# Sustainability and the carbon market: the new math of feasibility and cost of capital in real estate

How new environmental rules and green credit are making sustainable projects cheaper and changing the price of construction in Brazil.

- Section: Sustainability
- Published: October 19, 2026
- Address: https://ceoone.com.br/en/article/sustainability-and-the-carbon-market-the-new-math-of-feasibility
- Em português: https://ceoone.com.br/artigo/sustentabilidade-e-mercado-de-carbono-o-novo-calculo-de-viabilidade-e-.md

![Adriana Hansen, Sustainability Director at CTE, smiling in a bright office](https://pub-b80e49b2737940b3ab5d3f20d0578192.r2.dev/artigos/sustentabilidade-e-mercado-de-carbono-o-novo-calculo-de-viabilidade-e--composicao.webp)

Photo: Reproduction

## Key points

- The SBCE, created by Law No. 15,042, sets emission allowances for industries that emit more than 25,000 tons of CO₂ per year, such as steel and cement companies.
- The embodied carbon of materials is expected to account for up to 50% of buildings' emissions by 2050, which weighs on construction costs.
- The Brazilian Sustainable Taxonomy opens cheaper credit for projects that prove environmental practices, as in the Eco Invest program.

The sustainability agenda in real estate and infrastructure has definitively left the realm of institutional intention and become a concrete variable in the financial feasibility and valuation of companies. The transition to a low-carbon economy, driven by new regulatory frameworks and global governance requirements, is redefining the cost of capital and the value of buildings across the entire value chain. In a market that, according to McKinsey projections, should jump from US$ 1 billion in 2021 to US$ 50 billion by 2030 globally, managing the environmental footprint has become a central asset for efficiency and risk.

In Brazil, this movement is gaining strength with the implementation of the Brazilian Emissions Trading System (SBCE), under the guidelines of Law No. 15,042. The cap-and-trade system sets emission allowances for base industries that emit more than 25,000 tons of CO₂ per year. The impact on the real estate market is direct: steel and cement companies, key suppliers to the construction industry, will have to answer strictly for their emissions. Since so-called embodied carbon, the environmental footprint of manufacturing these materials, will account for up to 50% of buildings' total emissions by 2050, the sustainability performance of these industries will directly affect the cost of materials at the end of the chain and the feasibility of developments.

On the other hand, the consolidation of the Brazilian Sustainable Taxonomy emerges as the mechanism that can make the transition possible and unlock cheaper capital for projects that prove rigorous environmental practices. According to Adriana Hansen, Sustainability Director at CTE (Centro de Tecnologia de Edificações, a building technology consultancy that took part directly in drafting the Taxonomy's construction section), the regulation brings the legal certainty the financial sector needs to offer incentivized credit lines.

![Adriana Hansen seated in front of palm trees, in a red, pink and black dress](https://pub-b80e49b2737940b3ab5d3f20d0578192.r2.dev/artigos/sustentabilidade-e-mercado-de-carbono-o-novo-calculo-de-viabilidade-e--vertical.webp)

Adriana Hansen, Sustainability Director at CTE (Centro de Tecnologia de Edificações)

The CTE specialist explains that the Taxonomy works as the mechanism that makes lower interest rates possible through structures such as blended finance, as in the Eco Invest program, in which public funds from BNDES and the federal government are combined with private capital to subsidize operations with low environmental impact. With the savings on the bank spread, developers can reinvest the difference directly in clean technologies, energy efficiency and innovation on the construction site.

This new regulatory scenario falls squarely on the most carbon-intensive links in construction. Since materials can account for roughly half (50%) of all the carbon a building emits over its life cycle by the middle of the century, setting an emissions target for cement and steel makers creates a promising scenario for the sector. Aligning base industries with strict decarbonization policies directly benefits developers and builders, reducing the environmental impact indicators of their final products and strengthening the sustainable appeal of their projects in the market.

## Sources and editorial notes

- Reference reporting: McKinsey, CTE (Centro de Tecnologia de Edificações) and the official guidelines of the Brazilian Emissions Trading System (SBCE) and the Climate Plan.

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