Brazil’s proposed 2031 ITMO date may move: Article 6 methodologies could be accredited this year

Fastmarkets

Yesterday

The proposed 2031 start date for internationally transferred mitigation outcomes (ITMOs) in Brazil’s draft Article 6 framework may not hold, and in the government’s own reading it already means less ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.etasphere.com/news/2662673070"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2662673070\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2662673070?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-08-25 12:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2662673070","market":"hk","top_or_hot":-1,"title":"Brazil’s proposed 2031 ITMO date may move: Article 6 methodologies could be accredited this year","media":"Fastmarkets","content":"<div>\n<p>The proposed 2031 start date for internationally transferred mitigation outcomes (ITMOs) in Brazil’s draft Article 6 framework may not hold, and in the government’s own reading it already means less ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/brazils-proposed-2031-itmo-date-may-move-article-6-methodologies-could-be-accredited-this-year/\">Source Link</a>\n\n</div>\n","source":"fastmarkets_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Brazil’s proposed 2031 ITMO date may move: Article 6 methodologies could be accredited this year</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBrazil’s proposed 2031 ITMO date may move: Article 6 methodologies could be accredited this year\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-25 12:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fastmarkets.com/insights/brazils-proposed-2031-itmo-date-may-move-article-6-methodologies-could-be-accredited-this-year/><strong>Fastmarkets</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The proposed 2031 start date for internationally transferred mitigation outcomes (ITMOs) in Brazil’s draft Article 6 framework may not hold, and in the government’s own reading it already means less ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/brazils-proposed-2031-itmo-date-may-move-article-6-methodologies-could-be-accredited-this-year/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARR","symbol_name":"ARMOUR住宅房地产公司","start_time":0,"source_url":"https://www.fastmarkets.com/insights/brazils-proposed-2031-itmo-date-may-move-article-6-methodologies-could-be-accredited-this-year/","article_id":"2662673070","we_media_id":null,"thumbnails":[],"rights":{"source":"fastmarkets_highlight","url":"https://www.fastmarkets.com/insights/brazils-proposed-2031-itmo-date-may-move-article-6-methodologies-could-be-accredited-this-year/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2662673070","pubTimestamp":1787630400,"columns":[],"sourceInfo":{"source_id":"fastmarkets_highlight","name":"Fastmarkets"},"weMediaInfo":null,"summary":"Brazil’s draft Article 6 framework proposes an initial 2031-35 window for internationally transferred mitigation outcomes. Senior finance ministry officials now say authorization of credits for 2031-35 could start next year and the first Article 6 methodologies could be accredited within months, while an earlier 2025-2030 window is also under consideration.","collect":0,"end_time":0,"defaultTopTitle":"fastmarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ARR":"ARMOUR住宅房地产公司","MORT":"VanEck Mortgage REIT Income ETF","REM":"房地产按揭贷款ETF-iShares","BK4192":"特殊消费者服务","EWZS":"MSCI巴西小盘股ETF-iShares","BK4110":"抵押房地产投资信托"},"translate_title":"巴西提议的 2031 年 ITMO 日期可能会改变： 第六条方法可能在今年获得认证","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARR":1,"REM":0.6,"MORT":0.6,"EWZS":1.5},"content_text":"The proposed 2031 start date for internationally transferred mitigation outcomes (ITMOs) in Brazil’s draft Article 6 framework may not hold, and in the government’s own reading it already means less than the market has assumed.\nCristina Reis, secretary of the Extraordinary Secretariat for the Carbon Market at Brazil’s Ministry of Finance, made two separate points at São Paulo Climate Week on Friday August 7 that between them reopen a timeline developers had criticised as uncompetitive.\nThe first is interpretive: the 2031-35 period in the draft refers to when credits are verified, not a bar on earlier activity, meaning authorization, validation and contracting could begin as soon as next year. The second is substantive: Brazil could consider a 2025-2030 window for ITMOs instead, moving the dates themselves forward.\nAlongside that, Reis said at least two Article 6 methodologies could be accredited this year, and that she expects Brazilian ITMOs to trade above $70 per tCO2e.\n\nWhy ITMO authorization may not wait until 2031\nThe draft resolution, published for public consultation on July 7, set an initial window for authorised internationally transferred mitigation outcomes (ITMOs) of 2031-2035 – a timeline developers warned would hand a four-year head start to competing host countries entering from 2027.\nReis highlighted that the period in the draft refers to credit verification rather than necessarily preventing earlier activity, she said, reaffirming a possibility the Brazilian government had already signalled earlier in the week.\n“In theory, from next year we can already start authorizing, validating and making ITMO contracts,” Reis said. “I don’t think this was clear in the draft.”