The Agribusiness Newsletter brings information and news about the main regulations and legal texts relating to the regulation of agribusiness in Brazil. This initiative seeks to cover the agribusiness industry on its transactional, litigation, tax and regulatory levels, and is an invitation for all of those working in this market to both access important news and comments on vital topics from the sector.

This material is for informative purposes only, and should not be used for decision-making. Specific legal advice can be provided by our legal team.

NEWS

FIAGRO’s net worth doubles in the last 12 months

The net worth of the Investment Funds in Agroindustrial Productive Chains (“FIAGRO”) doubled in the last 12 months ended in October 2024, reaching BRL 40.9 billion, according to data from the Brazilian Financial and Capital Markets Association (“ANBIMA”).

FIAGRO-FII (Real Estate Investment Funds) represent the largest share of this value, with 44% of the total, followed by FIAGRO-FIP (Investment Funds in Participations), with 41.8%, and FIAGRO-FIDC (Investment Funds in Credit Rights), with 14.2%.

The net acquisition of agribusiness funds was positive for the third consecutive month in October, totaling BRL 51.1 million. In 2024, net inflows totaled BRL1.2 billion. The FIAGRO-FIDC concentrated most of the contributions in October, while the FIAGRO-FII had net redemptions.

FIAGRO issuances reached BRL 15.1 million in October, with two offerings: One from FIAGRO-FIDC and the other from FIAGRO-FII. Year-to-date, the volume of issuances totals BRL 3.1 billion, and institutional investors represent the majority of subscriptions.

The FIAGRO industry had, in October 2024, 853 thousand accounts and 117 investment classes. Since then, the number of funds has been accounted for by class, in accordance with CVM Resolution No. 175/2022, reflecting the increasing diversification and maturity of this market.

For more information: FIAGRO’s net worth doubles in the last 12 months.

FIAGRO industry grows 124.3% in a year

The Securities and Exchange Commission (“CVM”) announced that the FIAGRO industry grew 124.3% over the last year, according to the 8th edition of the CVM Agribusiness Bulletin.

FIAGRO’s net worth reached BRL 42 billion in September 2024, standing out as one of the fastest growing segments in capital markets.

The Agribusiness Receivable Certificates (“CRA”) market also showed a significant growth of 47.4% in the same period, with a net worth of BRL 47.4 billion. This data highlights the importance of agribusiness in capital markets and FIAGRO’s potential to boost financing for the Brazilian agroindustrial sector.

The CVM published, in September 2024, CVM Resolution No. 214, establishing the final FIAGRO regulations. This new regulation aims to facilitate the access of the agricultural sector to public savings funds, ensuring high standards of conduct, transparency and governance. The regulation also seeks to protect investors and strengthen the presence of agribusiness in capital markets.

David Menegon, CVM’s Securitization and Agribusiness manager, highlighted that the significant growth of FIAGRO demonstrates its potential for diversification of investments and agribusiness financing. The CVM remains committed to boosting the participation of agribusiness in capital markets, fostering a more robust and transparent business environment.

For more information, access FIAGRO industry grows 124.3% in a year.

Agribusiness private credit advances in turbulent economic landscape

As the traditional rural credit of Plano Safra 24/25 is disbursed at a slower pace, agribusiness financing maintained traction via private finance and capital markets in 2024.

The sum of the active portfolios of Rural Product Notes (“CPR”), Agribusiness Credit Letters (“LCA”), Agribusiness Credit Rights Certificates (“CDCA”), CRA and Fiagro exceeded BRL 1.2 trillion in November 2024, an increase of 33% compared to the previous year.

The stock of CPR registered in November 2024 was BRL 465.25 billion, an increase of 59% compared to the previous year. CRA issuances grew by 20%, rising from BRL 123.5 billion in November 2023 to BRL 148 billion in the same period in 2024. FIAGROs’ net worth increased by 127% in 12 months, reaching BRL 41.3 billion in October 2024.

The requirement to register all CPR, regardless of their value, which entered into force in 2024, contributed to this growth. In addition, the increase in CDCA issuances as of August 2024 was also a highlight, and the stock came close to BRL 38 billion in November 2024, a growth of 23% compared to the previous year.

These data show the evolution of financial instruments in agribusiness, highlighting the importance of private credit and the capital market for the sector.

For more information: Agribusiness private credit advances in turbulent economic landscape.

AGRO IN THE MEDIA

Agribusiness group works to overturn Lula’s veto on taxation of FIAGROS – Demarest

REGULATION

TAX REGULATION

RFB publishes additional regulations on transfer pricing rules for commodities

On December 31, 2024, the Brazilian Federal Revenue Office (“RFB”) published RFB Normative Instruction No. 2,246/2024 and COPES Executive Declaratory Act No. 1/2024, providing for controlled transactions with commodities subject to transfer pricing rules.

Transfer pricing rules establish market standards for international controlled transactions in order to avoid artificial distortions in the bases for calculating income taxes. These rules were recently modified in Brazil by Law No. 14,596/2023, which aligned them with the guidelines of the Organisation for Economic Co-operation and Development (“OECD”).

RFB expands the list of tax benefits subject to Dirbi

On December 30, 2024, the RFB published RFB Normative Instruction No. 2,241/2024, expanding the list of tax benefits subject to declaration reported through the Declaration of Incentives, Waivers, Benefits and Immunities of a Tax Nature (“Dirbi”), mainly aimed at PIS/Cofins incentives linked to the Manaus Free Trade Zone and specific products.

