A Green Economy Requires Mining
A more sustainable future with lower greenhouse gas emissions and carbon neutrality requires shifting from fossil fuel sources to renewable energy and increased investment in solar plants, wind farms, and electric vehicles. This transition raises the demand for mineral resources. Working towards a greener economy also requires regulatory efforts that ensure greater legal security and create financing mechanisms. In this context, the government is developing plans to leverage Brazil's existing mineral potential, exemplified by Decree No. 11.964/2024, which introduces an incentivized debenture mechanism previously unavailable to the mineral sector.
Objective of the Decree:
- To establish criteria and conditions for investment projects to be considered as priorities.
- To regulate Article 2 of Law No. 12.431/2011, which deals with the differentiated incidence of Income Tax on debentures issued to implement investment projects in the infrastructure or economically intensive production sectors, considered as priorities.
What is Priority? Investment projects in infrastructure that simultaneously meet two requirements:
- Subject to a concession, permit, authorization, or lease instrument;
- Include actions for implementation, expansion, recovery, adaptation, or modernization.
It is noteworthy that these projects should be related to the mining sectors aimed at transforming strategic minerals for the energy transition, logistics and transportation, urban mobility, and energy. Finally, projects covered by this decree benefit ventures that promote actions and interventions aimed at reducing and mitigating greenhouse gas emissions in their activities.
