Brazil has passed new legislation, which marks its first legal framework for Carbon Capture and Storage (CCS), focusing on regulating and inspecting activities involving the capture, transportation, and geological storage of carbon dioxide (CO2).
On October 8, Federal Law No. 14.993/2024, stemming from Bill No. 528/2020, known as “Fuels of the Future” bill, was enacted.
This legal milestone strengthens Brazil’s commitment to decarbonization efforts by formalizing a key component of climate action, ensuring both environmental protection and the potential for economic benefits through carbon credits, global law firm Mayer Brown said in a comment.
Under the new framework, the National Agency of Petroleum, Gas and Biofuels (ANP) will oversee CCS operations, issuing regulatory standards and granting authorizations.
These authorizations, valid for 30 years and renewable for the same period, will be required for carbon capture, pipeline transport, and storage activities.
Additionally, in areas with existing exploration and production (E&P) contracts, ANP will consult the rights holders before granting CCS authorization.
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Notably, carbon storage for enhanced oil recovery will be treated separately from standalone CCS operations.
The law also imposes several obligations on CCS operators, such as identifying and addressing emergencies, maintaining records on permanent carbon storage, and conducting inventories to monitor carbon dioxide storage and leakage.
According to Mayer Brown, this inventory will aid in obtaining carbon credit certification.
Federal Law No. 14.993/2024 is expected to provide greater regulatory clarity and legal certainty, promoting the growth of CCS activities in Brazil.
While Brazil’s existing environmental framework addresses CCS licensing, this law is expected to inspire new, detailed regulations from agencies within Brazil’s National Environmental System (SISNAMA).
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