ENVIRONMENTAL – BIOFUELS POLICY (RENOVABIO): BOOKKEEPING OF DECARBONIZATION CREDITS (CBIOS)
On November 21, 2019, the Ministry of Mines and Energy published Ordinance No. 419 ("Ordinance") on bookkeeping, registration and negotiation of Decarbonization Credits ("CBIOs"), applicable to fuel distributors as a compulsory annual goal to reduce emission of greenhouse gases.
Among the main provisions of the Ordinance, we highlight:
- The bookkeeping of CBIOs shall be subject matter of a specific agreement;
- Possibility to retain CBIO's portfolio management service, ensuring the negotiation powers of such credits on behalf of third parties;
- CBIOs shall be kept by the registry entity in individual accounts, operated through credit and debit;
- Registry entity shall keep records of operations for a minimum of five years, as well as publish daily CBIOs registration on its website;
- Fuels distributors will prove compliance with individual goals through the 'retirement' of CBIOs, procedure that aims the definitive withdrawal of the CBIO from the market;
- CBIOs are valid up to their withdrawal from the market.
Finally, attending bookkeepers' request, the Ordinance provides that bookkeepers are not liable for merits of the CBIOs (i.e., compliance with environmental rules to qualify for negotiating CBIOs by the biofuel producer/importer).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.