By means of Decree-Law No. 4/2024, of 5 January 2024, the Government established the rules aimed at governing the voluntary carbon market and promoting the involvement of various agents, public or private, in the development of projects for greenhouse gas emissions’ reduction or carbon capture (supply) and/or through the acquisition of carbon credits generated by such projects (demand).
 
The new statute sets forth, inter alia, the rules applicable to carbon projects, namely (i) applicable methodologies; (ii) types of carbon credits; (iii) monitoring and reporting mechanisms; (iv) registration of projects and of carbon credits; and (v) use and cancellation of carbon credits.

It was also created the so-called "Guarantee Exchange" (Bolsa de Garantia) aimed at safeguarding situations where there is an unintentional reversal of the emissions sequestered during the term of a project.
 
This statute entered into force on 6 January 2024.

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