A special Senate committee has filed a bill to regulate the low-carbon hydrogen market in the country, providing incentives for the sector, prohibiting water exploration in conflict areas, and focusing on achieving the goals of the Paris Agreement.
The project defines the different types of low-carbon hydrogen, creates a development program for the activity, and provides a national policy for the area.
The regularization of the activity is seen by the government as an important step towards the energy transition.
During Jair Bolsonaro's government, Brazil moved away from achieving the goals agreed in Paris, which forecast the reduction of greenhouse gas production. President Lula has reiterated in speeches that the country will comply with them.
The proposal has created a low-carbon hydrogen development program, which should act as a way of encouraging the sector's activities through the transfer of funds for a maximum period of ten years.
The resources would come from the pre-salt, the Energy Development Account, and the Union Budget itself, in addition to financing.
Translated by Cassy Dias