\nBrazil could also consider a 2025-2030 window for ITMOs, an option that would bring forward the period under consideration in the draft.\n“This window is important because there are sectors that could meet this demand,” she said.\nThat reading is consistent with what Nathalie Vidual, general coordinator for registry and market infrastructure at the Extraordinary Secretariat for the Carbon Market (SEMC), told a CNI, Fiesp and IETA panel on August 4. Brazil expects to pilot some origination and the conversion of carbon credits into verified emission reduction or removal certificates (CRVEs) in the first half of 2027, she said, with a public consultation on the Brazilian Emissions Compensation Program – the country’s official offsets program – expected in September 2026.\nVidual acknowledged the 2031 date had created anxiety among market participants, but argued the preparatory work cannot wait: a carbon credit needs to be ready, and converted into a CRVE, before 2031. That requires planning, bilateral discussions and future transaction agreements on the table well beforehand, as well as a functioning system.\nResponsibility is split across two ministries, each issuing its own regulatory act. Authority to originate a CRVE within the regulated market sits with the SBCE governing body, currently the Ministry of Finance through SEMC. Authority to authorize the international transaction of a CRVE sits with the Ministry of Environment and Climate Change (MMA), which is the designated national authority. Vidual said the two acts need to happen in an integrated and coordinated way, with alignment running through an interministerial committee and the Financial and Methodologies working groups.\nEven so, implementation will be complex: the designated national authority will need to be structured and will assess projects individually, Reis said.\nFor developers, the practical consequence is that commercial conversations need not wait for the verification window. Projects could begin entering offtake agreements before credits become eligible for international transfer, giving developers an opportunity to secure future international demand earlier while allowing buyers to position themselves in what Brazil hopes will be a higher-value segment of supply.\n\nWhich Article 6 methodologies is Brazil likely to accredit first?\nAt least two methodologies for carbon projects eligible under Article 6 of the Paris Agreement could be accredited this year, Reis said, or failing that within the first 100 days of the next government, whichever administration takes office.\n“If it doesn’t happen this year, [it should happen] within the first 100 days of the next government, whatever government it may be,” Reis said.\nAccreditation is one of the steps needed to establish Brazil’s Article 6 framework, alongside approval of the Brazilian Emissions Compensation Program.\nAccording to market participants close to the matter, the methodologies under consideration could include two of three areas: afforestation, reforestation and revegetation (ARR); reducing emissions from deforestation and forest degradation (REDD); and landfill gas. Landfill is seen as having the strongest potential of the three.\nThe selection logic is commercial as much as technical. Reis said methodologies already accepted by international buyers should be among the strongest candidates for accreditation under the country’s framework.\n“There has to be a criterion for this, in my view,” Reis said. “It is a criterion of methodologies already accepted by the demand.”\nThat filter would narrow Brazil’s eligible pool but give the credits clearing it a clearer route to buyers. Although there may be interesting methodologies in Brazil, Reis noted, they are not yet accepted by this international demand.\nAll methodologies remain under consideration, including Jurisdictional REDD (J-REDD). J-REDD is not currently approved under the United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement Crediting Mechanism (PACM), while methodologies covering landfill gas, nitric acid and renewable energy have already been approved under the UN framework and are strong candidates for Brazil’s system, Reis said. ARR is also a strong candidate.\nThe government will additionally weigh attributes such as additionality, potentially favouring projects with stronger environmental integrity and established international demand. Under the draft rules, additionality would need to be in line with UNFCCC requirements, with projects dating from 2013 and credits generated from 2021.\nThose methodology choices could therefore influence both the composition of Brazil’s future ITMO supply and the relative value of different project types.\n\nIs the 50 MtCO2e ITMO cap still the ceiling?\nThe draft would authorize up to 50 million tonnes of CO2 equivalent (MtCO2e) in ITMO transfers. Reis was blunt that the figure is insufficient, while describing the proposal as an initial step while Brazil establishes the institutional structure required to implement Article 6.\n“50 million is little. We can want more? We have to want more. It can be much more,” Reis said.\nSpeaking to journalists, she framed the number as an initial parameter rather than a fixed ceiling.