Environmental – RenovaBio

ENVIRONMENTAL – BIOFUELS POLICY (RENOVABIO): BOOKKEEPING OF DECARBONIZATION CREDITS (CBIOS)

On November 21, 2019, the Ministry of Mines and Energy published Ordinance No. 419 ("Ordinance") on bookkeeping, registration and negotiation of Decarbonization Credits ("CBIOs"), applicable to fuel distributors as a compulsory annual goal to reduce emission of greenhouse gases.

Among the main provisions of the Ordinance, we highlight:

• The bookkeeping of CBIOs shall be subject matter of a specific agreement;
• Possibility to retain CBIO's portfolio management service, ensuring the negotiation powers of such credits on behalf of third parties;
• CBIOs shall be kept by the registry entity in individual accounts, operated through credit and debit;