The gross emissions of Latin America's biggest country fell by 16.7 percent year-on-year, according to Brazil's Climate Observatory, a network of environmental NGOs.
The reduction in emissions were attributed to the success of Lula's government in fighting deforestation.
"The new data shows the impact of the federal government retaking control over deforestation after a deliberate lack of control between 2019 and 2022," the observatory said in a statement.
The remark was a reference to Lula's far-right predecessor Jair Bolsonaro, a climate skeptic, under whose watch illegal deforestation accelerated, particularly in the Amazon.
Lula defeated Bolsonaro in October 2022 elections to win a third term in power.
He has pledged zero deforestation by 2030.
Since Lula's return to the presidency, the rate of forest clearance in the Amazon, the world's biggest tropical forest, has fallen steadily.
Despite the good news on emissions, the observatory warned that Brazil's economy caused concern about the government's commitment to its climate targets.
It drew attention to Lula's contentious support for a vast offshore oil project near the mouth of the Amazon river.
Last month, Petrobras began drilling for oil in the Foz de Amazonas region after winning a five-year environmental battle for permission to explore the area.
Lula insists the oil revenues will help fund Brazil's climate transition.
Critics accuse him of a contradictory stance as he urges world leaders to step up in the fight against climate change ahead of COP30 talks in the Amazon city of Belem from November 10-21.
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