Brazil Steps Towards Leading the Global Low-Carbon Hydrogen Market
Key Ideas
  • Bill No. 2,038/2023 creating a legal framework for low-carbon hydrogen was approved by the Chamber of Deputies in Brazil, awaiting President's sanction.
  • The Bill establishes the National Low Carbon Emission Hydrogen Policy and incentivizes the development of the hydrogen industry.
  • Brazil aims to position itself in the global low-carbon hydrogen market by implementing best practices and ensuring credibility and transparency in the product.
  • The country plans to have low-carbon hydrogen hubs by 2035, with over US$30 billion already announced in hydrogen projects.
The Chamber of Deputies in Brazil has approved Bill No. 2,038/2023, which paves the way for a legal framework for low-carbon hydrogen in the country. This bill, now awaiting presidential approval, establishes the National Low Carbon Emission Hydrogen Policy and provides incentives for the growth of the hydrogen industry. The proposed legislation includes the governance of the hydrogen certification process through the creation of the Brazilian Hydrogen Certification System (SBCH2). Minister Alexandre Silveira highlighted the significance of this new instrument in providing legal security and predictability for investments in hydrogen projects, contributing to the decarbonization of Brazil's energy matrix. The bill aligns with international best practices to ensure Brazil's competitiveness in the global low-carbon hydrogen market. The Three-Year Plan of the National Hydrogen Program prioritized defining the legal-regulatory framework for hydrogen, emphasizing the government's commitment to expanding financing opportunities for low-carbon hydrogen projects. By 2035, Brazil aims to establish low-carbon hydrogen hubs in the country, with over US$30 billion already allocated to hydrogen projects, showcasing the nation's dedication to fostering development, innovation, and opportunities in the hydrogen sector.
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