The new benefits included in the rule, in practice, increase the scope of the ancillary obligation recently created through Law No. 14,973/2024 (which also provides for other topics, such as the gradual re-taxation of payroll, the reduction of the COFINS-Import surcharge, the updating of the value of real estate and the reinstatement of the Special Regularization of Foreign Exchange and Tax Assets (“RERCT”).

Brazilian Tax Reform: First supplementary law published

On January 16, 2025, Supplementary Law No. 214/2025 was published after the Executive Branch approved Supplementary Bill (“PLP”) No. 68/2024. The supplementary law provides for general rules regarding the Subnational Tax on Goods and Services (IBS), the Federal Contribution on Goods and Services (CBS), and the Federal Excise Tax (“selective tax,” or IS), in addition to creating the IBS Management Committee.

PLP No. 68/2024 was approved with vetoes on specific provisions by the President of Brazil, among which we highlight the removal of the provision that established that investment and equity funds would not be contributors to the IBS and CBS, including FIAGRO. In other words, under the veto, which will still be analyzed by the Chamber of Deputies, the funds, including FIAGRO, are considered taxpayers for purposes of the new taxes.

A total or partial veto is when the President of the Republic disagrees with aspects of a bill approved by the legislative houses of the National Congress (the House of Representatives and the Federal Senate).

The Federal Constitution stipulates that a veto must be considered by members of congress in a joint session, within 30 calendar days, and an absolute majority of the votes cast by representatives (257) and senators (41) is required for it to be rejected, counted separately. In addition to the vetoes, the tax reform is still under analysis.

As next steps, we highlight:

• the enactment of regulations;
• the definition of the reference rate by resolution of the Federal Senate; and
• the sanctioning of the second Supplementary Bill, PLP No. 108/2024, which aims to regulate the establishment and structuring of the Management Committee, administrative litigation, the distribution of revenue and the provisions relating to the transition from ICMS to IBS.

Renewal of tax benefits in the state of São Paulo

Decree No. 69,291/2025 extended the tax benefits linked to ICMS Agreement No. 100/97, i.e., exemption in internal transactions and reduction of the calculation basis in interstate transactions with agricultural inputs, until December 31, 2025.

In addition, the benefit of exemption from the ICMS tax on the return of empty pesticide containers and their respective caps, provided for in ICMS Agreement 42/01, was renewed until December 31, 2026, through Decree No. 69,268/2024.

The original deadline for enjoying these benefits in the state was December 31, 2024.

FINANCIAL REGULATION

Regulated carbon credit is created in Brazil and meets ANBIMA’s suggestions

On December 12, 2024, Law No. 15,042 was approved, which regulates the carbon market in Brazil, creating the Brazilian Greenhouse Gas Emissions Trading System (“SBCE”).

This system will coordinate trading securities representing emission permits and greenhouse gas offsets, classified as securities. The new law is regarded as a major step forward for sustainability in the country and will ensure that Brazil can engage in dialogue with the international market associated with the Paris Agreement. Its main targets are the adoption of measures to reduce greenhouse gas emissions and the use of carbon credits to mitigate these emissions.

The SBCE will maintain a national emission inventory with a ceiling that will decrease annually, increasing the price of carbon and boosting the decarbonization of the economy. In addition, institutions that emit more than 10,000 tons of greenhouse gases must report them to the SBCE, and those with more than 25,000 tons of emissions must offset them. Trading can be carried out through emission permits and carbon credits, following specific rules.

The classification of carbon credits as securities, defended by ANBIMA, provides greater legal certainty and confidence for investors. Eric Altafim, director of ANBIMA, pointed out that this measure democratizes access to the product in Brazil, using the capital markets’ expertise to promote the new segment. Certification standards for generating credits will be in line with international standards.

In addition, the SBCE management body will regulate the methodologies for generating carbon credits and provide guidelines for the international transfer of these credits. This new legal framework is seen as an important step towards the growth of the carbon market in Brazil, benefiting both investors and the environment.

For more information: Regulated carbon credit has just been created in Brazil and meets ANBIMA’s suggestions.

ENVIRONMENTAL REGULATION:

MATO GROSSO DO SUL

Environmental control system and the roadmap for the pork farming self-monitoring plan

On December 30, 2024, the Mato Grosso do Sul Environment Institute (“IMASUL”) published IMASUL Ordinance No. 1.506/2024, which establishes minimum criteria for the Environmental Control System (SCA) and the roadmap for the Pork Farming Self-Monitoring Plan to comply with state environmental licensing.

The regulation defines the components and minimum criteria to be used for an ECS aimed at controlling liquid effluents and/or solid waste generated by pork farming activities. It also provides specifications for a self-monitoring plan for pork farms, defining the indicators, standards, and frequency required for environmental monitoring of pork farming activities. In addition, the regulation aims to indicate how the results are to be delivered.

The following types of monitoring are required for the activity:

• soil monitoring;
• liquid effluent monitoring; and
• monitoring of sludge and solid waste from the separator.

Businesses that already have environmental licenses issued under IMASUL Ordinance No. 1,343/2023 must comply with the new roadmap.

RORAIMA

Law regulates aquaculture in the state of Roraima

On December 16, 2024, the Legislative Assembly of the State of Roraima published Law No. 2,073/2024, which provides for aquaculture activities (cultivation and/or breeding of organisms whose life cycle, under natural conditions, takes place, in whole or in part, in an aquatic environment) in the state.

