Brazilian President Luiz Inacio Lula da Silva has endorsed a legislation that sets a legal foundation for low-carbon hydrogen in the country. This decision is geared towards attracting investments and stimulating the production of low-carbon hydrogen and its derivatives. The framework, scheduled to come into force on January 1st, aims to enhance Brazil's competitiveness in the global market. While the legislation was welcomed, President Lula vetoed a section that would have provided specific tax credits. The President highlighted concerns that the incentives outlined in the vetoed section could contradict financial and budgetary regulations, potentially leading to legal uncertainties. The move towards promoting green hydrogen is pivotal for Brazil's future as it provides an opportunity for the country to shift away from its oil industry, which is projected to face a decline in the 2030s. Notably, Brazil is identified as having the capability to produce the most cost-effective green hydrogen globally, even without subsidies. This development showcases Brazil's commitment to advancing sustainable energy practices and aligning with the global energy transition. The decision made by President Lula signifies a significant step towards fostering a more environmentally friendly and competitive energy landscape in Brazil.