15.1. Introduction – Evolution of Environmental Protection
Since the Stockholm Conference (1972), environmental issues have occupied an increasingly prominent position on the global agenda. In Brazil, this movement gained momentum from the 1980s onward, with the enactment of landmark legislation such as the National Environmental Policy (Política Nacional do Meio Ambiente), the Public Civil Action Law (Lei da Ação Civil Pública), and the Federal Constitution of 1988.
From that point on, the environmental legal framework expanded significantly, accompanied by greater activity on the part of the Judiciary, the Public Prosecutor’s Office (Ministério Público), civil society organizations, and enforcement agencies.
In parallel, social and market demand for sustainable development models has grown, driving the adoption of ESG practices and the incorporation of environmental criteria in capital allocation. In this context, compliance with environmental legislation and the adoption of sustainable practices have become essential factors for risk mitigation, competitiveness, and the long-term viability of companies.
15.2. General Aspects of Environmental Protection
15.2.1 Environmental Jurisdiction
Under the Brazilian Federal Constitution, the Federal Government and the States have concurrent jurisdiction to legislate on environmental protection and pollution control, as well as on liability for environmental damage. In addition, Municipalities are also authorized to legislate on environmental matters relating to issues considered of local interest and may supplement federal and state laws, as applicable.
There is, therefore, a broad range of federal, state, and municipal laws pertaining to environmental matters. Although there is some divergence, the prevailing understanding among legal scholars and the Judiciary is that, in cases of conflicting laws, the one that provides the greatest environmental protection shall prevail.
With respect to the exercise of environmental oversight, protection, improvement, and recovery activities in Brazil, all levels of government have shared jurisdiction, meaning that all of them may, through the agencies comprising SISNAMA – National Environmental System (Sistema Nacional do Meio Ambiente), exercise such activities, subject to the definitions and limits imposed by Complementary Law No. 140/11.
The Public Prosecutor’s Office (Ministério Público), in turn, has institutional authority under the Brazilian Federal Constitution to initiate civil inquiries (inquéritos civis) and file Public Civil Actions (ações civis públicas) relating to environmental damage, as well as to bring actions in connection with crimes committed against the environment.
15.2.2. Environmental Liability in Brazil
Under the Federal Constitution and the National Environmental Policy, environmental liability may arise independently and cumulatively in the civil, administrative, and criminal spheres.
In the civil sphere, liability arises from damage caused to the environment and is aimed exclusively at its remediation. According to legal scholarship and case law, such remediation must take place through restoration to the prior condition, compensation, or indemnification, in that mandatory order of preference. The entities with standing to protect the environment in court are the Public Prosecutor’s Office, the Public Defender’s Office (Defensoria Pública), the Federal Government, States and Municipalities, autonomous government agencies (autarquias), public enterprises, foundations, or mixed-capital companies (sociedades de economia mista), as well as associations dedicated to environmental protection, in addition to Brazilian citizens, through a popular action (ação popular).
Under the National Environmental Policy, civil environmental liability is strict (i.e., independent of fault on the part of those who caused the damage). However, it is still necessary to demonstrate the actual occurrence of damage and the causal link between the damage and the activity carried out. In this regard, the agent will only be held liable when the damage and the connection between the damage and the activity are proven.
It should also be noted that, under the National Environmental Policy, civil environmental liability is joint and several among those responsible, directly or indirectly, for the activity causing environmental degradation.
Administrative liability, in turn, arises when there is a violation of environmental legislation, understood, under the terms of Federal Decree No. 6,514/08, as any action or omission that violates the legal rules governing the use, enjoyment, promotion, protection, and recovery of the environment.
The commission of an environmental infraction may subject the agent to penalties such as warnings, fines ranging from R$50.00 to R$50,000,000.00, total or partial suspension of activities, suspension or cancellation of licenses, permits, and authorizations, prohibition from entering into contracts with the government, from enjoying tax benefits, and/or from obtaining financing from official credit institutions, among others.
Finally, criminal liability arises when the agent engages in conduct classified as an environmental crime under Federal Law No. 9,605/1998, and must be determined through a public criminal action, which is the exclusive competence of the Public Prosecutor’s Office. The attribution of criminal liability requires proof that the accused acted with negligence (culpa) or willful misconduct (dolo), as the case may be.
