On August 25, 2025, at its eighth meeting, the Interinstitutional Committee of the Brazilian Sustainable Taxonomy (CITSB) approved, the final technical reports of the Brazilian Sustainable Taxonomy (TSB). The TSB establishes criteria for classifying economic activities according to their contribution to climate, environmental, and social objectives, with the aim of guiding investment decisions and the formulation of public policies. The TSB is part of the sustainable finance pillar of the Ecological Transformation Plan, launched by Brazil's Federal Government at the 2023 United Nations Climate Change Conference.
The CITSB was established by Decree No. 11,961 of March 25, 2024, with the purpose of coordinating the development and implementation of the TSB. It is chaired by the Ministry of Finance, composed of 27 government agencies, and includes an Advisory Committee with 18 civil society organizations.
Following a public consultation and analysis of the contributions received, the CITSB Working Groups produced eight sectoral technical reports, two thematic reports, and one on minimum safeguards. The first edition of the TSB covers eight economic sectors:
- Agriculture, forestry protection, fishing, and aquaculture;
- Extractive industry;
- Manufacturing industry;
- Electricity and gas;
- Water, sewage, waste, and decontamination;
- Construction;
- Transportation, storage, and postal services; and
- Social services (including tourism, urban planning, and ICTs).
The official publication of the reports is expected in September 2025, with gradual implementation through regulatory adaptation by financial regulators, covering large companies and financial institutions. Future editions are expected to expand coverage to critical minerals, motor vehicles, and sectors related to the bioeconomy and biodiversity, as well as to provide specific guidelines for micro, small, and medium-sized enterprises.
The TSB also has the potential to generate significant practical implications for companies. While its initial application is linked to guiding investments and public policies, its criteria may be used by oversight bodies, the Public Prosecutor's Office, and other stakeholders as interpretive parameters. Business practices classified as inconsistent with the TSB's climate, environmental, and social objectives may serve as an additional basis for liability lawsuits or challenges to projects, raising the level of expectations regarding corporate conduct on socio-environmental matters.
The Environmental, Climate Change and Sustainability practice of Tauil & Chequer Advogados in association with Mayer Brown is available to provide further clarification on this matter.
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