Brazil

Brazil’s climate–economic framework combines updated international commitments and federal coordination with sectoral plans. The country’s Second Nationally Determined Contribution (November 2024) commits to reduce net emissions 59–67% by 2035 from 2005 levels and reaffirms climate neutrality by 2050. The federal government is preparing the Plano Clima (National Climate Plan) to guide mitigation and adaptation to 2035, coordinated by the Interministerial Committee on Climate Change (CIM) strengthened in 2024. In December 2024, a federal law created the Brazilian Emissions Trading System (SBCE), providing the legal framework for a regulated carbon market. Sectoral action plans (e.g., Amazon and Cerrado deforestation control) and the Plano de Transformação Ecológica (Ministry of Finance) complement climate policy with investment and industrial-transition axes. A single, consolidated “green economy” plan with legally binding cross-sector delivery targets has not yet been enacted.

Brazil has reopened participatory governance spaces and SDG coordination, but there is no national strategy mandating employee representation or gender balance on corporate boards. The National Commission for the SDGs (CNODS) was (re)established in September 2023 as a consultative body in the Presidency to coordinate a whole-of-society approach to Agenda 2030. Listed companies report corporate-governance practices to the regulator under the Brazilian Corporate Governance Code – Listed Companies (filed to CVM), but inclusive corporate-governance elements (e.g., worker board seats, board gender quotas) are not legally required. The Ministry of Finance’s Ecological Transformation Plan embeds social inclusion as a government priority, yet it does not impose binding SDG-alignment duties on private boards.

Brazil’s 1988 Constitution underpins transparency and participation frameworks. The Access to Information Law (Law No. 12,527/2011) guarantees public information access. Regulatory Impact Analysis (Decree No. 10,411/2020) mandates ex-ante analysis for federal regulatory acts. Digital platforms such as Brasil Participativo and Participa+Brasil host consultations and participatory processes; the government reports 1.4 million participants contributing to the Pluriannual Plan (PPA) 2024–2027. Participation requirements and social-impact assessments vary by policy area, and comprehensive, uniform mandates focused on all marginalized groups are not systematically required across all legislation.

The Brazilian Institute of Geography and Statistics (IBGE) produces environmental-economic accounts aligned with UN SEEA, including Water Accounts (2018–2020), Land Accounts (2000–2020), Energy (biomass) accounts, and experimental ecosystem accounts. These datasets inform environmental indicators used in federal planning and reporting. Brazil does not maintain a single national “comprehensive wealth” or wellbeing framework legally integrated into fiscal rules or budget decision-making, and beyond-GDP metrics are not yet embedded as binding instruments across the policy cycle.

Brazil has mandatory prudential rules integrating social, environmental and climate risks for financial institutions. The Central Bank’s framework (PRSAC and risk-management rules) requires governance, policies, risk identification, metrics and disclosure on climate-related exposures; BCB’s 2023 Report on Social, Environmental and Climate-Related Risks & Opportunities details implementation and supervisory expectations (including scenario analysis/CVA pilots). In parallel, the Government launched a Sovereign Sustainable Bond Framework (Sep 2023) and completed US$2 bn inaugural issuance (Nov 2023) with follow-on issuance and a 2024 Allocation & Impact Report; these are pillars of the Ecological Transformation Plan and sustainable-finance agenda. System-wide, regular E&S stress-testing for all institutions is still being phased in.

"Since 2022, Banco Central do Brasil (BCB) has incorporated social, environmental, and climate risks into its supervisory framework. In December 2023, BCB published its third annual Report on Social, Environmental and Climate-related Risks and Opportunities, featuring climate stress testing pilot methodologies, integration with the risk and control system (SRC), and enhancements in rural credit oversight. BCB conducts climate-related stress tests on major banks, including scenario questionnaires, on-site supervision beginning in 2023, and plans to complete phase two by November 2024. In April 2024, BCB launched a public consultation aligning its climate disclosure rules with ISSB standards.

