Brazil has passed new legislation marking its first legal framework for carbon capture and storage (CCS).

Federal Law No. 14.993/2024, stemming from Bill No. 528/2020, known as the “Fuels of the Future” bill, was enacted on 8 October and focuses on regulating and inspecting activities involving the capture, transportation, and geological storage of carbon dioxide (CO₂), thereby strengthening Brazil’s commitment to decarbonisation efforts.

Under the new framework, the National Agency of Petroleum, Gas and Biofuels (ANP) will oversee CCS operations, issuing regulatory standards and granting authorisations.

These authorisations, 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 authorisation.

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.

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).

Federal Law No. 14.993/2024 is expected to provide greater regulatory clarity and legal certainty, promoting the growth of CCS activities in Brazil.

As well as establishing a regulatory framework for carbon capture and storage (CCS) technologies, the larger Fuels of the Future bill sets the stage for Brazil to unlock investments of approximately R$ 260 billion, expected to prevent the emission of 705 million tons of CO₂ by 2037. The legislation will bolster various industries and encourage the development of new sustainable technologies, driving economic growth while mitigating environmental impact.

Other programmes aimed at transforming Brazil’s energy landscape include:

• National Sustainable Aviation Fuel Program
• National Green Diesel Program (PNDV)
• Biomethane and Biogas Program
• Increased Ethanol and Biodiesel Blends