15.2.2.1 Climate Litigation in Brazil
Changes in temperature and climate patterns have been mobilizing governments, the private sector, the third sector, and civil society. The fronts of action are diverse, and each plays a role in combating climate change.
In this scenario, so-called “climate litigation” has emerged, which can be broadly understood as the judicialization of conflicts related to the mitigation of and/or adaptation to climate change. The most visible aspect of this phenomenon is the filing of lawsuits intended to compel or encourage the government or private-law entities to adopt specific measures that contribute to achieving climate targets, or to cease engaging in conduct that is harmful to the fight against climate change.
Although Brazilian climate litigation initially arose predominantly through actions aimed at controlling public policies and holding the government accountable, in recent years there has been a significant increase in claims filed against private actors. The Brazilian experience demonstrates that climate litigation tends to mobilize traditional environmental law instruments, particularly those related to civil environmental liability, environmental licensing, and the protection of collective rights.
At the same time, new themes are gradually being incorporated, such as the socio-environmental integrity of carbon projects and credits, the sharing of benefits associated with carbon market initiatives, climate risk assessment, transparency duties, and greenwashing allegations, indicating a process of diversification and maturation of climate litigation in the country1.
1 PLATAFORMA JUMA. Database on climate litigation in Brazil. Pontifícia Universidade Católica do Rio de Janeiro (PUC-Rio). Available at: https://plataformajuma.jur.puc-rio.br/. Accessed on: 08/11/2026.
15.2.3. Main Federal Laws
At the federal level, two primary pieces of legislation form the basic structure of environmental protection: the National Environmental Policy (Política Nacional do Meio Ambiente) and Federal Law No. 9,605/1998, which establishes criminal and administrative sanctions for conduct and activities harmful to the environment.
The National Environmental Policy was established by Federal Law No. 6,938/1981 and sets forth principles, guidelines, and mechanisms aimed at the preservation, improvement, and recovery of environmental quality.
Federal Law No. 9,605/1998, in turn, addresses environmental crimes and the criminal and administrative sanctions arising from conduct and activities considered harmful to the environment. On one hand, this law describes the conduct classified as crimes and prescribes the applicable penalties. It also provides for the possibility of attributing criminal liability to legal entities (pessoas jurídicas), in addition to personal liability, when the violation is committed as a result of a decision taken by their representatives in the interest or benefit of the company.
On the other hand, Federal Law No. 9,605/1998 establishes the general rules of administrative environmental liability. To regulate this matter, Federal Decree No. 6,514/2008 was enacted, which governs the administrative sanctioning process and describes the conduct classified as administrative infractions, as well as the respective applicable sanctions.
15.2.4 Environmental Protection Instruments
The instruments aimed at the preservation, improvement, and recovery of the environment are diverse. In general, they may be classified as follows: direct regulation instruments (which form part of the command-and-control system, referred to in item 15.2.3), economic instruments (which seek to encourage the adoption of environmentally positive practices), and communication/information instruments.
Under the National Environmental Policy, the main environmental instruments are: (i) environmental quality standards; (ii) environmental zoning; (iii) environmental impact assessments; (iv) licensing of activities that are actually or potentially polluting; (v) incentives for the production and installation of equipment and the creation or absorption of technology aimed at improving environmental quality; (vi) specially protected territorial areas; (vii) the national environmental information system; (viii) registries of actually or potentially polluting activities; (ix) penalties for failure to comply with measures necessary for the preservation or correction of environmental degradation; and (x) economic instruments, such as forest concessions (concessão florestal), environmental easements (servidão ambiental), environmental insurance, and others.
Depending on the type of activity to be carried out and its location, different instruments may be applicable. The following are highlighted below, without prejudice to other equally important ones, such as soil and water quality standards, limits applicable to the discharge of liquid effluents, and atmospheric emission limits.
Direct Regulation Instruments
15.2.4.1 Environmental Licensing
Under Brazilian environmental legislation, activities considered actually or potentially polluting, as well as those that, in any form, may cause environmental degradation, are subject to prior environmental licensing, which consists of a public administrative procedure through which the competent environmental agency evaluates and authorizes the location, installation, expansion, and operation of such activities, considering the applicable legal, regulatory, and technical provisions.