Among the regulation’s provisions, the following stand out:

• The following events will be considered environmental irregularities in aquaculture activities:
  • carrying out aquaculture activities without the appropriate license, permit or environmental authorization, or in disagreement with the one obtained;
  • introducing exotic species; and
  • introducing hybrids of alien/exotic species.

• Every aquaculture project must be licensed in accordance with the specifications established for regularization by ordinary procedure, depending on the nature, characteristics, or phase of planning, implementation, and operation.
• Projects classified as small in size are eligible for a simplified environmental licensing, known as the Aquaculture Register. This registration does not apply to aquaculture projects that:
• result from the alternative use of mineral exploration areas for aquaculture activities, in the form of a Degraded Area Recovery Plan (“PRAD”);
• require vegetal suppression in the area to be used; and
• are projects that produce young forms of aquatic organisms.
• An Environmental Monitoring Plan will be required for medium-sized aquaculture enterprises and an Environmental Control Plan for large ones, including, where applicable, an effluent treatment and control mechanism, with a technical project compatible with the existing infrastructure that demonstrably guarantees compliance with the standards established in environmental legislation.

RIO GRANDE DO NORTE

Provisions on the size of agricultural or animal husbandry activities or enterprises in environmental licensing in Conservation Units changed

On December 17, 2024, the Rio Grande do Norte State Environment Council (“CONEMA”) published CONEMA Resolution No. 01/2024, amending previous legislation to regulate the unit quantities for the size of agricultural or animal husbandry activities or ventures in environmental licensing in Conservation Units (“UCs”).

Activities or projects involving agriculture or animal husbandry in environmental licensing in UCs must comply with the following guidelines:

• ensuring that environmental impacts are not significant;
• complying with the management plan of the UC and the restrictions established; and
• complying with the rules established in the Ecological Economic Zoning (EEZ) of the UC.

The resolution authorizes granting a license waiver (“DL”) for agricultural and animal husbandry activities or projects developed within the scope of small properties or rural family possessions located in UCs, subject to the criteria of size and polluting potential.

Waste management

FEDERAL

New law provides for waste, packaging and incentives for the production of bioinputs for agricultural, livestock, aquaculture and forestry use

On December 24, 2024, the National Congress published Federal Law No. 15,070/2024, which provides for the production, import, export, registration, marketing, use, inspection, supervision, research, experimentation, packaging, labeling, advertising, transport, storage, fees, provision of services, disposal of waste and packaging and incentives for the production of bioinputs for agricultural, livestock, aquaculture and forestry use.

The regulation applies to all cultivation systems, including conventional, organic and agro-ecological, as well as all bioinputs used in farming, including biostimulants or growth or performance inhibitors, semiochemicals, biochemicals, phytochemicals, metabolites, organic macromolecules, biological control agents, soil conditioners, biofertilizers and inoculants.

The law states that registration with the federal agricultural defense agency is mandatory for:

biofactories, importers, exporters, and traders of bioinputs or bioinput inoculums, as well as bioinputs or bioinput inoculums produced or imported for commercial purposes. On this point, the regulation clarifies that the registration of bioinput inoculum allows it to be marketed as a product or input for use in a bioinput production unit for its own use, or for use in a research institution, or in the formulation of a commercial product.

Exempt from registration are bioinputs produced exclusively for their personal use, and semiochemical products with an exclusively mechanical action,such as traps, and food attractants for use in insect monitoring whose active ingredients come exclusively from biological fermentation or from food and its residues.

The transport of bioinputs produced for personal use is allowed between establishments of the same economic group, associations or cooperatives of producers; between establishments of the same owner; and between the industrial plant and related producers, as long as there is no act of trading and the rules of the federal agricultural defense agency are followed. This transport can take place within the context of integrated production, rural consortia, agrarian condominiums and the like, for the purposes of storage or use. The material being transported must be accompanied by a document indicating the nature of the product, its destination and the production unit where the bioinput was produced for personal use, except when the transportation takes place within the same property where the bioinput was produced.

As for commercial production, the law states that bioinputs intended exclusively for export will be exempt from registration, which will be replaced by prior notification of production for export.

Regarding the powers established, the law states that:

• the federal agricultural defense agency is responsible for:
  • inspecting the production of bioinputs for commercial purposes;
  • inspecting the import and export of bioinputs; and
  • registering establishments and commercial products.
• the agricultural agencies of the states and the Federal District are responsible for inspecting:
  • trade and transportation within the Federation unit and the use of bioinputs; and
  • the production of bioinputs in bioinput production units for personal use.

As for incentives, the law authorizes the executive branch to use financial, fiscal and tax mechanisms to encourage research, development, production, use and trading of bioinputs for agricultural, livestock, aquaculture and forestry use. These mechanisms will prioritize micro-companies that produce bioinputs for commercial purposes, agricultural cooperatives and family farms that produce bioinputs for personal use.

The National Rural Credit System (SNCR) will be able to apply differentiated interest rates for rural producers and their cooperatives that use bioinputs in their production systems. Specific regulations will govern the means and requirements for proving the use of bioinputs.

Federal law bans imports of solid waste and tailings

On January 07, 2024, the National Congress published Federal Law No. 15,088/2025, which amended the National Solid Waste Policy (Federal Law No. 12,305/2010), prohibiting the import of solid waste and tailings, including paper, paper derivatives, plastic, glass and metal, except in the following cases:

• The import of waste used in the transformation of strategic materials and minerals, including long-fiber paper scraps, and waste metals and metallic materials.
• The import of solid waste derived from Brazilian products previously exported by an importer or manufacturer of auto parts, except tires, for the exclusive purpose of reverse logistics and full recycling, even if classified as hazardous waste.

