Brazil Refines Market Mechanisms to Drive Decarbonization.
Brazil is solidifying its strategy to accelerate the energy transition and combat climate change, refining its market instruments aimed at channeling investments into decarbonization. A cornerstone of this evolution is the “book and claim” concept, an innovative model that allows for the separation and commercialization of a product’s environmental attribute, detaching it from its physical delivery.
This approach gained momentum with the recent regulation of the National Sustainable Aviation Fuel Program (Procla), which established the CS-SAF (Sustainable Aviation Fuel Sustainability Certificate).
The CS-SAF is the first certificate issued in the country under the book and claim framework, opening new avenues for the aviation sector.
The mechanism functions as an advanced chain of custody, where the environmental value generated – be it CO2 emission reduction or renewable energy generation – is formalized in a certificate.
This certificate can then be traded independently of the production or consumption of the physical asset, connecting producers and buyers of environmental attributes without the need to be in the same production chain.
The book and claim model is not new on the global stage, having been extensively tested and validated in the renewable electricity market through I-RECs.
Its applicability extends particularly to hard-to-decarbonize sectors, such as aviation and maritime transport.
In Brazil, the introduction of the CS-SAF marks the third significant advancement in building an environmental asset architecture.
Previously, the country had already implemented the CBIO, a decarbonization credit from the RenovaBio program in 2017, and the CGOB, Biomethane Origin Guarantee Certificate, in early 2026.
A crucial aspect of the CS-SAF is its integrity, ensured by the prohibition of double counting of environmental benefits. The regulation explicitly prohibits the issuance of CBIOs from SAF production, ensuring that each emission reduction generates only one environmental asset. This rigorous methodology reflects the increasing sophistication of climate governance in the country, where environmental certificates are increasingly managed with the same seriousness and discipline applied to other financial assets.
International harmonization is also progressing, with the publication of standard ISO 22095-3:2026, which establishes requirements and guidelines for the book and claim model.
This international standard introduces the concept of “Transferable Instrument with Entitlement to Claim” (TIEC), the smallest transferable unit in book and claim systems, and standardizes aspects such as system boundaries and prevention of double counting.
Looking to the future, the next major strategic step for Brazil is the implementation of a unified digital infrastructure.
The Central Registry of the Brazilian Emissions Trading System (SBCE) has the potential to centralize and provide traceability to various environmental assets, including CBIOs, CGOBs, CS-SAFs, and carbon credits.
With a minimum viable product already in development, this interoperable digital platform promises to multiply the country’s capacity to attract investments for the low-carbon economy and assist companies in meeting their emission reduction targets, including Scope 3 emissions.
