Brazilian government creates incentive programme to encourage biomethane production for transport
By Jose Secco - 27th April 2022
IVECO's biomethane fuelled tractor unit
Brazil - In March, the Brazilian Government in capitol city of Brasília, agreed the launch of a Methane Reduction Programme under an agreement called the Special Regime of Incentives for the Development of Infrastructure (REIDI) to encourage production and sustainable use of biomethane in Brazil. The decree is aimed at implementing government plans to reduce the country’s dependence on fossil fuels and to reduce emissions of pollutants from such fuels.
Biomethane is a sustainable fuel that can be used in place of natural gas in vehicles and other fossil fuel use such as diesel and petrol. The programme sets out to use urban and rural waste to produce biomethane by offering funding and methane credits for projects in the segment. Funding is through the provision of tax incentives (exempts PIS1/Confins2) associated with the acquisition of products and services (such as machinery, equipment and construction material), needed to produce biogas and usable biomethane in transportation.
