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Brazil's Congress approves rules for local carbon credits market

Brazil's lower house of Congress approved a costs on Tuesday that sets guidelines for a carbon market in the nation, with the text now pending only approval from President Luiz Inacio Lula da Silva to end up being a. law.

The bill, which had actually already gotten the thumbs-up from. the Senate, proposes two kinds of carbon credits markets: a. managed one, with a cap of emissions for particular sectors of. the economy, and a so-called volunteer market.

WHY IT is necessary

Companies typically purchase such credits to balance out a portion of. their greenhouse gas emissions, basically spending for jobs. that cut climate pollution.

Brazil hosts part of the Amazon rainforest, whose defense. researchers state is essential to curbing climate change due to the fact that of the. vast amount of co2 its trees absorb.

EXTRA CONTEXT

Brazil's approval comes a week after nations at the United. Nations COP29 environment talks in Azerbaijan agreed to guidelines that. might enable a U.N.-backed international carbon market to be. introduced as quickly as next year.

(source: Reuters)