Regulation of environmental control procedures for waste imports

On December 24, 2024, the Brazilian Institute for the Environment and Renewable Natural Resources (“IBAMA”) published IBAMA Normative Instruction No. 24/2024, which regulates environmental control procedures for the import of waste.

The regulation prohibits the import of the following waste, throughout the Brazilian territory, in any form and for any purpose:

• hazardous waste;
• tailings;
• other waste; and
• used tires.

The normative instruction classifies hazardous waste as:

• those provided for in ABNT NBR 10004:2004;
• those originating from any category of waste stream in part 1 of the annex to the instruction itself, unless they do not have any of the characteristics described in part 3 of its annex;
• those containing constituents of Part 1 of its Annex in such concentration that they exhibit characteristics of Part 3 of the Annex; and
• waste listed in part 8 of its annex.

The normative instruction also establishes an indicative list of controlled waste and hazardous waste, based on the Mercosur Common Nomenclature (NCM).

Controlled waste can only be imported if it originates in a country that is a party to the Basel Convention, as well as if it is imported by an importer of waste for the purpose of recycling, in facilities duly licensed for this purpose, and upon presentation of supporting documents, through an electronic application on the Single Foreign Trade Portal.

Furthermore, the import of controlled waste, such as plastic or electronic waste, must be preceded by compliance with prior informed consent. To this end, the normative instruction provides for the following steps in the procedure for importing these types of waste:

1. IBAMA receives the notification and cross-border waste shipment form submitted by the competent authority of the exporting country, in accordance with the procedures of the Basel Convention;
2. IBAMA carries out an analysis and drafts a response to the Basel Convention Party Countries involved in the cross-border shipment requested;
3. the importer of waste will monitor the proceedings with the competent authorities of each of the Basel Convention Party Countries involved in the cross-border shipment requested;
4. IBAMA issues or denies consent and signs the notification;
5. the importer registers in the Licenses, Permits, Certificates and Other Documents (LPCO) module of the Single Foreign Trade Portal; and
6. IBAMA approves, rejects or inserts a requirement in the Licenses, Permits, Certificates and Other Documents (LPCO) module or import license.

The Normative Instruction entered into force on January 01, 2025.

IBAMA publishes regulation on mercury management

On December 26, 2024, IBAMA published IBAMA Normative Instruction No. 26/2024, establishing requirements and procedures for environmental control of the import, export, trade, transfer, recycling, recovery, use and transport of metallic mercury, and the disposal of mercury waste within the Brazilian territory.

The regulation does not apply to mercury compounds and products with added mercury compounds.

According to the regulation, operations with metallic mercury are controlled through the Metallic Mercury Operations Document (“DOMM”), which attests to the regularity of the operation involving metallic mercury, consisting of a mandatory authorization for the trade of the material, as well as for its transport and storage.

The normative instruction stipulates that importers, exporters, producers and traders must:

• obtain the DOMM before an operation to trade metallic mercury, once the qualification stage has been completed;
• keep the DOMM always near the loads of metallic mercury under their responsibility;
• confirm, in a computerized system, the actual quantity of mercury acquired through a commercial transaction or transfer; and
• report environmental information on the use, storage, loss and environmentally appropriate disposal of mercury in a computerized system.

Buyers and users, for their part, are obliged to:

• require the dealer to issue the DOMM before purchasing metallic mercury;
• carry the DOMM whenever metallic mercury is transported or used, and present it whenever requested by a public authority;
• complete the qualification, reporting the quantity and origin of any quantities of metallic mercury in their possession;
• request the DOMM for the use or environmentally appropriate disposal of any quantities of metallic mercury in their possession;
• report the required information and data to the trader when purchasing metallic mercury;
• confirm, in a computerized system, the actual quantity of mercury purchased;
• report environmental information on the use, storage, loss and environmentally appropriate disposal of mercury in a computerized system; and
• comply with the intended use of the metallic mercury for which the DOMM was issued.

The regulation also establishes specific procedures for importers of metallic mercury; legal entities that carry out laboratory activities and use metallic mercury for research; and exporters of the material.

Finally, the regulation stipulates that the following actions will be considered liable to sanctions:

• lack of confirmation or acceptance or carrying out these operations outside the stipulated deadlines, including import, export, sale, resale, purchase or transfer confirmations made on the computerized system;
• detection of data inconsistencies, by any means, including auditing; and
• failure to declare information on transactions involving mercury.

The normative instruction entered into force on January 02, 2025.

AMAZONAS

Amazonas State Solid Waste Policy regulation published

On December 16, 2024, the Amazonas State Government published Decree No. 50,890/2024, which:

• regulates the State Solid Waste Policy;
• defines the guidelines for implementing and operationalizing post-consumer responsibility; and
• establishes the procedure for incorporating reverse logistics into state environmental licensing.

The decree applies to manufacturers, importers, distributors, product traders, and all other legal entities under public or private law and individuals who carry out actions relating to reverse logistics, integrated management and solid waste management.

The rule determines the incorporation of reverse logistics within the scope of environmental licensing in the state of Amazonas, establishing that all manufacturers, importers, distributors and traders who place post-consumer products and packaging on the Amazonian market, even if they are not subject to state environmental licensing, are obliged to operate the reverse logistics system.

