The exclusion of the primary agricultural sector from the SBCE reporting regime

regulatory weaknesses and challenges to climate governance

Abstract

The Intergovernmental Panel on Climate Change (IPCC) warns of the need to reduce greenhouse gas
emissions by 45% by 2030, a commitment undertaken by Brazil under the Paris Agreement. In this context, Law No.
15,042/2024 was enacted, establishing the Brazilian Greenhouse Gas Emissions Trading System (SBCE). However,
the law excluded the primary agricultural sector from the mandatory regime, allowing only voluntary participation.
The aim of this study is to examine whether this exclusion may negatively impact Brazilian climate governance by
weakening emission control instruments. The methodology adopted was the hypothetical-deductive method, with data
collected from official reports and specialized literature to identify the normative and environmental consequences
of this exclusion. The results indicate that the agricultural sector is responsible for approximately 25% of national
greenhouse gas emissions, demonstrating that exempting it from the mandatory regime undermines the effectiveness
and legitimacy of the SBCE. It is concluded that, although voluntary participation is provided for, the lack of mandatory
inclusion reduces the system’s scope and transparency, weakens climate governance, and may affect the international
credibility of Brazil’s environmental policies.