LEGAL AND REGULATORY CHALLENGES IN THE ADOPTION OF BLOCKCHAIN FOR REDD+ CARBON CREDIT TRANSACTIONS IN THE ACRE STATE ENVIRONMENTAL SERVICES INCENTIVE SYSTEM.
Regulation; Carbon Credits; REDD+; Blockchain; Tokenization; SISA; Acre; Climate Change
Historically, forest protection and climate change have taken separate paths on the international stage. However, after decades of discussion, the concept of REDD+ emerged, bridging these subjects and creating economic incentives for forest protection by aiming to internalize the cost of carbon in the economy. The state of Acre, through State Law No. 2,308 of 2010, was at the forefront with the establishment of the State System for Environmental Services Incentives (SISA), becoming the first to transact jurisdictional credits in Brazil. In a subsequent innovative proposition, Acre is looking to implement a blockchain platform for the transaction of carbon assets, leveraging this cutting-edge x 2 technology because of its technical features of immutability, transparency and security, with reduced costs and uncertainties. Yet, in this process, numerous legal challenges arise due to gaps in the regulation of both REDD+ and blockchain. This thesis seeks to identify the legal risks associated with this initiative, analyzing regulatory gaps and shortcomings, aiming to formulate recommendations to mitigate legal constraints in adopting blockchain for SISA and to offer suggestions for evolution in the legal and regulatory framework related to tokenized jurisdictional REDD+ carbon credits.