Low-carbon hydrogen: Decree No. 13,096/2026 implements Brazil’s legal framework
Key takeaways • Decree No. 13,096 of August 12, 2026, published in the Federal Official Gazette (DOU) on August 13, 2026 and effective on publication, implements Law No. 14,948/2024 (legal framework and Rehidro) and Law No. 14,990/2024 (PHBC). • The National Agency of Petroleum, Natural Gas and Biofuels (ANP) will authorize the production of hydrogen, its derivatives and carriers; facilities already operating have two years to apply. • The Brazilian Hydrogen Certification System (SBCH2) receives its governance and accounting rules; until December 31, 2030, certification may count emissions only up to the production gate. • Rehidro suspends PIS/COFINS and PIS/COFINS-Import on goods, construction materials and services for approved projects, for contracts signed between qualification and December 31, 2026. • PHBC tax credits may be granted from 2030 to 2034 through a competitive process run by the Ministry of Finance. |
1. Background
Brazil’s low-carbon hydrogen framework consists of Law No. 14,948 of August 2, 2024, which established the National Low-Carbon Hydrogen Policy and the Special Incentive Regime for Low-Carbon Hydrogen Production (Rehidro), and Law No. 14,990 of September 27, 2024, which established the Low-Carbon Hydrogen Development Program (PHBC). Under the law, hydrogen qualifies as low-carbon if its life-cycle emissions intensity does not exceed 7 kgCO2eq per kg of hydrogen.
About two years later, Decree No. 13,096/2026 sets out the policy governance, the licensing of activities, the certification system and the operation of the incentives. The Decree also revokes Decree No. 10,542/2020.
2. Policy governance
The Management Committee of the National Hydrogen Program (Coges-PNH2), coordinated by the Ministry of Mines and Energy (MME), is confirmed as the body supporting the National Energy Policy Council (CNPE). Its duties include setting guidelines for Rehidro and PHBC, proposing incentive targets to the CNPE, monitoring the tax benefits and proposing guidelines for the exploration and production of natural hydrogen.
The policy must be aligned with other emissions-reduction and energy-transition policies, including the National Energy Transition Policy and RenovaBio. The Brazilian Hydrogen Portal, maintained by the Energy Research Company (EPE), will centralize program information.
3. Authorization and regulation of activities
The ANP will authorize the production of hydrogen, its derivatives and carriers. No authorization is required for (i) R&D&I projects or (ii) production for own consumption, use as an industrial input or non-energy uses, although the activity must still be registered. The ANP may create further exemptions, considering production volume in particular, and may narrow exemption (ii). Exempt projects may still access policy instruments, provided the R&D&I project targets low-carbon hydrogen or the hydrogen produced is certified.
Production facilities already operating when the Decree was published must apply for authorization within two years.
The ANP must respect the powers of the water agency (ANA), the electricity regulator (ANEEL) and the land, waterway and civil aviation transport agencies (ANTT, ANTAQ and ANAC); the agencies may issue joint rules. The ANP will also regulate accident risk management instruments and emergency response plans.
4. Natural hydrogen
The exploration and production of natural hydrogen will require concession contracts. The ANP will regulate the procedure, decide whether prior bidding is required and may adopt a simplified procedure outside sedimentary basins. Within sedimentary basins, natural hydrogen may be included in oil and gas bidding rounds, and existing E&P contracts may be amended at the operator’s request to cover it. The ANP may require performance guarantees.
5. Brazilian Hydrogen Certification System (SBCH2)
Institution | Role |
Coges-PNH2 | Competent authority |
ANP | Regulatory authority |
Inmetro | Accreditation body for certification companies |
CCEE (Electric Energy Trading Chamber) | Registry manager |
Certification determines the greenhouse gas emissions intensity based on life-cycle analysis, reported in kgCO2eq/kgH2. The system boundary runs from raw material extraction to the consumption gate; until December 31, 2030, it may be counted only to the production gate. Until the same date, emissions from the capital goods of new projects must be reported separately.
Certificates must be registered in the national database to ensure traceability and prevent double counting, and the party requesting registration pays for it. Until accreditation for the specific scope is available, the ANP may qualify and appoint certification companies accredited for a similar scope.
6. Rehidro
Rehidro suspends PIS/PASEP and COFINS (including on imports) on machinery, equipment, construction materials, services and rentals for the fixed assets of approved projects. The suspension covers contracts signed between the qualification date and December 31, 2026, and becomes a zero rate once the conditions are met, including SBCH2 certification of the hydrogen. If the conditions are not met, the taxes become due with penalties and interest. Approved projects also count as priority projects for incentivized infrastructure debentures (Law No. 12,431/2011).
Hydrogen producers may be qualified. Storage, transport, distribution and trading companies, renewable power generators and producers of biofuels for hydrogen production may be co-qualified. The process has two stages: preliminary qualification (MME ordinance, with review by the ANP) and final qualification (Federal Revenue Service).
Main commitments:
• minimum investment of 1% of the total project value in sustainable energy-transition projects in Brazil, within five years;
• minimum investment of 1% in R&D&I, also within five years (for preliminary qualification);
• minimum local content of 15% (electrolysis: production systems and electrolyzers), 40% (other routes) and 60% (distribution and transport materials and equipment, and services), with a waiver available where no domestic equivalent exists;
• for co-qualified power generators or biofuel producers, a supply contract with the hydrogen producer of at least ten years (for biofuels, covering at least 30% of capacity).
7. PHBC
PHBC tax credits may be granted from 2030 to 2034 through a competitive process run by the Ministry of Finance, with the tender documents first put to public consultation. Producers of low-carbon hydrogen and its derivatives, and companies using hydrogen in their own industrial processes, may take part. Priority goes to own-consumption projects in the fertilizer, steel, cement, chemical, petrochemical and heavy transport sectors.
Bidders must post guarantees for the public session, and winners must post guarantees of up to 10% of the credit awarded. Non-performance exposes the beneficiary to a fine of up to 20% of the credit, except in cases of acts of God, force majeure or acts of government. Recognition of the credit depends on maintaining SBCH2 certification.
8. Next steps to be considered
• Assess whether existing facilities must apply for ANP authorization within the two-year period or fall within an exemption.
• To use Rehidro, plan qualification and the signing of procurement contracts now, given the December 31, 2026 cut-off.
• Structure EPC, supply and PPA contracts with clauses on local content, SBCH2 certification and allocation of the risk of losing the benefit.
• Monitor the implementing rules from the ANP, MME, Federal Revenue Service, Inmetro and Ministry of Finance, including the future PHBC tender.
How we can help
Our energy core team is closely monitoring the implementation of Decree No. 13,096/2026 and the implementing rules to be issued by the ANP, MME, Federal Revenue Service, Inmetro and Ministry of Finance, and we remain available to help assess project eligibility, obtain authorizations, apply for Rehidro qualification, prepare for the PHBC and structure contracts across the hydrogen value chain.
For more information, do not hesitate to reach out to us.
