THE CARBON DECARBONIZATION CREDIT MARKET IN BRAZIL

The growing concern about climate change and the energy transition has driven the development of public decarbonization policies in Brazil. In this context, the RenovaBio Program and Carbon Reduction Credits (CBIOs) have emerged as regulatory mechanisms to encourage the production and use of biofuels. This study aims to analyze the contribution of these instruments to reducing greenhouse gas emissions, assessing their role in meeting national climate goals and the challenges related to regulatory governance and the inclusion of small producers.The research adopts a qualitative and descriptive approach, based on documentary analysis of legislation, institutional reports, and technical documents from regulatory agencies. Data collection was carried out through the systematic gathering of regulations and market records, while the analysis followed a thematic categorization process structured into four dimensions: regulatory governance, market performance, environmental sustainability, and regulatory challenges. The results indicate that the CBIOs market exceeded emission reduction targets between 2020 and 2024, contributing to the mitigation of more than 180 million tons of CO₂ equivalent. However, limitations were identified, such as price volatility and the low participation of small producers. It is concluded that, although RenovaBio represents significant progress in Brazilian environmental policy, regulatory adjustments are necessary to enhance its fairness and effectiveness in the transition to a low-carbon economy.