Brazil and China discuss bilateral Article 6 carbon trading framework

Brazil's Ministry of Finance and China's Ministry of Ecology and Environment have begun discussions to establish a sovereign carbon trading framework before COP31. The negotiations focus on transferring Brazilian Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 to Chinese entities. This initiative aims to create a formal cross-border mechanism for climate finance and market interoperability, addressing challenges in integrating cross-border carbon transfers within national mitigation targets. Both nations are establishing rigorous baseline requirements and operational criteria for high-integrity credits, including Brazil's proposed 50 million tonne CO2e cap for international transfers between 2031 and 2035. The framework seeks to provide a scalable model for cross-border carbon accounting and channel international climate finance into Brazilian decarbonisation efforts.

This summary was written by carbon.fyi from the reporting linked above. It is not a quotation; cite the original source.