Hydrogen decree launches new regulatory phase and sets rules for R$ 18.3 billion in incentives
Regulation of the Brazilian low-carbon hydrogen market has entered a new phase with the publication of Decree No. 13.096/2026. This decree details key instruments of the National Hydrogen Policy and establishes rules for certification, tax incentives, and the development of the new industrial value chain. The text regulates the Brazilian Hydrogen Certification System (SBCH2), the Special Incentive Regime for Low-Carbon Hydrogen Production (Rehidro), and the Low-Carbon Hydrogen Development Program (PHBC). The strategy links access to public support with compliance with environmental, technological, industrial, and economic requirements, aiming to turn these incentives into drivers of decarbonization, innovation, local content, and private investment mobilization.
Incentives now require climate performance, innovation, and industrial commitments
A key advancement is the regulation of Rehidro, which provides for the suspension of PIS/Pasep and Cofins taxes on specific goods and services, making the conversion of this benefit to a zero-tax rate conditional upon meeting established requirements. Projects must demonstrate low-carbon hydrogen certification and fulfill specific commitments, including investing a minimum of 1% of the total project value in sustainable development initiatives and another 1% in research, development, and innovation (RD&I), alongside meeting minimum local content requirements for goods and services based on the chosen technological pathway.
Meanwhile, the SBCH2 will employ a life-cycle analysis to determine emission intensity, using an initial threshold of 7 kg of CO₂ equivalent per kilogram of hydrogen produced as a benchmark, while incorporating mechanisms for registration, traceability, and the prevention of double counting. On the economic front, the PHBC could mobilize up to R$ 18.3 billion in tax credits between 2030 and 2034—subject to budgetary and fiscal limits—through a competitive process conducted by the Ministry of Finance. This competition must consider, at a minimum, the lowest tax credit requested per unit of product, prioritizing applications capable of decarbonizing hard-to-abate sectors such as fertilizers, steelmaking, cement, chemicals, petrochemicals, and heavy transport.
This design signals a significant shift in Brazil's hydrogen policy: rather than merely stimulating installed capacity, the new framework seeks to link public funds to the actual production or consumption of low-emission hydrogen and to the demonstration of environmental, technological, and industrial results.