Environmental licensing, currently governed by Law No. 15,190/2025 (General Environmental Licensing Law – LGLA, Lei Geral de Licenciamento Ambiental), generally comprises three distinct and successive phases, namely:
Preliminary License (LP – Licença Prévia) – granted at the preliminary planning phase of the project or activity, approving its location and design, attesting to its environmental viability, and establishing the basic requirements and conditions to be met in subsequent phases of implementation;
Installation License (LI – Licença de Instalação) – authorizes the installation of the project or activity in accordance with the specifications set out in the approved plans, programs, and projects, including environmental control measures and other conditions; and
Operating License (LO – Licença de Operação) – authorizes the operation of the project, after verification of effective compliance with the requirements of the preceding licenses, with the necessary environmental control measures and conditions established for the operation of the project.
The LGLA also recognizes other licensing modalities, including the Single Environmental License (LAU – Licença Ambiental Única), the Adherence and Commitment License (LAC – Licença por Adesão e Compromisso), the Corrective Operating License (LOC – Licença de Operação Corretiva), and the Special Environmental License (LAE – Licença Ambiental Especial). These modalities seek to adapt the administrative procedure to the size, pollution potential, nature, and strategic relevance of the projects, allowing for more simplified processes in certain situations.
The required environmental studies are now expressly linked to the type of applicable license. Depending on the activity, the following may be required, among other documents: Environmental Impact Study and Environmental Impact Report (EIA/RIMA – Estudo de Impacto Ambiental e Relatório de Impacto Ambiental), Basic Environmental Plan (PBA), Environmental Control Plan (PCA), Environmental Control Report (RCA), and Project Characterization Report (RCE).
The legislation also standardizes aspects related to the validity periods of environmental licenses and provides for the automatic extension of a license when the renewal application is filed at least 120 days before its expiration, with the license remaining valid until the final decision of the licensing authority.
Finally, Law No. 15,190/2025 reinforces the integration between environmental licensing and other environmental authorizations necessary for the implementation of projects, including the possibility of certain licenses incorporating authorizations related to the clearing of native vegetation and wildlife management, subject to the applicable specific legislation.
It should be noted that, under the terms of Complementary Law No. 140/11, the authority to issue environmental licenses and authorizations is generally assigned to state environmental agencies. In certain situations, the authority to conduct environmental licensing falls to the federal environmental agency (Brazilian Institute of the Environment and Renewable Natural Resources – IBAMA, Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis) or to municipal environmental agencies.
Although environmental licensing is the responsibility of a single federative entity – to be determined depending on the characteristics of the activity to be carried out – other public bodies (such as the National Historical and Artistic Heritage Institute, the Palmares Cultural Foundation, and the National Foundation of Indigenous Peoples) may be called to participate in the process as intervening parties, through consultations, opinions, and other forms of non-binding input that may influence the decision of the licensing environmental agency.
Regardless of whether a project or activity is subject to environmental licensing or not, any environmental authorizations and permits that may be required, including those related to vegetation clearing and the use of water resources, must be obtained.
Finally, it should be noted that certain provisions of Law No. 15,190/2025 are currently subject to constitutional review before the Federal Supreme Court (STF – Supremo Tribunal Federal), through direct actions challenging their compatibility with the Federal Constitution. As of the date of this publication, such proceedings remain pending judgment and the challenged provisions continue to produce effects, unless a contrary decision is issued by the STF.
15.2.4.2 Reverse Logistics
Reverse logistics (logística reversa) constitutes one of the instruments provided by Brazilian legislation for strengthening shared responsibility among manufacturers, importers, distributors, retailers, and consumers regarding solid waste management. Its purpose is to enable the collection and return of certain solid waste to the business sector for reuse in the production cycle or for other environmentally appropriate final disposal, including, among other alternatives, reuse, recycling, composting, recovery, and energy recovery.
This instrument was formally created by Federal Law No. 12,305/2010, which established the National Solid Waste Policy (Política Nacional de Resíduos Sólidos), and is currently regulated by Federal Decree No. 10,936/2022.
In general terms, under a reverse logistics system, retailers and distributors are responsible for receiving products and packaging returned by consumers and delivering them to manufacturers or importers for recycling and/or other forms of reuse in the production cycle and/or environmentally appropriate disposal.