Brazil is integrating sustainability into trade policy through its presidency of the G20 Trade and Investment Working Group, where it has proposed guiding principles for sustainable trade focusing on transparency, policy coherence with international environmental agreements, and flexibility for developing countries. Domestically, the Green Seal Program, established by presidential decree, certifies products and services that meet defined environmental performance criteria. The Regulated Carbon Market Law (2024) provides the legal basis for the Brazilian Emissions Trading System (SBCE), linking carbon pricing and competitiveness frameworks. These instruments aim to connect trade, investment, and environmental policy within the government’s ecological-transformation agenda.

Brazil established a regulated carbon market by Law nº 15.042, of 11 Dec 2024, creating the Brazilian Greenhouse Gas Emissions Trading System (SBCE). The Presidency and MoF note phased implementation with subsequent regulation (registry, coverage, caps, compliance) to operationalize trading. Brazil’s updated NDC (2023/2024 filings) sets more ambitious targets, but there is no legislated economy-wide carbon-budget law aligned to 1.5 °C.

"Brazil has introduced a series of national programs focused on sectoral sustainability planning. The National Green Growth Program outlines action areas in forest conservation, transport, agriculture, ocean-based economies, and green hydrogen. Sectoral targets are also embedded in the country’s national climate commitments through 2035, with defined emissions targets and supporting plans in agriculture, energy, and land-use change. A broader cross-ministerial agenda was launched in 2023 to promote ecological transition, incorporating low-carbon technologies and nature-based solutions into national planning frameworks.

Brazil has established a comprehensive circular economy strategy at the national level. The National Circular Economy Strategy (ENEC) and the 10-Year Circular Economy Plan, approved in May 2025, provide a coordinated national framework for circularity. This plan details 18 macro-objectives and 71 actions across various sectors, including manufacturing, agriculture, waste management, and education. Its features include the promotion of reverse logistics, sustainable product design, and the creation of green jobs, alongside addressing informality and social inclusion within circular value chains.

This strategy is integrated into Brazil’s larger Ecological Transformation Plan, which connects circular economy goals with industrial modernization, climate resilience, and biodiversity protection. The government is implementing tax incentives and regulatory support for businesses that adopt circular practices and has initiated public awareness campaigns to encourage consumer participation.

The Green Mobility and Innovation Program (MOVER), regulated by a presidential decree in April 2025, constitutes a core component of Brazil's transport decarbonization strategy. The program establishes technical and environmental standards for vehicles, covering energy efficiency, recyclability, and safety. It introduces a national vehicle labeling system and offers incentives for clean technologies, including electric and hybrid vehicles.

MOVER is supported by BRL 130 billion in planned investments and is part of the New Industry Brazil initiative, which is aimed at modernizing the automotive sector and reducing emissions. The program also involves simplified import taxation for green vehicles and supports the development of domestic supply chains for clean transport technologies. Brazil is also investing in the electrification of public transport fleets and the expansion of infrastructure for electric vehicles (EVs) and alternative fuels, such as biofuels and hydrogen.

"Brazil’s national energy planning sets renewable electricity targets above 80% by 2030, with ongoing investments in wind, solar, and biomass. Large-scale wind and solar development continues to expand, and new regulation has been adopted to facilitate offshore wind development. Renewable energy already makes up a high share of electricity generation, including hydropower, but fossil fuel generation, particularly natural gas and coal, is still included in long-term capacity contracts. Support mechanisms exist to promote renewable energy generation and grid access, though integration with broader energy demand sectors remains under development.

"Green jobs are increasingly present in Brazil’s employment planning, especially in renewable energy, waste management, and low-carbon transport. Local-level initiatives have piloted training and job creation programs in sectors such as public space rehabilitation and urban transport. National labor data show growing employment in renewable energy industries, though a comprehensive national green jobs strategy or formal transition planning has not yet been introduced at the federal level. Actions remain focused on sectoral or subnational scales without a central coordination mechanism.

Just transition themes are incorporated into ongoing national planning. The Plano Clima (in preparation, 2025) organizes climate policy to 2035 and is accompanied by biome-specific action plans (PPCDAm 2023–2027 for the Amazon; PPCerrado 2023–2027), which include measures related to sustainable livelihoods and territorial governance. The Plano de Transformação Ecológica integrates industrial-transition, bioeconomy, and financing axes; social inclusion and skills policies are referenced in federal programs and interministerial initiatives. Brazil has not enacted a single national just transition law with binding sector-specific benefit-sharing mechanisms and detailed worker-transition guarantees.

