IETA releases paper on Brazil's carbon market integration pathways

IETA's Brazil Initiative launched a new working paper, 'Carbon Market Frameworks for Brazil 2.0', at the Latin America Climate Summit 2026. Developed with EOS Consulting, the paper quantitatively assesses four pathways for integrating Brazil's Emissions Trading System, voluntary carbon markets, and Article 6 mechanisms. It explores macroeconomic, environmental, and social impacts, including a new hybrid scenario combining industrial decarbonisation and nature-based solutions under an Article 6 framework. The analysis suggests strategic international carbon market engagement could attract investment, support hard-to-abate sectors, and aid Brazil in achieving its NDC cost-effectively. The report also addresses market integrity, corresponding adjustments, ITMO authorisation, and long-term governance.