Under the applicable legislation, various products are subject to reverse logistics, such as pesticides, batteries, tires, lubricating oils, fluorescent sodium vapor, mercury vapor, and mixed light lamps, electronic and electrical products and their components, and pharmaceuticals.
The legislation also provides for the possibility of expanding the list of products subject to reverse logistics, which must be accomplished through the issuance of decrees or the execution of sectoral agreements (acordos setoriais) or commitment terms, following verification of the technical and economic feasibility of implementing such a system. In this regard, a reverse logistics system has been established at the national level for, among others, pesticides, their residues and packaging, pharmaceuticals, general packaging composed of paper and cardboard, plastic, aluminum, steel, glass, or combinations of these materials, such as long-life carton packaging.
More recently, the reverse logistics of certain plastic packaging became the subject of specific regulation through Decree No. 12,688/2025. In addition to establishing targets and mechanisms for the recovery and environmentally appropriate disposal of such waste, the Decree introduced obligations related to the incorporation of recycled content and the promotion of circularity of plastic materials, reinforcing the transition to circular economy models.
It should be noted that reverse logistics systems may also be established at the state and municipal levels, likewise through decrees, sectoral agreements, or commitment terms.
15.2.4.3 Access to Genetic Heritage and Associated Traditional Knowledge
Brazil has ratified the provisions of the Convention on Biological Diversity (“CBD”), committing to establish domestic regulations regarding access to genetic resources under its jurisdiction and to protect traditional knowledge of local communities and indigenous peoples, which is valuable for the conservation and sustainable use of biodiversity.
At the end of 2022, the new Global Biodiversity Framework was signed during COP 15 in Montreal. This is an accessory agreement to the CBD, with 4 strategic goals for 2050 and 23 action targets for 2030, which was implemented in Brazil by the National Biodiversity Commission (“CONABIO”) through CONABIO Resolution No. 09/2024, establishing National Biodiversity Targets. This regulation will serve as the main strategic reference for updating the National Biodiversity Strategy and Action Plan (“EPANB”), regulated by Decree No. 12,485/2025.
Currently, access to the country’s genetic heritage (patrimônio genético) and associated traditional knowledge (conhecimento tradicional associado) is governed by Federal Law No. 13,123/2015 and Federal Decree No. 8,772/2016 (collectively referred to as the “Biodiversity Law”).
Under the Biodiversity Law, genetic heritage is the genetic information derived from flora, fauna, microorganisms, or other species found in nature, including those originating from the metabolism of such living beings, while associated traditional knowledge is the information or practice of indigenous peoples, traditional communities, or traditional farmers regarding the properties and direct or indirect uses associated with genetic heritage.
Under the Biodiversity Law, whenever there is research and/or technological development involving Brazilian genetic heritage or associated traditional knowledge, access is deemed to occur2. The applicable regulatory requirements will depend on the specific case and may involve registration in the National System for the Management of Genetic Heritage and Associated Traditional Knowledge (“SisGen”), prior authorization from the provider of any associated traditional knowledge, benefit-sharing (in monetary or non-monetary forms), among others.
Enforcement of the Biodiversity Law is carried out by IBAMA, which may:
impose fines ranging from (i) R$1,000.00 to R$100,000.00 when the infraction is committed by a natural person; and from (ii) R$10,000.00 to R$10,000,000.00 when committed by a legal entity;
seize (i) samples containing active ingredients from Brazilian biodiversity that have been subject to access; (ii) instruments used to acquire or process the active ingredient from Brazilian biodiversity or associated traditional knowledge that has been subject to access; (iii) products derived from access to genetic heritage or associated traditional knowledge; or (iv) products obtained through information originating from associated traditional knowledge;
temporarily suspend the manufacture and sale of finished products or reproductive material originating from access to genetic heritage or associated traditional knowledge until regularized;
suspend (wholly or partially) the specific activity related to the infraction; and
suspend or cancel any certificate or authorization that has been granted.
In addition to the sanctions described above, companies that violate the law may have their name associated with biopiracy, which represents a significant reputational risk.
In recent years, news regarding climate change, the threat of species extinction, and social inequality has become even more frequent. The sustainable use of biodiversity resources and compliance with the rules on access to genetic heritage and associated traditional knowledge, as well as benefit-sharing by companies, is therefore a competitive advantage and a consistent way of implementing the principles of the CBD and its accessory agreements. This is also aligned with environmental policies, stimulates socio-economic development, contributes to public health, and encourages research, development, and innovation.
