Brazil advances in CCUS regulation: Legal Framework faces challenges
- REDAÇÃO H2RADAR
- Mar 19
- 2 min read
Brazil takes an important step towards regulating CCUS (Carbon Capture, Utilization and Storage) , a key technology for mitigating greenhouse gas (GHG) emissions and enabling the country’s energy transition. A new report details the challenges and opportunities for implementing the regulatory framework, highlighting the need for incentives and public policies to boost this emerging activity.
The importance of CCUS in decarbonization and regulatory challenges
CCUS emerges as a strategic solution to reduce emissions in sectors that are difficult to electrify, such as heavy industries and the hydrocarbon sector. In Brazil, the implementation of this regulatory framework gains relevance in a context of growing commitment to climate goals and the transition to a low-carbon economy .
However, regulation still faces obstacles. According to the report, the National Agency of Petroleum, Natural Gas and Biofuels (ANP) has been appointed as the entity responsible for supervising and monitoring the activity. However, Brazil still lacks clear instruments to stimulate investment in this sector. In addition, regulation will need to contemplate different business models, from integrated hubs to bioenergy projects with carbon capture and storage (BECCS), taking advantage of the strong national ethanol production.
Perspectives for implementation: pilot projects and incentive policy
International experience shows that CCUS projects still require government incentives to become economically viable . In Brazil, this need is even more evident, considering that the regulatory framework is in its initial phase. The proposal to adopt experimental regulations, including pilot projects, appears to be a viable alternative to foster the activity while the full legal framework is not established.
Among the main projects underway in the country , initiatives by Petrobras and FS Agrisolutions stand out, serving as models for future regulations. The report also points out that the processing of bills, including the replacement for the Fuel of the Future Bill, is a fundamental step, but its implementation may take at least two years.
Given this scenario, the advancement of the CCUS regulatory framework in Brazil will depend on a balance between incentives , flexible regulation and attracting private investment. With strategic planning and well-structured policies, the country can become a global reference in carbon capture and storage, driving its energy transition and contributing significantly to the international climate agenda.
