Brazil has recently approved its National Policy on Climate Change and set greenhouse gas (GHG) emissions reduction targets for 2020. Central characteristics of this policy and obstacles to its implementation are described in this article, starting with a short overview of Brazil’s GHG emissions and energy matrix, as well as some pioneering programs that have helped reduce GHG emissions. The adoption of this policy shows a major shift in the country’s attitude toward GHG emissions; however, there are still important challenges in its implementation that need to be overcome.