2 Foreign companies may only engage in access activities if associated with Brazilian companies.
15.2.4.4 Water Resources
Brazil holds one of the largest freshwater reserves in the world and has a comprehensive regulatory framework for the management, use, and protection of water resources. Companies intending to carry out industrial, agricultural, mining, energy, real estate, logistics, or infrastructure activities in Brazil must evaluate, at the initial stages of the project, aspects related to water availability, restrictions on water use, and requirements applicable to effluent discharge.
Water resource management in Brazil is primarily governed by Federal Law No. 9,433/1997, which established the National Water Resources Policy (Política Nacional de Recursos Hídricos) and the National Water Resources Management System. Under Brazilian legislation, water constitutes a public domain asset, a limited natural resource endowed with economic value, and its management must ensure availability and multiple uses for present and future generations.
The authority to regulate water resource use varies according to the ownership of the water body. The Federal Government has jurisdiction over interstate and transboundary rivers and certain federal reservoirs, while the States regulate water bodies located entirely within their territories, including, as a rule, groundwater. Consequently, regulatory requirements may vary significantly across different Brazilian states.
The main regulatory instrument related to water resource use is the water use rights grant (outorga de direito de uso dos recursos hídricos). Depending on the activity carried out and the applicable jurisdiction, such a grant may be required for surface water extraction, groundwater extraction through wells, diversion of watercourses, construction of hydraulic structures, effluent discharge, and other activities capable of altering the quantity or quality of water resources.
Grants typically establish operational conditions, maximum extraction volumes, authorized flow rates, monitoring obligations, reporting requirements, and validity periods. The use of water resources without proper authorization may result in fines, operational restrictions, suspension of activities, and impacts on environmental licensing processes.
Groundwater plays a relevant role in the supply of industrial, commercial, and agricultural activities. The drilling and operation of wells generally depend on specific authorizations, registrations, grants, monitoring, and compliance with additional technical requirements. When intended for human consumption, sanitary standards and water quality criteria apply.
The discharge of effluents into water bodies is also subject to regulatory control. In general, companies must obtain the relevant authorizations, comply with discharge standards, and conduct periodic monitoring of effluent quality and receiving water bodies.
At the federal level, CONAMA Resolution No. 357/2005 establishes the classification of water bodies, as well as guidelines and environmental quality standards. CONAMA Resolution No. 430/2011 supplements this framework by governing the conditions and standards applicable to effluent discharge.
Although Brazil possesses great water availability in absolute terms, the distribution of resources is uneven across regions. Events of water scarcity, conflicts over water use, and extraction restrictions have become more frequent in certain locations, particularly due to climate change and increased demand. Therefore, projects with high water consumption should consider specific assessments regarding water availability, feasibility of obtaining grants, and supply security.
15.2.4.5 Vegetation Clearing and Use of Forest Resources
The protection of native vegetation constitutes one of the pillars of Brazilian environmental law. The primary regulatory framework on this subject is Federal Law No. 12,651/2012 (Forest Code – Código Florestal), which establishes rules for the conservation, sustainable use, and clearing of native vegetation, as well as for the protection of environmentally sensitive areas. Depending on the location and characteristics of the project, state and municipal regulations and specific legislation for certain biomes may also apply, such as the Atlantic Forest Law3.
As a general rule, the clearing of native vegetation requires prior authorization from the competent environmental agency and may be conditioned on the adoption of mitigation, compensation, or environmental recovery measures.
The Forest Code establishes special protection for Permanent Preservation Areas (APPs – Áreas de Preservação Permanente), which include, among other examples, riverbanks, springs, water bodies, steep slopes, hilltops, and other environmentally sensitive areas. These areas perform essential functions related to the conservation of water resources, geological stability, biodiversity protection, and ecological connectivity.
Interventions in APPs are only permitted in exceptional circumstances provided by law, such as situations of public utility, social interest, or low environmental impact, subject to the requirements and conditions established by the competent authority.
In addition to APPs, rural properties must maintain Legal Reserve (Reserva Legal) areas, the percentages of which vary according to location and biome. In certain regions of the Legal Amazon, for example, up to 80% of the property may be subject to the obligation of maintaining native vegetation. For properties located in Cerrado areas of the Legal Amazon, the percentage is 35%, with a minimum of 20% on the property. In other regions of the country, for properties located in forest areas or other forms of native vegetation, the percentage is 20%.
