Brazil's B3, UAE's ACX to launch carbon trade

Brazil's B3 stock exchange and Abu Dhabi-based carbon trading platform ACX will launch a platform for carbon trading in Brazil.

The ASX Brasil platform will allow Brazilian companies to trade offsets on the global market, while giving broader access to Brazil's offsets. Brazil can be one of the leading global suppliers of carbon offsets, according to B3.

The exchange will invest up to R10mn ($2mn) in the project and plans a first quarter 2024 launch.

Trading will initially focus on the voluntary market, but will prepare for the future creation of a regulated market. Brazil's lower house of congress is debating legislation that will create a regulated market and has promised to pass legislation before the year-end recess, which begins on 22 December.

The B3 exchange trades CBIO carbon credits, which are issued by biofuels producers and purchased by fuel distributors to offset emissions from fossil fuels.

Brazil's national industry confederation (CNI) estimates that the country could raise R128bn/year through carbon trading.