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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: Brazil is set to establish South America’s first national carbon market, with mandatory emissions monitoring beginning in 2026 and caps on major polluters to follow by 2029
• This marks a significant shift for the world’s fifth-largest emitter and signals growing momentum for carbon pricing in developing nations
🔭 The context: The initiative is spearheaded by President Luiz Inácio Lula da Silva’s administration, amid broader climate diplomacy efforts including a commitment to halt deforestation in the Amazon
• While carbon markets exist regionally in Chile and Colombia, Brazil’s plan is the first to scale nationally, with implications for agriculture, energy, and industrial sectors
🌍 Why it matters for the planet: Brazil’s carbon market could serve as a blueprint for other emerging economies seeking to implement cost-effective emissions reductions
• As a major emitter from both land-use change and fossil fuels, Brazil’s entry into carbon trading could boost credibility and cooperation under global carbon frameworks, including Article 6 of the Paris Agreement
⏭️ What's next: In 2026, large emitters must begin submitting emissions monitoring plans to a new national regulatory body
• Full implementation of emission caps is expected no later than 2029
• Political continuity poses a risk: Lula faces reelection in 2026, and the market's durability will depend on bipartisan institutional support and clear regulatory design
💬 One quote: “Even though we are a developing country, we can establish these rules to cut emissions,” — Klenize Chagas Favero of Brazil’s Ministry of the Environment and Climate Change
📈 One stat: Brazil ranks 5th globally in annual greenhouse gas emissions, following China, the U.S., India, and Russia
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