ANP Issues Rules On Biomethane Targets And CGOB Issuance

On March 4, 2026, the Brazilian National Agency for Petroleum, Natural Gas and Biofuels ("ANP") published Resolutions No. 995/2026 and No. 996/2026, which implements the National Program for Decarbonization of Natural Gas Producers and Importers and Incentives for Biomethane (the "Program"), established by Law No. 14,993/2024 (the "Future Fuels Law") and regulated by Decree No. 12,614/2025.

ANP Resolution No. 995/2026 sets forth the individualization of the annual mandatory targets applicable to natural gas producers and importers through the use of biomethane.

In summary, the regulation establishes that natural gas producers and importers with an average annual production or import volume exceeding 160,000 cubic meters will be subject to individual mandatory targets under the Program. Similar to the model adopted under RenovaBio, the Resolution provides that each agent's annual individual target will be calculated based on the national annual target, to be defined by the National Energy Policy Council ("CNPE"), taking into account the agent's share in the total volume of natural gas marketed.

Compliance with individual targets will occur through the retirement of Biomethane Certificates of Guarantee of Origin ("CGOB"). The targets for the year 2026 will be published on ANP's website within one month after the issuance of the first CGOB, and compliance will be required jointly with the target applicable to the year 2027.

Failure to comply with the annual individual target will subject the obligated party to a fine ranging from R$100,000 to R$50,000,000. In the event of recurrence, the penalty may be increased by at least 100% of the fine amount. Additionally, when the fine does not correspond to the economic benefit obtained from the non-compliance, the ANP may impose temporary suspension, in whole or in part, of the obligated party's activities.

ANP Resolution No. 996/2026, in turn, establishes the rules for certification of biomethane producers and importers for the purpose of issuing CGOBs, the procedures for generating the underlying certificate backing (lastro), and the accreditation of Origin Certification Agents ("ACO").

One relevant provision introduced by the regulation is the possibility of issuing Decarbonization Credits ("CBIO") and CGOBs based on the same invoice. In such cases, to ensure transparency to the purchaser, the CGOB registry must disclose that the same invoice also generated CBIOs. In addition, for producers certified under both programs, the request for CGOB issuance must occur at least 60 days after the issuance of the invoice, allowing verification of any CBIO issuance.

The regulation also establishes that biomethane origin certification carried out by the ACO will be valid for four years, compared to the two-year validity period proposed in the draft submitted to public consultation. Furthermore, if a CGOB that has already been used for compliance purposes is subsequently traded, the purchaser may not use it again to meet regulatory targets, but may still use its environmental attribute through its retirement.

The Resolution also provides that requests for the issuance of CGOB backing must be submitted within 5 to 120 days after the issuance of the invoice. For the purpose of generating certificate backing, only invoices issued by the primary issuer after the approval of biomethane origin certification by the ANP will be accepted. As a transitional rule, for primary issuers obtaining certification during 2026, invoices issued as of January 1, 2026 will be accepted.

Finally, the Resolution defines the conduct characterized as administrative infractions under the Program, subjecting offenders to sanctions ranging from warnings to cancellation of certification.

Tauil & Chequer Advogados in association with Mayer Brown's Environmental, Climate Change and Sustainability and Energy Practices remains available for further clarification regarding the regulatory impacts of the new resolutions.