The Brazil carbon credits market size reached USD 2.7 Billion in 2025. It is projected to reach USD 25.2 Billion by 2034, growing at a CAGR of 28.10% during the forecast period from 2026 to 2034. The market growth is driven by increasing demand for sustainable solutions, Brazil's rich biodiversity, and evolving regulatory frameworks such as the national carbon pricing system enhancing market transparency.

Study Assumption Years

  • Base Year: 2025

  • Historical Years: 2020-2025

  • Forecast Period: 2026-2034

Brazil Carbon Credits Market Key Takeaways

  • The Brazil carbon credits market size was USD 2.7 Billion in 2025.

  • The market is expected to grow at a CAGR of 28.10% during 2026-2034.

  • The market forecast for 2034 is USD 25.2 Billion.

  • The government is developing a national carbon price mechanism to reward emission reductions and increase market credibility.

  • REDD+ programs play a crucial role in forest conservation and sustainable management, helping reduce emissions.

  • Brazil launched a global fund "Tropical Forests Forever" at COP28 with USD 250 Billion for forest protection.

  • Key regulatory advancements include Law 15,042/2024 establishing the SBCE carbon market targeting major emitting firms.

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Market Growth Factors

The development of Brazil's regulated carbon market is driven by the need for more sustainable solutions and Brazil's biodiversity. The country's ecosystem and large tracts of forest land make it a favorable option for carbon offsets and an attractive area for forest protection investment. The market size for carbon credits is projected to grow to USD 25.2 Billion by 2034, with a growth rate of 28.10% CAGR from the base year 2025, stressing climate change mitigation.

The main market driver has been the regulatory development. The Brazilian law is aligned with international climate goals and the Brazilian carbon pricing mechanism provides reduction incentives to the regulated and voluntary sectors. The government intended to increase transparency and credibility in the market, following the EU's experience with an emissions trading scheme. In addition, Brazil's goal of reducing greenhouse gas emissions by 53 percent by 2030 spurred action.

Forests should also be included in Brazil's market. Forest conservation programs such as REDD+ compensate forest owners for protecting and managing forests sustainably. The Amazon is a particularly large carbon sink. The USD 250 Billion mobilization "Tropical Forests Forever" fund compensates tropical forest countries for preventing and restoring deforestation and punishes those with higher deforestation rates. It reinforces the carbon offset market in Brazil and supports some 80 tropical forest countries.

Market Segmentation

Type Insights:

  • Compliance: The segment involves regulated actors adhering to the emerging national carbon price system.

  • Voluntary: Includes entities engaging in carbon credit trading beyond regulatory obligations to meet sustainability goals.

Project Type Insights:

  • Avoidance/Reduction Projects: Projects aimed at minimizing emissions at the source.

  • Removal/Sequestration Projects:

  • Nature-based: Projects focusing on forest conservation and reforestation, including REDD+ initiatives.

  • Technology-based: Use of innovations for carbon sequestration and emissions removal.

End-Use Industry Insights:

  • Power, Energy, Aviation, Transportation: Sectors heavily involved in carbon credit utilization.

  • Buildings, Industrial, Others: Additional sectors engaging in emissions offsetting through the carbon credit market.

Regional Insights

The key regional markets include Southeast, South, Northeast, North, and Central-West. Brazil's regional carbon credit markets are comprehensively analyzed. Though specific market shares or CAGR by region are not provided, the Southeast region is acknowledged as dominant, given Brazil’s economic activity concentration. This regional distribution reflects the diverse industrial and conservation activities driving the national carbon credit market.

Recent Developments & News

  • In May 2025, AgriCapture launched its first rice carbon project in Rio Grande do Sul, partnering with NatCap to introduce methane-reducing irrigation, enabling farmers' access to international markets.

  • In December 2024, Brazil enacted Law 15,042/2024, establishing the SBCE carbon market targeting 5,000 firms emitting over 10,000 tCO2/year, mandating emissions reporting and enabling trading.

  • In September 2024, Google made its first purchase of 50,000 metric tons of nature-based carbon removal credits from Brazilian startup Mombak, focusing on replanting native Amazon species.

  • Also in September 2024, Amazon and five companies committed $180 million through the LEAF Coalition to buy carbon offset credits for Amazon rainforest protection in Para state.

Key Players

  • AgriCapture

  • NatCap

  • Google

  • Mombak

  • Amazon

  • LEAF Coalition

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