating their trading systems. The trip to China will also assess whether China could become a buyer of internationally transferred mitigation outcomes (ITMOs), a type of carbon credit that contributes to countries' official emission tallies under the Paris Agreement. Currently, Brazil's carbon credits are primarily traded in voluntary markets, but new legislation approved in 2024 will enable Brazil to implement its o...