To this end, manufacturers, importers, distributors and traders of post-consumer products and packaging, regardless of whether they have signed up to a term of commitment, sector agreement and/or other equivalent legal instrument with the government, are obliged to provide information about the reverse logistics system to the State Environmental Policy Executive Body by submitting Reverse Logistics Plans (PLRs) and Annual Reverse Logistics Plan Reports (RAPLRs).

The decree stipulates that the PLRs must be submitted to the State Environmental Policy Executive Body within 12 months of the decree’s publication, that is, by December 16, 2025. In addition, once the PLR has been approved, the same agents must submit the RALPR within 12 months, individually or collectively, containing information and results from the implementation of the plan, based on the previous year (January to December).

Finally, the decree states that in the event of non-compliance with the obligations it establishes, the penalties provided for in federal legislation, as well as in state legislation and the respective regulations applicable to it, will apply to signatories, acceding parties and non-signatories.

Biofuels

FEDERAL

Inclusion of independent sugarcane and other biomass producers in RenovaBio

On December 31, 2024, the National Congress published Federal Law No. 15,082/2024, amending the National Biofuels Policy (RenovaBio – Federal Law No. 13,576/2017) to include independent producers of sugarcane and other biomass intended for biofuel production.

The law establishes:

• That the importance of adding value to the raw material destined for biofuel production and to Brazilian biomass is included as the foundation of RenovaBio. It also establishes predictability for the participation of biofuels as a RenovaBio principle, emphasizing the sustainability of the biofuel production chain and security of supply.
• That proof of compliance with the individual target by each fuel distributor will be carried out annually from the retirement of Decarbonization Credits (CBIO) on their property by December 31 of each year.
• That the failure of the fuel distributor to meet the individual target constitutes an environmental crime, and may generate a fine of up to BRL 500,000, proportional to the amount of CBIO that has not been proven to have been acquired and retrieved (the proportionality of the fine will take as a reference price the highest average monthly price of CBIO observed during the period set for meeting the respective individual target).

In addition, the law establishes a ban on marketing any fuel whose distributor is not meeting its individual target, as well as the inclusion of its name on a list of sanctions to be published and kept up to date by the ANP, in addition to a possible fine of between BRL 100,000 and BRL 500 million.

For farmers, failure to pay the producer’s share of sugar cane destined for biofuel production will subject the biofuel producer to a fine (from BRL 100,000 to BRL 50 million) proportional to the amount of CBIO that has not been paid.

Producers of sugar cane intended for biofuel production who are eligible with standard or primary data will be entitled to a share in the revenues from trading CBIO issued and traded from the biomass they deliver.

Sugarcane producers producing biofuels must pay their share by the month after the harvest in which the CBIOs were issued.

The regulation will enter into force on March 31, 2025.

Climate change

FEDERAL

Compulsory annual greenhouse gas emission reduction targets set for fuel marketing

On December 19, 2025, the National Energy Policy Council (“CNPE”) published CNPE Resolution No. 14/2024, which defines the compulsory annual targets for reducing greenhouse gas emissions from fuel sales and the respective tolerance intervals, established in CBIO units, taking into account the improvement in the carbon intensity of the Brazilian fuel mix.

Carbon market regulation

On December 12, 2024, President Luiz Inácio Lula da Silva sanctioned Law No. 15,042/2024, which regulates the carbon market in Brazil, creating the Brazilian Greenhouse Gas Emissions Trading System (“SBCE”).

The new law provides for greenhouse gas (“GHG”) emission limits and the trading of assets representing GHG emissions, reductions, or removals – in line with the Brazilian National Policy on Climate Change (“PNMC”), governed by  Federal Law No. 12,187/2009.

Law No. 15,042/2024 determines that the SBCE will operate according to the cap-and-trade system, which regulates GHG emissions by establishing an emissions ceiling for different sectors of the economy, which receive or buy allowances (within this established ceiling). These permits can be traded when, for example, those responsible for the facilities and GHG emission sources (operators) reduce or exceed the established emission limits.

In this case, the operator issuing GHGs below the established limits can sell their permits proportionally to the reduced emissions, while the operator exceeding the limit can purchase them, also proportionally to the amount emitted in excess.

Federal Law No. 15,042/2024 frames activity operators within the new obligations provided towards reducing or offsetting GHG emissions, without distinguishing sectors (except for primary agribusiness production). The measures to be complied with by these operators vary according to the amount of annual emissions, specifically:

• More than 10 thousand tCO2e/year: requires compliance with reporting obligations.
• More than 10 thousand tCO2e/year and up to 25 thousand tCO2e/year: requires submission, to the managing body of the SBCE, of a plan for monitoring emissions and annual reports on GHG emissions and removals.
• More than 25 thousand tCO2e/year: requires submission of annual reports on regular compliance with obligations, in addition to the obligations mentioned above.

The regulation divided the SBCE into the following phases:

• Phase I: 12-month term, extendable for another 12 months, for publishing Federal Law No. 15,042/2024, counted from the entry into force of this regulation.
• Phase II: One-year term for implementing instruments aimed at reporting emissions by operators.
• Phase III: Two-year term, in which operators will be subject only to the duty to submit a monitoring plan and report on GHG emissions and removals to the SBCE’s managing body.
• Phase IV: Effectiveness of the first Brazilian National Allocation Plan, including the unencumbered distribution of Brazilian Emissions Quotas (“CBEs”), and the implementation of the SBCE’s asset market.
• Phase V: Full SBCE implementation, by the end of the first Brazilian National Allocation Plan.

