Created in the late 1990s, REDD+ (Reducing Emissions from Deforestation and Forest Degradation) has become one of the main global mechanisms for climate change mitigation.
The mechanism financially rewards countries that preserve their forests and reduce deforestation, thereby preventing the release of greenhouse gases. Over time, its scope expanded to include conservation activities, sustainable forest management, and the enhancement of carbon stocks in developing nations.
The Creation of REDD+: A Global Response to Deforestation
The idea that led to REDD originated from a partnership between Brazilian and American scientists. This collaboration resulted in a proposal called “Compensated Emissions Reduction,” presented by IPAM (Amazon Environmental Research Institute) and partner institutions during COP9 in Milan, in 2003. The concept proposed that developing countries with tropical forests would receive financial incentives for reducing deforestation and, consequently, their greenhouse gas emissions. This innovative proposal laid the foundation for the consolidation of the REDD mechanism in the following years.
The Warsaw Framework, adopted at COP19 in 2013, established essential technical and institutional criteria for implementing REDD+. It defines reference levels for forest emissions, national monitoring systems, and results reporting, always observing social and environmental safeguards. The Framework also enables developing countries to access payments for measurable, verifiable, and real emission reductions.
In addition to strengthening trust between countries from the Global North and South, the Warsaw Framework attracts climate investments and enables REDD+ to operate as one of the main global strategies for climate change mitigation.
REDD+ and the Carbon Credit Market
REDD+ is part of the carbon market, where each ton of CO₂ avoided or removed can become a tradable credit. Companies and governments use these credits to offset their emissions, balancing their environmental impact.
In this system, those who emit less CO₂ than allowed can sell the surplus as credits, while those who exceed the limits must purchase them. This dynamic creates financial incentives to reduce emissions and encourages sustainable projects such as reforestation, clean energy, and carbon capture technologies.
Carbon Market in Brazil
In November 2024, Brazil made progress in regulating the carbon market with the approval of new guidelines by the National Congress. Bill 182/2024 sets emission limits for different economic sectors and defines rules for companies that produce more than 10,000 tons of CO₂ per year.
The initial proposal only included emission limits without specifying sectors, but it was later adjusted to exclude some activities from the agricultural sector. The bill also establishes the SBCE (Brazilian Emissions Trading System), responsible for regulating emissions from companies and economic sectors that exceed 10,000 tons of CO₂ annually.
According to consulting firm McKinsey, Brazil holds 15% of the global potential for carbon capture through natural processes and could supply nearly 49% of the demand in a market expected to reach USD 50 billion by 2030. Based on this, IPAM uses its scientific and technical expertise to ensure that these resources are applied efficiently, contributing to forest protection, valuing the people who live in them, and combating climate change.