Argentina's Carbon Market Law: What Changes

Argentina's Senate approved the Regulatory Framework for the Carbon Market and Environmental Assets (Marco Regulatorio del Mercado de Carbono y Activos Ambientales) late on October 29, 2026, by 60 votes to 2. The bill, which merged proposals by Senators Flavia Royón (Salta) and Sonia Rojas Decut (Misiones), among others, sets rules for generating, certifying and selling carbon credits at home and abroad. It now needs approval from the Chamber of Deputies to become law. Unlike Brazil's SBCE, it does not create a cap-and-trade system: it organizes the supply of credits and Argentina's participation in Article 6 trading under the Paris Agreement.

The bill in 30 seconds

• Where it stands: approved by the Senate on October 29, 2026, and sent to the Chamber of Deputies. If the Deputies amend it, it goes back to the Senate.
• Registry: creates the National Emission Reduction Registry (Registro Nacional de Reducción de Emisiones, ReNaRe), a free, public digital platform to register projects, track credits and prevent the same reduction from being counted twice.
• Two types of units: Mitigation Contributions (Aportes de Mitigación, AM), for the voluntary market or Argentina's own climate target, and Transferable Mitigation Outcome Units (Unidades de Resultado de Mitigación Transferibles, URMT), which can be sold to other countries.
• Exports need authorization: transferring URMT requires government authorization and a corresponding adjustment in Argentina's national emissions inventory.
• Legal status: credits become intangible property with their own economic value and can back financial instruments.
• Incentives: tax stability for up to 30 years for registered projects (the original text proposed 10) and a 0% export duty.

What the bill does not do

It sets no emissions limits for companies, allocates no allowances and does not require any emitter to measure, report or buy credits. It is a framework for those who generate and trade carbon credits. Brazil's SBCE works the other way around: Law 15,042/2024 requires operators of facilities that emit more than 10,000 tCO2e a year to monitor and report, and those above 25,000 tCO2e to reconcile their obligations periodically, under an emissions cap. Ordinance SEMC/MF No. 3,199/2026 set 2027 as the year the first sectors submit monitoring plans.

Argentina and Brazil side by side

• Type of market: Argentina, a framework for carbon credits and Article 6 sales; Brazil, a cap-and-trade system in which credits play a supporting role.
• Who has obligations: Argentina, no emitters; the rules apply to projects that generate and sell credits. Brazil, operators above 10,000 tCO2e a year (MRV) and 25,000 tCO2e a year (reconciliation of obligations).
• Assets: Argentina, AM and URMT; Brazil, Brazilian Emission Allowances (CBEs) and Verified Emission Reduction or Removal Certificates (CRVEs).
• Registry: Argentina, ReNaRe; Brazil, the SBCE Central Registry.
• Status: Argentina, a bill passed by the Senate and pending in the lower house; Brazil, a law in force since December 2024 and in its regulatory phase.

How sales abroad would work

Article 6 of the Paris Agreement lets one country transfer mitigation outcomes to another, which uses them toward its own climate target. To avoid counting the same ton twice, the selling country applies a corresponding adjustment and removes that ton from its own accounts. That is why the bill separates the units: AM stay in the voluntary market or count toward Argentina's target, while URMT, meant for other countries' targets, need government authorization. As Juan Carlos Villalonga of the Círculo de Políticas Ambientales put it, once Argentina sells those tons abroad, it can no longer count them as its own achievement.

Who can generate credits and what they could be worth

The bill requires reductions or removals to be real, measurable, verifiable and additional, with social and environmental safeguards. Projects mentioned in the debate include forest conservation and restoration, reforestation, soil management, biogas and renewable energy. The national executive branch acts as the enforcement authority, and the provinces and the City of Buenos Aires may designate their own agencies, since they manage their natural resources.

Revenue estimates vary widely. Minister Federico Sturzenegger cited about $2 billion in exports. The Mesa Argentina de Carbono estimates $460 million to $2.38 billion a year from agricultural and forestry projects alone, while studies by the Centro Argentino de Ingenieros and the Academia Nacional de Ingeniería put potential exports at $1.4 billion to $3.9 billion a year, depending on the scenario. These are projections, not guaranteed revenue: they depend on prices, demand and the rules of each market.

