National Program for the Decarbonization of Natural Gas Producers and Importers and Incentives for Biomethane

Federal Decree No. 12,614/2025 was published on September 5, regulating Law No. 14,993/2024 (Future Fuel Law), establishing decarbonization targets for the natural gas sector with a focus on the progressive use of biomethane and adopting the Biomethane Guarantee of Origin Certificate (CGOB) to ensure traceability and transparency in the chain.

Key guidelines

Natural gas producers and importers (obligated agents)

• They must purchase biomethane accompanied by the respective CGOBs (or corresponding CGOBs) to meet the annual regulatory emissions reduction target.

• The CNPE will set the mandatory target for the following year by November 1 of each year; the target starts at 1% in 2026 and cannot exceed 10% of the total volume produced or imported. Small producers/importers may be excluded from the calculation basis, and there is a specific adjustment for gas used in electricity generation.

• The ANP will allocate individual targets by December 1 of the previous year and will regulate the allocation for the first two years of operation of new agents. Proof of compliance with the target by each agent must be provided by December 31 of the year in force.

• Transitional rules: for 2026, the target will be “pro rata” from the issuance of the first CGOB, with joint collection with the 2027 target.

Biomethane producers and importers

• They must offer products in accordance with ANP standards, hire a certifying agent of origin, and a bookkeeper to issue the CGOB. The ANP has up to 180 days to regulate operational procedures.

• The CGOB is issued in proportion to the biomethane sold or self-consumed, kept in individual accounts by registering entities, and will be valid for up to 18 months; the ANP will regulate traceability, credibility, and fungibility with other certificates.

Integration with other climate instruments

• The decree requires compatibility with other GHG reduction policies, explicitly citing the PNMC and the national regulated market (MBRE/SBCE or equivalent), and allows CGOBs (and fungible certificates) retired in the voluntary market to be deducted from regulatory targets.

Violations and penalties

• Penalties include fines (ranging from R$ 100,000 to R$ 50 million, not less than the economic benefit obtained), suspension of the issuance of new CGOBs, and cancellation of illegally issued CGOBs (cumulative penalties). The ANP will publish annual compliance rates and penalties imposed.

Observations on the nature of CGOB

• The decree distinguishes CGOB from “carbon credits” and CBIOs (RenovaBio): the environmental attribute of CGOB should not be confused with instruments for offsetting or removing emissions. This is relevant for tax inferences (see below).

Taxation: CGOB vs. carbon credits (SBCE)

1) Carbon credits and SBCE assets (Law No. 15,042/2024): The Regulated Carbon Market Law (SBCE) introduced specific rules:

• IR/CSLL: gains on the sale of carbon credits and SBCE assets are taxed according to the taxpayer's regime (capital gains, net gains on the stock exchange/organized market, etc.). The deduction of expenses for the generation/certification/registration of credits is allowed on the basis of IRPJ/CSLL (actual profit), and also when there is cancellation to offset emissions.

• PIS/Cofins: the revenues from these sales are not subject to PIS/Cofins.

• Conversion: the conversion of carbon credits into SBCE assets does not constitute a taxable event.

2) CGOB (biomethane)

• The decree does not contain specific tax rules for CGOB. In addition, the text excludes CGOB from being treated as “carbon credits”/CBIO, which indicates that the exemption from PIS/Cofins provided for in Law 15,042/2024 does not automatically apply to CGOB transactions (unless specifically provided for in the future). Until a federal rule addresses the issue, debates already seen with CBIOs/voluntary market (legal nature of the security; accounting framework; incidence of PIS/Cofins and IR/CSLL effects) are likely to persist.

3) Consumption tax reform (LC No. 214/2025 — IBS/CBS)

• LC 214/2025 establishes the IBS/CBS and begins the transition from the PIS/Cofins/ICMS/ISS system. The text is general and does not contain specific rules for CGOB; the basis for the new taxes is broad for goods/services, with a design that is neutral and non-cumulative. In theory, without specific legislation, transactions involving securities such as CGOB may be subject to taxation depending on their classification (e.g., financial service/intangible asset), but this will depend on supplementary regulations and how the CVM/ANP and infra-legal legislation treat the nature and trading channel of CGOB.

Conclusion:

• Carbon credits (SBCE): already subject to federal tax rules (IR/CSLL; no PIS/Cofins; deductions and conversion rules).

• CGOB: there is no specific federal rule on PIS/Cofins/IBS/CBS; as the decree separates CGOB from “carbon credits,” it is recommended to treat CGOB taxation with caution and monitor ANP/CVM regulations and any Federal Revenue Service rules on the legal nature and tax treatment of the security.