Brazil's President, Luiz Inacio Lula da Silva, has approved legislation establishing a legal framework for low-carbon hydrogen. The framework, effective from January 1, aims to attract investment in the production of low-carbon hydrogen and its derivatives to enhance Brazil's competitiveness in the global market. However, the President vetoed specific language related to tax credits, citing concerns about conflicting with established financial and budgetary laws and creating legal uncertainties. Despite the veto, the move is seen as a positive step towards promoting green hydrogen production in Brazil. Green hydrogen is viewed as a promising alternative to help the country transition away from its oil industry, which is projected to decline in the 2030s. Brazil is recognized for its potential to produce the cheapest green hydrogen globally, with or without subsidies, according to BloombergNEF. This capability positions Brazil favorably for future energy transition efforts and could bolster its standing in the international energy market. By fostering an environment conducive to low-carbon hydrogen production, Brazil aims to leverage its natural resources and technological capabilities to drive sustainable energy practices and reduce carbon emissions. The approval of this legislation marks a significant milestone in Brazil's journey towards embracing renewable energy sources and positioning itself as a key player in the global green hydrogen economy.