Operators issuing GHGs above the authorized ceiling must purchase CBEs or Certificates of Verified Emissions Reduction or Removal (“CRVEs”).

The emission ceilings have not yet been defined, but should be provided for in the National Allocation Plan.

Regarding the voluntary carbon market Law No. 15,042/2024 introduced important regulations, such as the possibility of integrated operations with the regulated system. Thus, carbon credits arising from the voluntary market can migrate to the SBCE, provided that they meet specific criteria.

The regulation also addresses the method of taxing assets (CBEs and CRVEs) and carbon credits. It also provides new possibilities for generating carbon credits in Permanent Preservation Areas, Legal Reserves, and Conservation Units.

As for the International Transfer of Mitigation Results (ITMO) Law No. 15,042/2024 assigns authorization powers to the designated national authority. However, adjustments will be needed in the national emission inventory, including that CRVEs must be tracked by the SBCE. Further definitions of such transfers will depend on a regulation to be established by the Interministerial Committee on Climate Change (CIM), taking into account the multilateral regime on climate change and the international commitments made by Brazil.

Water Resources

FEDERAL

Regulation of the use of water resources within the Federal Government’s domain

On December 27, 2024, the National Water and Basic Sanitation Agency (“ANA”) published ANA Resolution No. 236/2024, providing for the use of water resources within the Federal Government’s domain.

Among other measures, the resolution regulates various aspects and criteria relating to bodies of water within the Federal Government’s domain, such as:

• the procedures and criteria for requests for regularization of water use and criteria for their analysis;
  • the conditions for reviewing and suspending licenses;
  • the classification of the level of risk of economic activities subject to regularization (into levels I, II and III, depending on the criteria determined by the regulation);
  • the criteria for defining uses of water resources considered insignificant and interferences not subject to licensing; and
  • the obligations of users of water resources.

The regulation also states that the following uses of water from bodies of water within the Federal Government’s domain are subject to regularization:

• abstractions and derivations for final consumption, production process input or mineral transportation;
• effluent discharges for the purposes of dilution, transportation or final disposal;
• aquaculture in net-tanks;
• the use of hydroelectric potential; and
• accumulations of water volume that alter the flow or level systems.

Concerning agribusiness, the resolution establishes that inactivity verification procedures will be adopted at the ANA’s discretion for irrigation purposes and, preferably, in basins or water systems that:

• present water impairment of more than 70% in the most critical month;
• present a conflict over the use of water resources; or
• are indicated in the ANA’s strategic planning or multi-annual inspection plan.

ANA regulates inspection of the use of water resources, safety of dams, provision of public irrigation services and raw water supply in bodies of water within the Federal Government’s domain

On December 20, 2024, the National Water and Sanitation Agency (ANA) published ANA Resolution No. 231/2024, establishing procedures for monitoring the use of water resources, the safety of dams and the provision of public irrigation services, if under concession, and raw water supply in bodies of water within the Federal Government’s domain.

The regulation defines raw water supply as “the action of transporting water taken from a body of water through channels, pipes or other structures for use in a location other than its origin, including reaching another river basin”.

According to the resolution, the inspection activity may be motivated by: field inspections; complaints; data contained in water resources information systems; data, reports and other pertinent documents declared by dam users or businesses; assessment of compliance with ANA normative acts; and information and data obtained by a company or professional hired or accredited by the ANA, or by a specific institution through a cooperation agreement, covenant or similar instrument.

The regulation clarifies that the purpose of dam safety inspections is to guarantee compliance with safety standards, in order to reduce the possibility of an accident or disaster and minimize its consequences, by evaluating and controlling compliance with the requirements established in the current regulations governing the National Dam Safety Policy (“PNSB”) or in other ANA instruments.

As for the inspection instruments, the ANA determines that the following are applicable:

• notification, which will be used to request the presentation of documentation and information necessary to analyze the regularity of the use of water resources or dams;
• infraction notice, which will be issued when an irregularity is found;
• term of precautionary interdiction, which may be issued as a motivated preventive measure;
• term of seizure and deposit, which will be drawn up when it is necessary to seize goods to guarantee the interruption of use or cease the practice of infringement;
• use monitoring report, the purpose of which is to allow monitoring of the use of water resources;
• report on compliance with conditions, which will be requested to prove compliance with grant conditions and must be drawn up by the grantee; and
• commitment protocol (PC), through which the ANA and the user, including public service providers, or the dam developer establish obligations to be carried out and the necessary deadlines for correcting irregularities.

The resolution also presents various infractions, classifying them as light, medium, serious, and extremely serious and describing their respective penalties. Simple fines for infractions related to the use of water resources, including the provision of public services, range from BRL 100.00 to BRL 50 million. Fines relating to dam safety are expected to be between BRL 2 and BRL 1 billion.

The regulation entered into force on January 01, 2025.

RIO GRANDE DO SUL

Regulation waives grant and authorization for desilting to tackle state of public calamity in Rio Grande do Sul

On January 06, 2025, the State Secretary for the Environment and Infrastructure (“SEMA/RS”) and the Henrique Luis Roessler State Foundation for Environmental Protection (“FEPAM”) published SEMA/FEPAM Normative Instruction No. 01/2025, determining the waiver of grants and authorizing, on an exceptional and temporary basis, the desilting of riverbeds and watercourses to tackle the state of public calamity, limited to the municipalities listed in State Decree No. 57.646/2024.

