The transition to a low-carbon economy is gaining momentum in Brazil with the establishment of the Low-Carbon Hydrogen Legal Framework under Law No. 14,948/2024. This new regulatory structure introduces several measures to promote the sustainable production and use of hydrogen, aligning Brazil with global clean energy trends and enhancing its international competitiveness. The law also introduces the Special Incentive Regime for the Production of Low-Carbon Hydrogen (Rehidro), targeting companies investing in this emerging technology.
The guidelines in the new framework are crucial for promoting various hydrogen production pathways and their derivatives, encouraging both domestic consumption and exports. Through these incentives, companies can benefit from tax reductions and receive governmental support to develop new technologies and sustainable solutions that facilitate the decarbonization of strategic economic sectors.
Another key advancement in this legislation is the creation of the Brazilian Hydrogen Certification System (SBCH2). It aims to ensure that hydrogen produced in Brazil meets the highest international standards of sustainability and greenhouse gas emission reduction. The National Agency of Petroleum, Natural Gas, and Biofuels (ANP) will oversee and regulate activities related to hydrogen production, ensuring that all stages comply with the required environmental and operational standards.
The opportunities brought by this new regulatory environment are substantial. Companies in the energy and infrastructure sectors that join Rehidro will gain access to a range of tax incentives and support for the development of innovative green hydrogen projects. Additionally, the legal framework facilitates public-private partnerships, positioning Brazil as a strategic player in the global hydrogen market, strengthening supply chains, and attracting new investments.
Further regulations are expected to complement Law No. 14,948/2024, detailing the necessary procedures for the practical implementation of hydrogen projects. The approval of Bill No. 3,027/2024, currently under discussion, is expected to further increase sector benefits, consolidating Brazil’s position as a global leader in the transition to a low-carbon economy.
