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Brazil: Five federal decrees on climate change enacted

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In brief

On 5 June 2023, Federal Decree Nos. 11,546, 11,547, 11,548, 11,549, and 11,550 were enacted, setting forth provisions related to climate change.

Further details

Decree No. 11.550/2023 establishes the Interministerial Committee on Climate Change (CIM). The CIM will be the institutional instrument responsible for defining guidelines and deliberating on the country’s strategies within the scope of the Paris Agreement under the United Nations Framework Convention on Climate Change. Furthermore, it expressly revokes  Decree No. 11,075/2022, which established procedures for the elaboration of Sectorial Plans for the Mitigation of Climate Change and instituted the National System for the Reduction of Greenhouse Gas Emissions (SINARE); Decree no. 10,846/2021, which created the Interministerial Committee on Climate Change and Green Growth; and Decree no. 10,845/2021, which instituted the National Green Growth Program.

Decree No. 11,549/2023 amends Decree No. 9,578/2018, which establishes the National Fund on Climate Change and the National Policy on Climate Change. Among other provisions, the rule retains he recent amendment to Law No. 12,11/2009 (National Climate Change Fund Law), which enables the Brazilian Development Bank (BNDES) to qualify private agents to act in the financing operations of the National Climate Change Fund. The decree also inserts, among others, representatives of indigenous peoples and traditional communities in the Management Committee of the National Fund for Climate Change.

Furthermore, Decree No. 11,548/2023 revokes the former Decree 10,144/2019 to establish the National Commission for Reducing Greenhouse Gas Emissions from Deforestation and Forest Degradation, Conservation of Forest Carbon Stocks, Sustainable Management of Forests and Enhancement of Forest Carbon Stocks. The commission’s membership was also broadened to include representation of indigenous peoples, traditional peoples and communities, as well as non-governmental organizations, higher education or research institutions, and the private sector with activities in the socio-environmental area. The new text foresees that the use of REDD+ results for eventual transactions in carbon markets will be regulated by an act of the Federal Executive Power.

Decree No. 11,547/2023 revokes Decree No. 10,275/2020, establishing the Low Carbon Industry Technical Committee. In particular, it changes the list of representatives that comprise the committee and institutes as the Committee’s Executive-Secretary, the Secretariat of Green Economy, Decarbonization and Bioindustry of the Ministry of Development, Industry, Commerce and Services (MDIC).

Finally, Decree No. 11,546/2023 creates the National Council for the 30th Conference of the Parties of the United Nations Framework Convention on Climate Change, which will be held in Brazil. Experts and representatives from other agencies and entities, public and private, may be invited by the technical committee to participate in meetings, without voting rights, or to technically support its activities.

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Renata Campetti Amaral joined the firm in 2002 and became a partner in 2013. She is the head of the firm’s Climate Change, Environmental Law and Sustainability group in Brazil, and the leader of Ablfs McKfnzif’s global climate change group in Latin America. Is also the coordinator of the sustainability initiatives conducted by the office’s B-Green Committee. Renata assists the major players in the Brazilian market in Nature-bases Solution (NbS) projects, transaction of carbon credits, implementation of decarbonization strategies and carbon-related advocacy and regulatory matters. Renata leads several of the largest environmental and regularization cases in the country. She has extensive experience in sustainability matters, as well as in managing crises and negotiating with stakeholders. Advises on negotiating with authorities; judicial and administrative litigation; reviewing environmental aspects of institutions and financial operations; drafting environmental provisions in contracts and other commercial operations. Renata has extensive experience in dealing with environmental management, legal auditing and other organizational practices; regulatory and institutional analysis and environmental control; negotiation and implementation of environmental remediation plans; environmental licensing; legal aspects of biodiversity protection; environmental crisis management; development of preventive policies and strategies for companies; negotiation and drafting of contracts for the purchase and sale of carbon credits and acting in transactions related to various aspects of the energy transition.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

Author

Giovani Bruno Tomasoni joined the Firm in 2008 and became partner of the Environment, Consumer and Sustainability practice group in 2020. He practices with focus on Environment, Public Law, Energy, Forestry, and helps clients in the internalization of concepts such as sustainability, ESG, circular economy, environmental compliance, among others.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

Author

Alexandre Salomão Jabra joined the firm in 2010. He integrates the environmental, consumer and sustainability practice group, with focus on consultancies, administrative procedures lawsuits and negotiations. In the environmental area, Alexandre has a wide breadth of experience in cases involving contamination, environmental and urbanistic licensing procedures, environmental liability, management of solid wastes and take-back requirements, effluents, electromagnet pollution, air emissions, forestry matters, protected areas and minorities, biodiversity, controlled chemicals products, socio and environmental liability of financial institutions, climate change, carbon markets and urbanistic regularization. In the consumer area, Alexandre has experience with consultations, administrative and judicial procedures related to Consumer Law issues with federal, state and municipal agencies, such as DPDC, PROCONs, Public Prosecutors and Municipalities involving recall, offers, data protection, misleading and abusive advertising, privacy, e-commerce, abusive clauses, commercial practices, terms and conditions and violations to the Brazilian Consumer Defense Code. Alexandre represents several clients in the oil&gas, automotive, chemicals, technology, food, communications, mining, finance and services sectors.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

Author

Manuela Demarche joined the Firm in 2017, and has been working with Environmental Law since 2010. She is currently a Senior Associate of the firm’s Environment, Sustainability and Climate Change practice group.
She has several years of experience in complex matters connected to environmental, sustainability and climate change, and her practice focus on a wide range of matters, particularly in connection to environmental liability, licensing proceedings, carbon and M&A transactions and cross-border disputes. During 2022, she did an attorney training program in the U.S. and has worked as a Legal Extern for the American Clean Power Association.
She regularly advises international and domestic clients in relevant cases, including preparing opinions, overseeing due diligences, drafting administrative and judicial claims for disputes arising from controversial environmental matters. Under her umbrella, she regularly deals with regularization (air pollution, effluents, solid waste, contaminated areas), circular economy, take-back schemes, extended producer responsibility, carbon markets, REDD+, biodiversity and crisis management.
Awards and Recognitions
Manuela Demarche is recognized for her work as an outstanding professional – “Associate-to-watch” – in Environmental Law in Brazil, by the publication Chambers and Partners. She was also mentioned by Análise Advocacia Mulher.
*Trench Rossi Watanabe and Baker McKenzie have executed a strategic cooperation agreement for consulting on foreign law.

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