Applications to the Rio Grande do Sul Water Grant System (“SIOUT RS”) must be carried out by April 06, 2025.

The regulation will remain in force until March 10, 2025.

MAPA – MINISTRY OF AGRICULTURE AND LIVESTOCK REGULATION:

Bioinputs Regulatory Framework enters into force

On December 24, 2024, the Bioinputs Regulatory Framework was published (Law No. 15,070/24, or the “Bioinputs Law”), which regulates the production, import, export, registration, marketing, use, inspection, supervision, research, experimentation, packaging, labeling, advertising, transportation, storage, fees, provision of services, disposal of waste and packaging and incentives for the production of bioinputs for agricultural, livestock, aquaculture and forestry use.

The President of the Republic did not veto the text, which was originally Bill (PL) No. 658/2021, by representative Zé Vitor (PL-MG), approved by the House of Representatives and the Senate.

Bio-inputs are natural products (such as microorganisms and plant extracts) used in agriculture and livestock farming to replace other types of chemical products.

The new law seeks to increase the legal certainty needed for farmers to produce bioinputs in a safe and regulated manner. The law’s rules will apply to all cultivation systems, including conventional, organic, and agroecological.

Check out the highlights of the new law at: Bioinputs Regulatory Frameworks enters into force in Brazil

MAPA updates procedures for accrediting laboratories

The recent MAPA Ordinance No. 747/24 establishes new criteria and requirements for the accreditation and inspection of laboratories by MAPA.

This ordinance is highly important for the agricultural sector, as it aims to ensure the quality and reliability of the laboratory services provided, which are essential for food safety and the competitiveness of Brazilian agribusiness.

The ordinance entered into force on January 02, 2025, and fully repealed the previous regulation on the subject, Normative Instruction No. 57/13.

The ordinance aims to modernize the standards for accrediting and inspecting laboratories that provide services for official Agricultural Defense actions in Brazil. It also adapts procedures in accordance with Law No. 14,515/2022 (the Self-Control Law) and establishes biosafety and protection criteria, through which MAPA should demand more adequate management of biological risks by laboratories.

Accreditation processes that have not been granted by January 02, 2025 will be dismissed, while accreditations issued under IN No. 57/13 will remain valid as follows:

• Areas of activity for products of animal origin, products of plant origin, beverages, wines and vinegars, and animal feed: 365 days or when the accreditation notices for these areas are approved, whichever comes first.
• Animal diagnostic areas: 545 days or when the accreditation notices for these areas are approved, whichever comes first.
• Other areas of activity: 720 days or when the accreditation notices are approved, whichever comes first.

MAPA updates rules and procedures for the manufacture of animal feed products with veterinary medicines

Published on January 17, 2025, MAPA Ordinance No. 1231/25 amends SDA Ordinance No. 798/2023, which provides for the minimum criteria and procedures for the manufacture, transfer of ownership, possession or detention and use of products intended for animal feed with medicines for veterinary use.

According to the new wording of Article 8 of Ordinance 798/2023, licensed medicines can only be used in accordance with the administration periods and animal species and categories approved by MAPA, in addition to the doses already approved.

Ordinance No. 798/2023 prohibits the marketing of intermediate medicinal products to traders in products for veterinary use and amends provisions on control monitoring and verification to determine whether a control measure has been operated as expected.

In addition, veterinarians who prescribe doses or periods of administration other than those indicated on the package leaflet must notify the Department for the Inspection of Products of Animal Origin and provide justification.

MAPA updates analytical parameters for fruit juice and pulp and additional requirements for identity and quality standards

Published on January 17, 2025, MAPA Ordinance No. 1230/25 amends Annex I and Annex II of SDA Normative Instruction No. 37/18, which establishes the analytical parameters for fruit juice and pulp and the list of fruits and other complementary requirements for identity and quality standards.

REAL ESTATE REGULATION:

New STF decision allows fiduciary sale by private instrument

In a recent decision, published on December 13, 2024, the Federal Supreme Court (“STF”) ruled that it is possible to create a fiduciary sale over real estate through a private instrument, with the force of a public deed.

The decision was rendered in Writ of Mandamus MS No. 39.930, contrary to Rulings No. 172, 175 and 177 of the National Council of Justice (“CNJ”), which allowed the establishment of fiduciary sale of real estate by private instrument to be carried out only by entities authorized to operate within the scope of the Real Estate Financial System (“SFI”), the Housing Financial System (“SFH”), including credit cooperatives or real estate consortium administrators, as well as entities subject to regulation by the CVM and the Central Bank (“Bacen”).

Although the provisions mentioned above are currently suspended, they are still the subject of various discussions and serve as the basis for real estate registry offices’ refusal to proceed with the registration of fiduciary sales of real estate instituted by private instrument.

In this regard, Justice Gilmar Mendes’ decision is interesting for the real estate sector as it reinforces the understanding of article 38 of Law No. 9,514/97, which allows fiduciary sales to be formalized by private instrument, provided that the legal requirements are met, as well as establishing that the limitations of the provisions issued by the CNJ went beyond the limits of the legislation and the role of the Real Estate Registry official.

Thus, despite the fact that this was a decision in a private action, it is important to follow the unfolding of the matter in order to assess the possible simplification of the formalization of fiduciary sale of real estate or the requirement of a deed for the constitution of this guarantee.

