Brazil Enforces Mineral Fuels and Low-Carbon Hydrogen Standards

Brazil has introduced new regulatory measures to strengthen oversight of mineral fuels, mineral oils, bituminous substances, and low-carbon hydrogen through Decree No. 13.094 and Decree No. 13.096

Compliance Overview: Brazil’s New Regulatory Measures for Mineral Fuels, Oils, Bituminous Substances, and Low-Carbon Hydrogen

Brazil has strengthened oversight of mineral fuels, mineral oils, bituminous substances, and low-carbon hydrogen through Decree No. 13,094 (regulating the National Sustainable Aviation Fuel Program – ProBioQAV) and Decree No. 13,096 (regulating the National Low-Carbon Hydrogen Policy and the Special Incentive Regime for Low-Carbon Hydrogen Production – Rehidro). These decrees establish certification, monitoring, fiscal incentives, and enforcement mechanisms to ensure compliance with emission reduction targets and sustainable production standards.

Regulation Analysis

1. Low-Carbon Hydrogen (Decree No. 13,096)

Key Provisions

• Certification Requirement:

Fiscal credits for low-carbon hydrogen are contingent on certification issued by a Brazilian System for Low-Carbon Hydrogen Certification (SBCH₂)-accredited entity. The Federal Revenue Service of Brazil (RFB) will disclose the amounts of fiscal credits granted and their beneficiaries¹.

• Certification must cover hydrogen produced or consumed in Brazil within the timeline set by Art. 4, §1, Law No. 14,990/2024¹.

• Eligibility for Fiscal Incentives (Rehidro):

To qualify for Rehidro benefits, companies must:

1. Obtain preliminary or co-preliminary approval from the Ministry of Mines and Energy (MME), supported by a technical analysis from the National Petroleum Agency (ANP)¹.
2. Secure definitive or co-definitive approval from the RFB¹.
3. Submit a project implementation timeline (e.g., deadlines for licensing, construction, and commercial operation)¹.

• Failure to meet deadlines (e.g., non-operation, lack of certified production) triggers penalties, including execution of performance guarantees¹.

• Definition of Raw Materials:

The RFB will issue a normative act specifying when water, electricity, natural gas, and other inputs qualify as raw materials for low-carbon hydrogen production¹.

• Fiscal Credit Applicability:

Credits are prioritized for industrial consumers in sectors such as fertilizers, steel, cement, chemicals, petrochemicals, and heavy transport¹.

• Credits are limited by fiscal targets and the Program for Low-Carbon Hydrogen Development (PHBC) objectives¹.

• Penalties:

The RFB is responsible for applying and collecting penalties for non-compliance with Rehidro conditions¹.

Governance

• The National Energy Policy Council (CNPE) oversees the National Low-Carbon Hydrogen Policy, with technical support from the Management Committee of the National Hydrogen Program (Coges-PNH₂)¹.
  • Coges-PNH₂ consolidates hydrogen’s role in Brazil’s low-carbon energy matrix and harmonizes it with policies like RenovaBio and the National Energy Transition Policy¹.

2. Sustainable Aviation Fuel (SAF) (Decree No. 13,094)

Key Provisions

• Mandatory Certification:

All SAF commercialized in Brazil for domestic or international flights must be linked to a Sustainability Certificate (CS-SAF), issued by an ANP-accredited entity².

• The CS-SAF must include traceability data (e.g., CNPJ of the primary issuer, unique lot identification, and Proof of Sustainability (PoS))².

• Emission Reduction Methodology:

The National Civil Aviation Agency (ANAC) will establish a calculation methodology to verify emission reductions from SAF use, aligning with:

• CORSIA (ICAO) or its successor program².
• RenovaBio’s carbon intensity tool².
• Only the well-to-wake emission reduction portion is recognized for national mandate compliance².

• Regulatory Targets (Mandate):

ANAC will:

1. Monitor compliance with emission reduction targets by airlines in the year following the obligation².
2. Publish annual results on its website².
3. Define registration processes for target compliance and information-sharing among regulatory bodies².

• The CNPE, via the Permanent Technical Committee for the Future Fuel (CTP-CF), conducts continuous monitoring of SAF supply, market conditions, and environmental effectiveness².
• If public interest is at risk, CTP-CF may propose adjustments to the mandate².

• Documentation Requirements:

To issue a CS-SAF, the primary issuer must provide:

• PoS from certified SAF².
• Electronic invoice for SAF or Synthetic Aviation Turbine Fuel (SATF) (renewable portion only)².
• Quality certificates for SAF/SATF².

• Prohibition on Double Counting:

SAF used to generate CS-SAF cannot also generate RenovaBio’s Decarbonization Credits (CBIO)².

3. Comparison Table: Key Requirements

Summary Answer

Brazil’s Decree No. 13,096 and Decree No. 13,094 introduce rigorous compliance frameworks for low-carbon hydrogen and sustainable aviation fuel (SAF). For low-carbon hydrogen, fiscal incentives under Rehidro require certification by SBCH₂-accredited entities and approval from the MME and RFB, with penalties for non-compliance¹. For SAF, all commercialized fuel must be linked to a CS-SAF, with emission reductions verified by ANAC using methodologies aligned with CORSIA and RenovaBio². Both decrees emphasize traceability, certification, and alignment with broader decarbonization policies, while prohibiting double counting of emission reductions^{2, 1}. The CNPE and Coges-PNH₂ play central roles in harmonizing these measures with Brazil’s energy transition goals.

Sources

1. ↩ WTO TBT notification 26-04262 — Brazil https://members.wto.org/crnattachments/2026/TBT/BRA/26_04262_00_e.pdf
2. ↩ WTO TBT notification 26-04261 — Brazil https://members.wto.org/crnattachments/2026/TBT/BRA/26_04261_00_x.pdf