Brazil's Legal Framework for Low-Carbon Hydrogen: Law No. 14.948/2024
Key Ideas
- Law No. 14.948/2024 in Brazil establishes the National Policy for Low-Carbon Hydrogen, providing a legal framework for the energy transition.
- The legislation includes the creation of the Special Incentive Regime for the Production of Low-Carbon Hydrogen (Rehidro) and grants regulatory authority to ANP.
- Presidential veto of Articles 30-35 was due to imprecision regarding tax credit specifics, prompting the proposal of Bill of Law No. 3.027/2024 for clarification.
- Mayer Brown provides insights on the legal aspects of the new law, emphasizing the importance of seeking specific legal advice for related actions.
On Friday, August 2, 2024, Brazil sanctioned Law No. 14.948/2024, establishing the legal framework for low-carbon hydrogen. This significant legislation focuses on regulating low-carbon hydrogen as a key component of the country's energy transition. The National Policy for Low-Carbon Hydrogen aims to incentivize the industry through mechanisms like the Special Incentive Regime for the Production of Low-Carbon Hydrogen (Rehidro). ANP has been entrusted with overseeing the hydrogen supply chain and related activities. The presidential veto of Articles 30-35 highlighted the need for clarity regarding tax credits linked to the Social Contribution on Net Profit (CSLL), leading to the proposal of Bill of Law No. 3.027/2024 to address this issue. Mayer Brown offers analysis on the legal implications of this new law, emphasizing the importance of seeking tailored legal advice before making decisions in this evolving regulatory landscape.