Brazil launched the Programa Selo Verde Brasil by Decreto nº 12.063/2024, creating a national certification strategy for sustainable products/services and enabling technical assistance, normalization and training, coordinated by the Ministry of Development, Industry, Commerce and Services (MDIC), with SEBRAE/ABDI involvement. In 2024–2025, Brazil and UNIDO (with the UK) launched an Industrial Decarbonization Hub to mobilize finance and support sectoral mitigation plans, opening opportunities for SME suppliers. There is no separate legal form for “social enterprise” at federal level, but Selo Verde and related actions constitute targeted green support pathways for smaller firms through certification and capability-building.

"Brazil has implemented a program that links income support to environmental stewardship in rural areas, offering conditional cash transfers for sustainable land use. Broader social protection reforms have focused on digital delivery and targeting efficiency, while climate resilience and green economy links remain limited. Existing programs provide social safety nets to vulnerable groups, but do not include structured pathways for participation in green sectors or access to employment linked to climate action. There is no nationwide basic income or job guarantee scheme connected to green economy goals.

On June 4, 2025, Decree No. 12,485/2025 established Brazil’s updated National Biodiversity Strategy and Action Plan (EPANB), defining strategy and 2050 objectives, an Action Plan 2025–2030, monitoring and financing arrangements, governance, and provisions for coordination with statistical bodies for indicators. Implementation aligns with the Kunming–Montreal Global Biodiversity Framework and interfaces with federal biome plans, including PPCDAm (2023–2027) and PPCerrado (2023–2027), and with marine and coastal management instruments.

The IBGE advances SEEA-aligned environmental-economic accounts: updated land-use/biomes accounts (2000–2020, update released in 2024), water accounts (2013–2020, released 2023) and biomass/energy components. Brazil participated in the UN’s NCAVES initiative. These are significant but not yet an integrated, comprehensive national natural-capital accounting system embedded in fiscal decision-making, and there is no statutory independent advisory body dedicated to natural-capital oversight of budgets and infrastructure. The Ecological Transformation Plan references ecosystem valuation within its policy toolkit.

Brazil's food systems strategy is defined across several national plans, including the ABC+ Plan for Low Carbon Agriculture and the Food on the Plate Plan, both aligned with SDGs 2 (Zero Hunger) and 12 (Sustainable Consumption). The ABC+ Plan, updated in 2021, promotes sustainable farming practices, climate adaptation, and the reduction of agricultural emissions. The Food on the Plate Plan, approved in October 2024, focuses on food sovereignty, healthy diets, and inclusive supply chains. These strategies are supported by implemented public procurement reforms and subsidy adjustments designed to promote regenerative agriculture and reduce the ecological footprint of the food system.

Brazil operates large public nature-finance vehicles and is scaling disbursements. The Amazon Fund (managed by BNDES under MMA coordination) approved BRL 1.189 billion in the first semester of 2025, its best half-year on record. The National Climate Fund (Fundo Clima/FNMC) approved a 2025 Annual Resource Application Plan (PAAR) of BRL 11.2 billion for mitigation and adaptation projects, combining reimbursable financing (via BNDES) and non-reimbursable support under MMA governance. The federal carbon-market law (SBCE, December 2024) establishes a regulated framework expected to mobilize private capital for mitigation. Comprehensive federal subsidy-reform measures explicitly redirecting harmful incentives are under development.

Post-pandemic recovery and medium-term development integrate green investment through the Plano de Transformação Ecológica (Ministry of Finance), Nova Indústria Brasil (Action Plan 2024–2026; 2025 update), and the Novo PAC investment program. These programs include axes for decarbonization technologies, bioeconomy, circular economy, adaptation infrastructure, and clean-energy transmission, with financing channels such as the Fundo Clima and the Amazon Fund. The Federal Court of Accounts (TCU) identifies energy-transition governance within Novo PAC. While green investment is central to current economic planning, measures are structured as long-term industrial and infrastructure policies rather than a discrete, conditional “green stimulus” package attached to macro-stabilization operations.