ARTICLE
27 December 2024

Brazil's Recycling Incentive Law: Ministry Of Environment And Climate Change Publishes Related Ordinance

MB
Mayer Brown

Contributor

Mayer Brown is a distinctively global law firm, uniquely positioned to advise the world’s leading companies and financial institutions on their most complex deals and disputes. We have deep experience in high-stakes litigation and complex transactions across industry sectors, including our signature strength, the global financial services industry.
Ordinance GM/MMA No. 1,250/2024 has been enacted by the Brazilian Ministry of Environment and Climate Change to regulate the presentation, analysis, approval monitoring, accountability and evaluation...
Brazil Environment

Ordinance GM/MMA No. 1,250/2024 has been enacted by the Brazilian Ministry of Environment and Climate Change to regulate the presentation, analysis, approval monitoring, accountability and evaluation of proposal and projects resulting from the Incentive Mechanism for the Recycling Industry and Production Chain. The Ordinance establishes that proposals shall be aligned with at least one of the goals set forth in Article 3 of Law No. 14,260/2021 (the Law of Incentives for the Recycling Industry) and regulated by Federal Decree No. 12,106/2024. (See our Legal Update "Brazil Publishes Federal Decree Regulating Recycling Incentive Law.")

The Incentive

The Law of Incentives for the Recycling Industry provides for tax deductions on amounts allocated to directly support recycling projects, up to 6% of income tax for individuals and up to 1% for legal entities in each quarterly or annual assessment period.

Eligible Participants

As provided for in the ordinance, proposals may be submitted by:

(i) enterprises of recyclable material collectors
(ii) educational, research, science, and technology institutions
(iii) building condominium associations
(iv) non-profits serving public interests (Oscips)
(v) non-governmental organizations (OSCs)
(vi) public agencies and consortia, autonomous agencies, public foundations, and similar entities
(vii) microenterprises and small businesses

In addition, whenever possible, projects must involve enterprises of recyclable material collectors or self-employed collectors in their execution.

Information Required in the Proposal

The proposals are required to include information such as the purpose, problem(s) to be solved, relationship with the incentive program's objectives and guidelines, target audience, expected results, goals, and schedule.

Project Value

The minimum value for a proposal is R$50,000, and the maximum is R$8 million.

Proposal Submission

Proposals must be submitted to the Ministry of Environment and Climate Change by means of the Partnership Management System (Transferegov).

Project Term

Once approved, the execution of the proposed project will be authorized by means of an Execution Authorization Term, which has a maximum term of three years.

Visit us at mayerbrown.com

Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.

© Copyright 2024. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More