The sustainable exploitation of forest resources, including timber and non-timber products, is permitted under Brazilian law provided it is carried out in compliance with the applicable legal requirements. Depending on the activity, forest management plans, specific authorizations, traceability systems, proof of legal origin, and transport controls for forest products may be required.
Another relevant instrument is the Rural Environmental Registry (CAR – Cadastro Ambiental Rural), a mandatory electronic registry for rural properties that plays a central role in monitoring compliance with the obligations set forth in the Forest Code. Properties with environmental liabilities may be subject to adherence to Environmental Regularization Programs (PRAs – Programas de Regularização Ambiental).
Failure to comply with native vegetation protection rules may result in the imposition of administrative sanctions, embargoes on activities, obligations to undertake environmental recovery, and civil and criminal liability. In addition to legal risks, irregularities related to deforestation and land use may generate restrictions on access to credit, reputational impacts, and scrutiny from investors and international supply chains.
3 Federal Law No. 11,428/2006.
Economic Instruments
15.2.4.6 Payment for Environmental Services
With a view to encouraging the recovery and preservation of the environment – and, ultimately, fostering sustainable development – Law No. 14,119/2021 was enacted, establishing the National Policy on Payment for Environmental Services (PNPSA – Política Nacional de Pagamento por Serviços Ambientais) and instituting the Federal Payment for Environmental Services Program (PFPSA – Programa Federal de Pagamento por Serviços Ambientais) and the National Registry of Payment for Environmental Services (CNPSA – Cadastro Nacional de Pagamento por Serviços Ambientais).
Payment for environmental services represents a voluntary transaction through which the provider of such services is remunerated through financial resources or by other means (such as the provision of social improvements to communities, compensation linked to emission reduction certificates, green bonds (títulos verdes), among other modalities to be established by act of the managing body of the PNPSA), by a specific payer. Environmental services are those that favor the maintenance, recovery, or improvement of the environmental conditions of ecosystems.
Any natural or legal person, whether public or private, or a family or community group, may serve as a provider of environmental services. On the other hand, the payer may be the government, a civil society organization, or a private agent, whether a natural or legal person, at the national or international level.
To specifically regulate payment for environmental services by the Federal Government, the PFPSA was created, aimed primarily at actions for the maintenance, recovery, or improvement of vegetation cover in priority areas for conservation, combating habitat fragmentation, forming biodiversity corridors, and conserving water resources, without prejudice to the identification of other environmental services eligible for remuneration. The PFPSA will prioritize – though it is not restricted to – services provided by traditional communities, indigenous peoples, family farmers, and rural family entrepreneurs.
The PFPSA may have as its object, among others, areas covered by native vegetation or areas subject to ecosystem restoration, recovery of native vegetation cover, or agroforestry planting. For private areas to be eligible, the properties on which they are located must be registered in the CAR (if located in a rural zone) or in compliance with the respective master plan (if located in an urban zone). Natural and legal persons that are in default of conduct adjustment agreements or commitment terms entered into with environmental authorities, as well as areas embargoed by SISNAMA agencies, may not be covered by the application of public resources for payment for environmental services.
To systematize information regarding payments for environmental services, Law No. 14,119/2021 established the National Registry of Payment for Environmental Services (CNPSA), which will compile, without prejudice to other data and documents, contracts for payment for environmental services involving public agents, potential areas and their respective environmental services, and the methodologies and data supporting the valuation of environmental assets, as well as information on plans, programs, and projects comprising the PFPSA.
It should be noted that the essential clauses for each type of payment for environmental services contract to be entered into under the PFPSA will be defined by a specific act, not yet issued. Notwithstanding, there is no impediment to such contracts being entered into immediately, independently of the PFPSA, including between private parties.
The PNPSA and the PFPSA were regulated by Decree No. 13,018/2026, which defined the governance structure of the policy and addressed relevant aspects for the implementation of public and private payment for environmental services initiatives. The decree designated the Ministry of the Environment and Climate Change (Ministério do Meio Ambiente e Mudança do Clima) as the managing body of the PNPSA, responsible for coordinating the policy, issuing technical standards, and articulating among different federative levels and private actors.
