Brazil has made significant progress in establishing a legal framework for low-carbon hydrogen with the approval of Bill No. 2308/2023. The newly enacted Law 14948/2024 has created the National Low-Carbon Hydrogen Policy, signaling the country’s commitment to reducing carbon emissions and promoting sustainable energy practices.
One of the key provisions of the Law is the establishment of the Brazilian Hydrogen Certification System (SBCH). This voluntary system allows hydrogen producers to certify the emissions intensity associated with their production chain. By providing transparency and accountability, the SBCH aims to promote the use of low-carbon hydrogen and encourage responsible production practices.
In order to foster competitiveness and industrial development, the Law has also introduced the Special Incentive Regime for Low-Carbon Hydrogen Production (Rehidro). Under Rehidro, legal entities that produce low-carbon hydrogen are eligible for a five-year suspension of PIS/Pasep and Cofins levies. This tax regime is designed to incentivize companies to invest in low-carbon hydrogen technologies and contribute to the growth of the national production chains.
Furthermore, the Law has assigned regulatory competence to the National Agency for Oil, Natural Gas, and Biofuels (ANP) for authorizing, regulating, and inspecting activities in the low-carbon hydrogen value chain. The ANP will work in collaboration with other regulatory agencies, ensuring that the industry adheres to the required standards and guidelines.
While the Law has been welcomed as a significant step towards promoting low-carbon hydrogen in Brazil, there have been some amendments made during the legislative process. Notably, provisions related to the Low-Carbon Hydrogen Development and Investment Program (PHBC) were vetoed by the President. These articles will be re-examined and voted on by Congress in a new bill of law.
Brazil’s commitment to establishing a legal framework for low-carbon hydrogen demonstrates its dedication to sustainable energy practices and addressing climate change. By promoting the use of low-carbon hydrogen and incentivizing its production, Brazil is taking a significant step towards a cleaner and more environmentally friendly future.
FAQ:
1. What is the purpose of the National Low-Carbon Hydrogen Policy in Brazil?
The National Low-Carbon Hydrogen Policy aims to reduce carbon emissions and promote sustainable energy practices in Brazil.
2. What is the Brazilian Hydrogen Certification System (SBCH)?
The Brazilian Hydrogen Certification System is a voluntary system that allows hydrogen producers to certify the emissions intensity associated with their production chain. It promotes transparency and accountability in the use of low-carbon hydrogen.
3. What is the Special Incentive Regime for Low-Carbon Hydrogen Production (Rehidro)?
The Special Incentive Regime for Low-Carbon Hydrogen Production is a tax regime that offers a five-year suspension of PIS/Pasep and Cofins levies to legal entities producing low-carbon hydrogen. It aims to incentivize investment in low-carbon hydrogen technologies and contribute to the growth of national production chains.
4. Which agency is responsible for regulating activities in the low-carbon hydrogen value chain?
The National Agency for Oil, Natural Gas, and Biofuels (ANP) is responsible for authorizing, regulating, and inspecting activities in the low-carbon hydrogen value chain. It collaborates with other regulatory agencies to ensure industry adherence to standards and guidelines.
5. Were there any amendments to the Law during the legislative process?
Yes, during the legislative process, provisions related to the Low-Carbon Hydrogen Development and Investment Program (PHBC) were vetoed by the President. These articles will be re-examined and voted on by Congress in a new bill of law.
6. What does Brazil’s commitment to establishing a legal framework for low-carbon hydrogen signify?
Brazil’s commitment demonstrates its dedication to sustainable energy practices and addressing climate change. By promoting the use of low-carbon hydrogen and incentivizing its production, Brazil is taking a significant step towards a cleaner and more environmentally friendly future.
Definitions:
– Low-carbon hydrogen: Hydrogen produced with minimal or no emissions of greenhouse gases, typically through the use of renewable energy sources or carbon capture and storage technologies.
– Brazilian Hydrogen Certification System (SBCH): A voluntary system that allows hydrogen producers in Brazil to certify the emissions intensity associated with their production chain.
– Special Incentive Regime for Low-Carbon Hydrogen Production (Rehidro): A tax regime in Brazil that offers a five-year suspension of PIS/Pasep and Cofins levies to legal entities producing low-carbon hydrogen.
– National Agency for Oil, Natural Gas, and Biofuels (ANP): The regulatory agency in Brazil responsible for authorizing, regulating, and inspecting activities in the low-carbon hydrogen value chain.
Suggested related links:
– Brasil
– National Agency for Oil, Natural Gas, and Biofuels (ANP)
