Brazil President Luiz Inacio Lula da Silva has approved a groundbreaking legislation to establish a legal framework for low-carbon hydrogen, with the aim of attracting investments and advancing Brazil's position in the global hydrogen market. The legislation, set to be enforced from January 1st, focuses on encouraging production of low-carbon hydrogen and its derivatives to enhance competitiveness. While the bill was greenlighted, certain tax credits were vetoed by Lula, who emphasized the importance of upholding financial and budgetary regulations and avoiding legal ambiguities. The move is seen as pivotal in steering Brazil towards decreasing reliance on the oil industry that is projected to decline in the coming years. Brazil's potential to produce the most cost-effective green hydrogen in the world, even without subsidies, highlights the country's competitive edge in this sector. The decision by Lula to adopt this legislation signifies a strategic shift towards embracing green hydrogen as a key player in Brazil's energy transition, offering a glimpse of a more sustainable future for the country.