Decree No. 13,018/2026 also established socio-environmental safeguards applicable to programs, projects, and PSA initiatives. Such safeguards aim to ensure compliance with environmental and climate legislation, protection of ecosystems, and respect for the rights of indigenous peoples, traditional communities, and other groups potentially affected by payment for environmental services initiatives.
At the institutional level, the decree provided for the creation of the Strategic Committee of the Federal Payment for Environmental Services Program (CEPSA), responsible for supporting the implementation of the PFPSA, as well as the National Knowledge Network on Payment for Environmental Services (Rede-PSA – Rede Nacional de Conhecimento sobre Pagamento por Serviços Ambientais), aimed at the dissemination of technical knowledge, capacity building, and support for structuring programs and projects related to the topic.
The regulation reiterates the possibility of developing PSA initiatives by both the government and private agents, and provides that investment funds, financial institutions, and other organizations may structure remuneration mechanisms linked to the conservation, restoration, and improvement of ecosystem services, expanding legal certainty for such operations, which has the potential to foster more opportunities for private investment in biodiversity conservation and nature-based solutions.
PSA transactions entered into under the PFPSA enjoy differentiated tax treatment. Amounts received as payment for environmental services are not included in the tax base for Income Tax, CSLL, PIS/Pasep, or Cofins. However, for this benefit to apply to transactions between private parties, the contract must be registered in the CNPSA. According to Decree No. 13,018/2026, this matter will be further regulated by a joint act of the Ministry of the Environment and Climate Change and the Ministry of Finance.
Although Decree No. 13,018/2026 has regulated the PNPSA and established its governance structure, the National Registry of Payment for Environmental Services (CNPSA) is still in the process of implementation. Information disclosed by the Ministry of the Environment and Climate Change indicates that the registry is under development and that the implementation of the policy will be gradual, such that part of the institutional infrastructure necessary for the full operationalization of the system is still being structured.
In any event, at the level of various States of the Federation, there are state and even municipal regulations establishing PSA programs, and the expected objectives have been achieved. Accordingly, depending on the location and the project to be installed, a survey of the legislation on this matter is recommended.
15.2.4.7 Bioeconomy
The concept of bioeconomy (bioeconomia) refers to a model of productive and economic development capable of generating products, processes, and services efficiently, in an environmentally responsible and socially just manner. The topic has been gaining a prominent position at both the international and national levels, emerging as a promising instrument for encouraging practices consistent with the principles of sustainable development.
For the purpose of coordinating and implementing public policies aimed at the implementation of bioeconomy in the country, the National Bioeconomy Strategy (Estratégia Nacional de Bioeconomia) was created under the terms of Decree No. 12,044/2024.
This instrument establishes the guidelines and objectives of the strategy, with emphasis on stimulating economic activities that promote the sustainable use of biodiversity, the decarbonization of production processes, the promotion of bioindustrialization, respect for the rights of indigenous peoples and traditional communities, and the reduction of regional inequalities. In addition, the strategy aims at the fair sharing of benefits from access to genetic heritage, the incentive for the inclusion of women and youth in the bioeconomy, and the expansion of an innovation environment based on biodiversity.
With a view to the implementation and operationalization of the National Bioeconomy Strategy, in 2026, the National Bioeconomy Development Plan (PNDBio – Plano Nacional de Desenvolvimento da Bioeconomia) was launched, whose governance structure, missions, strategic actions, and indicators were approved by CNBio Resolution 07/2025, with the aspirational targets and additional chapters related to safeguards, financing, expected impacts until 2035, and the national science, technology, and innovation system having been approved by CNBio Resolution 08/2025.
Although Decree No. 12,044/2024 was enacted, Brazil does not yet have a National Bioeconomy Policy. Currently, two important legislative initiatives on the subject are pending before the National Congress: Bill No. 1855/2022 in the Federal Senate and Complementary Bill No. 150/2022 in the Chamber of Deputies. Although both proposals seek to establish a national framework for the development of bioeconomy, they differ in their scope and governance model, and neither has been enacted into law to date.
Authors: Adriana Mathias Baptista, Bianca Bilton Signorini Antacli, Danilo Lambert Vieira de Sousa and Walkyria Bozza Kluge
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