Thursday, 24 October 2024.
Today we continue the article started yesterday, where we basically describe the 4 types of ecosystem services defined in Brazilian Law No. 14,119 of January 2021 on Payment for Environmental Services (PSA).
Regarding those services, according to the law, the transaction is voluntary in nature and may be remunerated in various ways: direct (monetary or otherwise); providing social improvements to rural and urban communities; compensation linked to a certificate for reducing emissions from deforestation and degradation; lending; green bonds and Environmental Reserve Quota established by the Forestal Code.
Once the eligibility criteria are met, the environmental services provider can be either an individual or a legal entity, public or private, family or community group.
There is a relevant “but”, though: a few years after its entry into force, the law has not yet been regulated.
Despite efforts such as the Coalizão Brasil Clima, Florestas e Agricultura, which worked on drafting the suggested regulation of Law 14,119/2021, which you can download below (in Portuguese).
Besides delaying relevant actions that could mitigate the growing and increasingly extreme climate problems faced by populations, its non-regulation leads to other uncertainties, such as:
legal: see what a member of UNIDROIT warned last week;
tax: incidence of all IRPJ, CSLL, PIS and COFINS taxes; and
accounting: let's see how Technical Guidance OCPC 10 – Decarbonization Credits will cover the PSA theme.
All this not to mention the possible relationship with CBIOS / RenovaBio, in addition to the pending approval of the Carbon Bill.
Click on the image below to read (in Portuguese) more about it on the Environmental Education Portal mentioned at the beginning of yesterday's article.