CNJ ruling enables unavailability of properties with specific value of debt under execution

Ruling No. 188, of December 04, 2024, issued by the National Council of Justice (“CNJ”), brought about important changes in the area of asset unavailability by regulating the operation of the National Property Unavailability Center (“CNIB 2.0”), which aimed at registering orders for the unavailability of specific property or assets without distinction and orders for the cancellation of unavailability.

Among the features of CNIB 2.0, the key novelty was the possibility of making only the properties designated by the court decision relating to the debt unavailable, not covering all of the debtor’s assets, which makes the process fairer and more efficient, avoiding the unavailability of assets that are not directly related to the debt.

This novelty allows only properties directly related to the debt to be affected, protecting other assets of the debtor not involved in the dispute. It reduces the impact of enforcement on the debtor’s assets and provides greater legal certainty by establishing clear limits on the unavailability of properties.

In addition to this important innovation, Ruling No. 188 also:

• established the need for a national standardization of the electronic exchange of structured data and the powers of the Judiciary to supervise notarial and registration services;
• established the need to publicize the imposition of unavailability of properties; and
• facilitated the process of canceling the unavailability of properties, especially for those who are beneficiaries of Free Justice, in which case the registration of the cancellation must be carried out by the real estate registry officer at no cost to the debtors.

Draft legislative decree cancels creation of Terra da Gente Program

On December 11, 2024, the Agriculture and Agrarian Reform Commission approved the proposal for Legislative Decree No. 198, 2024, which aims to suspend the effects of Decree No. 11.995/2024, which established the “Terra da Gente Program” (Land of the People Program) and provides for the incorporation of rural properties within the scope of the National Agrarian Reform Policy.

According to the justification presented in the bill, Decree No. 11,995/2024 interferes with private property, pushing for the incorporation of rural properties without due legal process and without due compensation to the owners, going beyond the limits of current legislation and violating the constitutional rights of rural landowners.

Moreover, the justification indicates that this decree also created an institutional conflict by seeking to unilaterally regulate land reform, violating principles of separation of powers outlined in the Federal Constitution. Furthermore, by weakening protections established in previous legislation, it also contradicts the government’s policy of strengthening legal certainty and discouraging practices of unauthorized land occupation.

Thus, if the bill is approved, with the respective suspension of the effects of Decree No. 11,995/2024, it will be beneficial for rural producers, reinforcing legal certainty and the protection of private property, while observing the exclusive legislative powers of the National Congress.

The bill is currently awaiting the appointment of a rapporteur in the Constitution, Justice and Citizenship Committee (“CCJ”) and must be approved by the House of Representatives and the Senate.

Bill provides for the possibility of using rural property in the interest of agrarian reform to pay off debts owed to the Federal Government

On November 27, 2024, the Agriculture, Livestock, Supply and Rural Development Committee (“CAPADR”) approved Bill No. 3,506/23, which establishes the rules for the payment of outstanding debts owed to the Federal Government, through the delivery of rural property of interest to the agrarian reform.

The proposal, currently in progress in the House of Representatives, aims to include an article in Law No. 13,259/16, which addresses the payment in kind of real estate as a way of extinguishing the tax credit registered as an outstanding debt of the Federal Government, making it possible for rural properties in the interest of agrarian reform to be given in payment to settle debts owed to the Federal Government.

The bill stipulates that the rural property given in payment of the debt must be free and clear of any encumbrances and that it will be assessed by the National Institute for Colonization and Agrarian Reform (“INCRA”), which will decide on the feasibility of allocating it to beneficiaries of the agrarian reform program.

In addition, the bill establishes that, if the value attributed to the property is higher than the amount of the debt registered with the Federal Government, the difference can be paid through a precatory system, in compliance with the legislation. If the debt is under judicial discussion, the debtor will have to give up the legal actions that concern the debts that will be paid off, and waive any allegations of law on which the legal actions are based.

If approved, the bill will have a positive impact on the real estate market, by allowing properties that were idle or underused to be used to pay off debts owed to the Federal Government.

The bill is currently awaiting the appointment of a rapporteur in the Finance and Taxation Committee and the Constitution, Justice and Citizenship Committee. To be converted into law, the bill needs to be approved by both the House of Representatives and the Senate.

Bill extends the deadline for registering land parcels.

On November 13, 2024, the House of Representatives’ Urban Development Committee approved the proposal for Bill No. 1,260/2024, which aims to amend Law No. 6,766/1979 (“Urban Land Parceling Law”), in order to establish a new deadline for the real estate registration of the decree approving the subdivision or dismemberment of land.

Currently, the deadline for registering land parcels is 180 days, in accordance with article 18 of the Urban Land Parceling Law. The bill envisages changing the deadline for the land developer to register a land parcel or subdivision with the real estate registry office to 360 days.

This registration is required after the city council approves the urban subdivision project and any failure to meet the deadline will result in the expiration of the approval. Only after registration is complete can plots be sold to third parties.

Therefore, if the bill is approved, extending the deadline will provide greater flexibility for allotment developers, who will have more time to comply with the legal requirements and register their allotment or subdivision with the land registry. This will contribute to legal certainty, ensuring that all stages of the process are completed properly and within a reasonable timeframe, making it easier to sell plots to third parties.

The bill is currently awaiting the appointment of a rapporteur in the Finance and Taxation Committee and the Constitution, Justice and Citizenship Committee. To be converted into law, the bill needs to be approved by both the House of Representatives and the Senate.