Aside from one exception for the insurance sector, the text is virtually identical to the version recently approved in the Senate

Brazil’s House of Representatives has approved Bill No. 182/2024, which aims to establish the Brazilian Greenhouse Gas Emissions Trading System (SBCE).

The text is practically identical to a version approved in the Senate last week, save for a provision specifically concerning the insurance sector. The bill now mandates that insurance companies, open-ended private pension funds, capitalization companies, and legal reinsurers annually invest at least 1% of their technical reserves and provisions in environmental assets specified in the bill (Brazilian Emission Quotas – CBEs, Verified Emission Reduction or Removal Certificates – CVREs, and carbon credits) or in investment funds focused on environmental assets. The Senate’s version had provided for the possibility of such entities obtaining authorization to invest up to 0.5% of their reserves in the specified assets. However, the House of Representatives returned this figure to 1%.

The bill is now subject to presidential assent, though a specific date for this has yet to be set.

Mattos Filho has prepared exclusive material outlining the main aspects of the bill approved in the Senate and upheld in the House of Representatives.

For further information on this topic, please contact Mattos Filho’s Environmental Law & Climate Change practice area.

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Via Mattos Filho