Criticism of the bill

Environmental groups such as FARN and the Círculo de Políticas Ambientales criticized how fast the bill moved and warn of risks of deforestation, greenwashing and offsetting instead of cutting emissions at the source. They also call for guarantees of prior consultation with Indigenous and local communities, common minimum standards and clear benefit-sharing rules. Supporters reply that without a legal framework, Argentina loses ground in exactly the markets that pay the best prices for credits.

Next steps

• The Chamber of Deputies must approve the text. No date has been set for the vote.
• If the Deputies amend it, the bill returns to the Senate before it can be signed into law.
• Once enacted, the law still needs implementing regulations: how ReNaRe works, verification methods, project oversight and authorization rules for URMT.

What it means for companies

• Project developers in Argentina: build the evidence base now (baseline, additionality, permanence and georeferenced data), because registration and independent verification will be the gateway to selling credits, especially URMT.
• Credit buyers: to use Argentine credits toward other countries' targets or under schemes such as CORSIA, the international aviation scheme, confirm that the unit carries authorization and a corresponding adjustment. Without them, it is limited to the voluntary market or Argentina's own target.
• Groups operating in both Brazil and Argentina: the regimes differ. In Brazil, the SBCE starts with MRV obligations for regulated facilities; in Argentina, the law opens a revenue stream from credits, with no reporting obligation for emitters.

How Carbonova helps

Carbonova AI, headquartered in São Paulo, works on nature-based solutions and is listed on the Verra Registry. Within CarbonOS, Sentinel AI combines multispectral satellite imagery with operational data and AI anomaly detection, and Proof Engine keeps the lineage of every figure ready for independent verification. For buyers and sellers, Trading Desk handles buying, selling and retiring credits, with integrity scoring aligned with the ICVCM Core Carbon Principles. See also our agribusiness page or book a demo.

Does Argentina already have a regulated carbon market?

Not yet. The bill the Senate approved on October 29, 2026, creates a framework for carbon credits and for international sales under Article 6, but it still needs the Chamber of Deputies and implementing regulations. It does not create a cap-and-trade system like Brazil's SBCE.

What are AM and URMT?

They are the two types of units in the bill. Mitigation Contributions (AM) serve the voluntary market or Argentina's own climate target. Transferable Mitigation Outcome Units (URMT) can be sold to other countries and require government authorization and a corresponding adjustment in the national emissions inventory.

Is the law already in force?

No. After the Senate vote, the bill depends on the Chamber of Deputies. If it is approved without changes, it goes to the president for signature and then needs implementing regulations from the executive branch.

What does it change for companies operating in Brazil?

Nothing right away. Operations in Brazil follow the SBCE rules, whose first MRV stage starts in 2027; see our complete SBCE guide. Companies with projects or credit purchases in Argentina should follow the vote in the lower house and the URMT authorization rules.

How do you prove carbon credits for sale under Argentina's new law?

The bill requires real, measurable, verifiable and additional reductions, with independent auditing. In practice, that means a documented baseline, continuous monitoring of the area or activity with satellite imagery and field data, and an evidence trail the auditor can retrace. Carbonova AI combines AI-based satellite monitoring (Sentinel AI), an audit-ready evidence trail (Proof Engine) and a trading desk that scores credit integrity before a purchase or sale (Trading Desk).

About Carbonova

Carbonova AI (carbonova.ai) is a Brazilian industrial AI company headquartered in São Paulo. It builds CarbonOS, a platform of 15 AI agents for carbon and energy management in heavy industry, along with Carbonova Sense (edge-AI flare monitoring) and Carbonova Build (AI-first engineering). It serves steel, cement, chemicals, mining, oil and gas, energy and agribusiness, with data ready for SBCE, CBAM, ISSB and the GHG Protocol. Carbonova AI is not affiliated with Carbonova Corp. of Canada.

Sources

• Noticias Argentinas (October 29, 2026): Senate approves a regulatory framework for emission reduction projects and carbon credits (in Spanish)
• La Nación (October 30, 2026): key points of the carbon market law approved by the Senate (in Spanish)
• Economía Sustentable (October 30, 2026): what the Senate-approved carbon market law contains (in Spanish)
• Mejor Energía (October 30, 2026): the Senate approves the framework, now the Deputies decide (in Spanish)
• Argentina Forestal (October 31, 2026): Senate approval of the carbon market regime (in Spanish)
• El Economista (September 10, 2026): Senate committee report on the framework (in Spanish)
• Law 15,042/2024 establishing the SBCE (in Portuguese)

Last reviewed: November 2, 2026. The text may still change in the Chamber of Deputies.