\n“If we get there quickly, everything works, it is helping the Nationally Determined Contributions (NDC), it is economically viable and has integrity, this can be revised,” Reis said.\nThe proposed limit could include units eligible for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), although the treatment of CORSIA remains under discussion.\nThe government wants to avoid both insufficient supply and excessive volatility in the amount of credits entering the international market, Reis said. The volume could therefore evolve as officials gain a better understanding of international demand, project supply and the market’s ability to maintain environmental integrity.\n\nWhat price could Brazilian ITMOs command?\nReis said she expects Brazilian ITMOs to trade above $70 per tCO2e, while stressing that the eventual value will depend heavily on the integrity and methodology of the underlying credits.\n“It depends very much on integrity,” she said. “It depends on the methodology.”\nThat sits well above current benchmarks. ITMOs eligible for CORSIA Phase 1 have recently been trading between $12-13 per tCO2e for generic credits and reached as low as $9.50 per tCO2e in June, though project-specific interest has been reported above these levels. Switzerland’s Klik Foundation has set a cost of ITMO purchases at 29 francs per tCO2e ($35.76) from 2022-2030. Singapore’s carbon tax, which allows select ITMOs to cover up to 5% of an obligation, currently sits at S$45 ($35.15) per tCO2e, with a view to rising to S$50-80 ($39.05-62.48) per tCO2e by 2030.\nThe price indication is a longer-term expectation, given the regulatory and operational steps still required before ITMOs can be transferred internationally.\n\n\n\n\n\n\n\n\n\n\n            ITMO PRICE BENCHMARKS\n\nBrazil’s stated expectation against current market reference points\n\n\n\nReference point\nPrice per tCO2e\n\n\nBrazil’s stated expectation\n\n\n\n\nBrazilian ITMOs, longer-term expectation\nReis, Ministry of Finance; dependent on integrity and methodology\n\nAbove $70\n\n\n\nCurrent reference points\n\n\n\n\nCORSIA Phase 1 eligible ITMOs, generic\nProject-specific interest reported above these levels\n\n$12-13\n\n\n\n\n\nCORSIA Phase 1 eligible ITMOs, June low\n\n\n$9.50\n\n\n\n\n\nKlik Foundation purchase cost, 2022-2030\n29 Swiss francs\n\n$35.76\n\n\n\n\n\nSingapore carbon tax, current\nSelect ITMOs may cover up to 5% of an obligation; S$45\n\n$35.15\n\n\n\n\n\nSingapore carbon tax, 2030 outlook\nRising to S$50-80\n\n$39.05-62.48\n\n\n\n\nSource: Fastmarkets reporting\n\n\n\n\n\nThe government’s emphasis on international acceptance and additionality could also contribute to price differentiation between eligible credits, and the selective approach is directly linked to the potential value of authorized credits.\n“We have to start with those projects that bring more additionality, precisely because that is why their price is higher,” Reis said.\nThat could create a hierarchy within Brazil’s future ITMO supply, with projects meeting stronger additionality and international acceptance criteria potentially commanding a premium.\nBrazil’s ITMOs are expected to enter the international market as price takers, with supply and demand determining the initial market price, Reis said. If Brazil becomes a sufficiently large supplier, however, it could eventually become a price maker.\n\nHow ITMO exports square with Brazil’s NDC\nUnder current proposals, projects would only be allowed to export up to 50% of their issuance in the form of ITMOs, with the remaining volumes kept internally to contribute against Brazil’s domestic climate targets. The approach has been used in other markets, including Japan’s Joint Crediting Mechanism (JCM), Reis said.\nThe retained reductions would not be cancelled or otherwise compensated. They could instead contribute to Brazil’s NDC, be traded in the voluntary market, or be used for compensation within the domestic system.\nThe structure means ITMO transfers cannot cause Brazil to miss its NDC.\n“By the current rule, there is no way Brazil will not meet the NDC because of ITMOs,” Reis said. “It may be because of other things, but not because of ITMO.”\nThe mechanism would instead allow international transfers to support the development of projects at scale while also contributing to the NDC. “ITMO comes only to contribute, generating more projects with scalability,” she said.\n\nITMOs as a financing mechanism\nReis also described ITMOs as a potential financing mechanism that could help reduce the cost of capital for projects, linking them to Brazil’s broader financing strategy under the Ecological Transformation Plan, including the Climate Fund.\nThe Climate Fund’s current resource allocation program includes a line for activities within the scope of the Brazilian Emissions Trading System (SBCE), Reis said. The SBCE law directs 75% of its revenues to the Climate Fund, while the carbon market is also intended to improve the competitiveness of Brazilian industry in domestic and international markets.\n“The idea of the carbon market is an incentive for us to have competitiveness, for our industry to have competitiveness also in domestic and international markets, and therefore it needs financing mechanisms,” Reis said.\nShe also pointed to Brazil’s fifth auction, which includes carbon credits and methodologies for generating carbon credits, as a possible connection with Article 6. Some of those methodologies could potentially be suitable for Article 6 activities.