Environment

New decree intensifies tensions in the carbon credits market

The Bolsonaro government has issued a decree pushing back carbon credit targets for fuel distributors, and causing discontent in the biofuels sector

carbon credits Natural gas plant São João, Bahia. Photo: Joa Souza/Shutterstock
Natural gas plant São João, Bahia. Photo: Joa Souza/Shutterstock

In late July, the Brazilian government issued a decree regulating the postponement of targets for the purchase of carbon credits, called CBios. While the measure was applauded by fuel distributors, for whom it came as a relief given the high prices of these credits recently, it was harshly criticized by representatives from the sugar and ethanol production sector. 

The decree, however, is only the latest development in an escalating tug-of-war between the two sectors.

The text issued by the Jair Bolsonaro administration stipulates that fuel distributors will exceptionally have until September 2023 to prove that they met their 2022 carbon...

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