Business

A step toward a broader carbon market in Brazil

Brazil has begun trading decarbonization credits on the São Paulo stock exchange in what is a very incipient market

carbon stock market
Image: Khakimullin Aleksandr/Shutterstock

Amid the environmental calamities Brazil has suffered throughout 2020, one green milestone went relatively unnoticed: after three years of planning, decarbonization credits — a cornerstone of Brazilian biofuels policy RenovaBio — made their debut on the São Paulo stock exchange. Now, as trading picks up, these credits, known as CBIOs, may be leading the way toward a broader carbon market in Brazil, according to Fabio Solferini, CEO at agribusiness consultancy StoneX.

This milestone dates all the way back to the Paris Agreement of 2015, in which Brazil pledged to slash its carbon emissions by 37 percent by...

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