\n“This is not spelled out, this connection between the points, but we are concerned about this coordination,” Reis said.\n\nFinancial market access and new products\nBrazil also sees the legal and financial structure of its carbon market as important to developing international liquidity. Reis said the government’s decision to treat carbon credits as securities was strategic and could facilitate international financial transactions involving Brazilian carbon assets, including through markets in Singapore and Switzerland.\nThat financial infrastructure could provide another route for international trading as Brazil establishes its regulated carbon market and ITMO framework.\nReis further highlighted the potential for financial products linked to carbon and other environmental assets. A mapping or guide to environmental assets could be used as a first step to identify available assets, their regulators and potential suppliers, helping financial institutions develop new products. The objective is to generate demand and scalability for projects.\n\nRegistration remains unresolved\nBefore credits can reach international buyers, Brazil still needs to establish the infrastructure through which eligible units will be registered and authorized.\nUnder Brazil’s carbon market law, credits intended for international transfer must be registered in the central system of the SBCE and become verified reduction or removal certificates (CRVEs). Market participants have questioned whether this requirement could alter the accounting nature or custody of credits as they move into the Brazilian system.\nReis said the government’s intention is not to cancel the original credits and create a different asset, although the precise registration mechanism has not yet been finalized. “The intention is that this does not happen,” she said.\nThe issue is particularly relevant for international markets such as CORSIA, where the treatment and eligibility of the underlying units can determine whether buyers can use them.\nInter-registry transfers and cancellations have caused issues for other countries attempting to target CORSIA.\nZimbabwe currently requires corresponding adjustments to be made on its own national registry, with credits transferred from other international registries such as Gold Standard, where the original credits are then cancelled. However, ICAO recently confirmed it does not view this process of inter-registry transfers and cancellations as meeting its standards so credits authorised in this way are so far unable to receive a CORSIA eligible tab. Zimbabwe’s national registry has subsequently applied to become ICAO and CORSIA approved.\nWork on the answer is already under way. Vidual said the Brazilian Emissions Compensation Program will establish the competencies, processes and requirements for converting carbon credits into CRVEs that comply with a methodology accredited by the governing body. In parallel, the government’s Financial Working Group is beginning meetings to discuss the financial and documentary properties of the CRVE, in order to specify its functional requirements from a systems perspective – the workstream most likely to determine how the accounting question lands.\n\nBrazil eyes an MoU with China\nGreater clarity around Brazil’s framework could support investment and international cooperation, Reis argued. “I think it also signals very positively to sign with more countries,” she said.\nBrazil could seek a memorandum of understanding with China related to the areas discussed. “I think Brazil can be the first to sign an MoU with China,” she said.\n\n\n\n\n\n\n\n\n\n\n            BRAZIL ARTICLE 6 WHAT TO WATCH\n\nMilestones and open questions on the road to ITMO transfers\n\n\n\nDated milestones\n\n\n\nSeptember 2026\n\nConsultation on the Emissions Compensation Program\nIntended to set the processes and requirements for converting carbon credits into CRVEs\n\n\n\n\n\nH1 2027\n\nPilot of origination and credit-to-CRVE conversion\nFirst practical test of the infrastructure ahead of 2031\n\n\n\n\nProposed or under discussion\n\n\n\n2026, or first 100 days of next government\n\nFirst two Article 6 methodologies accredited\nLandfill gas the front-runner; ARR and REDD the other candidates\n\n\n\n\n\nFrom 2027\n\nAuthorization, validation and contracting could begin\nReis says the draft did not make this clear; a 2025-2030 window is also under consideration\n\n\n\n\n\n2031-2035\n\nDraft window for credit verification\nUp to 50 MtCO2e proposed; the government calls this an initial parameter\n\n\n\n\nUndated, unresolved\n\n\n\nHow the CRVE is defined\nWhether SBCE registration preserves a credit’s original accounting identity, which decides CORSIA usability\n\n\nWhether the 50 MtCO2e cap moves\nAnd Brazil’s progress towards its NDC\n\n\nTwo separate regulatory acts\nFinance/SEMC on conversion, MMA on transfer authorization, and whether they land coordinated\n\n\n\n\nSource: Fastmarkets reporting; Brazil Ministry of Finance\n\n\n\n\n\n\n\n\n\nTrack Article 6 across 190+ countries\n\nTrack authorization activity and country readiness across 190+ markets. See how host countries compare\n\n\nRequest demo","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}