BRAZIL Trends and Developments Contributed by: Thaís Vasconcellos de Sá and Ana Julia Grein Moniz de Aragão, Bermudes Advogados
until reaching 20% in 2030. It also authorised the ANP to regulate synthetic fuels and geological carbon stor- age. It further created programmes for renewable die- sel (PNDV), sustainable aviation fuel (ProBioQAV) and biometane, integrating decarbonisation goals with Brazil’s fuel policy. On 5 September 2025, the federal government pub- lished Decree No 12,614/2025, which regulates the Fuel of the Future Law with respect to the National Program for Decarbonization of Natural Gas Produc- ers and Importers and for the Promotion of Biometh- ane (PNDG). The PNDG aims to reduce greenhouse gas (GHG) emissions in the natural gas sector, fol- lowing a model similar to the RenovaBio scheme. For biomethane, the core mechanism will be the Biometh- ane Origin Guarantee Certificate ( Certificado de Gar - antia de Origem do Biometano – CGOB), to be issued by biomethane producers or importers and acquired by natural gas producers or importers (except small- scale agents). Under the new framework, the National Council for Energy Policy (CNPE) shall set annual emission-reduc- tion targets, between 1% and 10%, by 1 November each year, while the National Agency for Petroleum, Natural Gas and Biofuels (ANP) will individualise those targets by 1 December. For 2026, the mandatory reduction target has been set at 1%. Compliance may occur either through direct biomethane consumption or by acquiring and retiring CGOBs. CGOBs will be issued by certified entities that verify the feedstock origin and the efficiency of produc- tion facilities. The certificates will be valid for up to 18 months and recorded in individualised accounts managed by authorised registrars. Agents subject to the obligation must request the registrar to cancel the certificates once used for compliance, which will then be reported to the ANP. Failure to meet the targets may result in fines of up to BRL50 million and tem- porary suspension (in whole or in part) of operations. The ANP has 180 days to issue the regulations neces- sary for the PNDG’s implementation. The agency has indicated that RenovaBio ‘s regulatory framework will serve as a reference and that the CBIO Platform will be adapted to include CGOB records, with a view to a
future convergence between the two systems. In par- allel, the ANP is reviewing Resolutions No 886/2022 and No 906/2022, to align the existing biomethane standards with the new PNDG. Critical and strategic minerals policy under discussion Regulatory attention has also turned to securing mineral resources essential for the energy transition. Bill No 2,780/2024, currently under fast-track review in the Brazilian Congress, proposes the creation of the National Policy on Critical and Strategic Minerals (PNMCE) and the Committee on Critical and Strategic Minerals (CMCE). The initiative seeks to stimulate the exploration, processing and industrial transformation of critical minerals in a sustainable way. Critical miner- als are defined as essential inputs for energy transi- tion, technological development and national security. The debate has also drawn international attention, giv- en Brazil’s vast reserves of lithium, niobium, copper and rare earth elements and its potential to expand value-added mineral processing. The PNMCE would establish mechanisms to attract investment, prioritise environmental licensing for stra- tegic projects, and promote research and technologi- cal innovation. It would also provide tax incentives, special credit lines and customs benefits for compa- nies in the mineral supply chain, while requiring large operators to invest at least 0.4% of gross revenue in R&D. Environmental agencies, the Ministry of Mining and Energy and the National Mining Agency (ANM) would be required to prioritise accredited projects under the policy. In parallel, BNDES and Finep have launched financing mechanisms to support exploration and processing of strategic minerals. The Strategic Minerals Investment Fund (FIP), co-sponsored by BNDES and Vale, aims to mobilise up to BRL1 billion for junior and mid-sized mining companies. A separate public call selected 56 business plans requesting BRL45.8 billion for mineral transformation projects, reflecting growing private interest and the need to attract long-term capital to the sector.
34 CHAMBERS.COM
Powered by FlippingBook