Green hydrogen has gained prominence on the international stage as a promising solution for the energy transition. Produced from renewable sources, it presents itself as a clean alternative to fossil fuels and an important tool in the fight against climate change.
In Brazil, the topic has been gaining momentum with the advancement of projects, public policies, and regulatory debates. This article presents a general overview of green hydrogen regulation in the country, the main legal milestones, and the challenges for its sustainable development.
What is green hydrogen?
Green hydrogen is a clean energy source obtained from renewable sources, such as solar and wind power. Its main distinguishing feature is the way it is produced, through water electrolysis, a process that separates hydrogen from oxygen using electricity from renewable sources, without emitting polluting gases.
This characteristic distinguishes it from other forms of hydrogen. So-called gray hydrogen, for example, is produced from fossil fuels, such as natural gas, generating large volumes of carbon dioxide. Blue hydrogen, on the other hand, uses the same process, but with techniques for capturing and storing the emitted carbon, which reduces, but does not eliminate, environmental impacts.
Because it is emission-free, green hydrogen has gained prominence in global energy transition strategies and the fight against climate change. It is considered a key component in the decarbonization of sectors that are difficult to electrify, such as heavy industry and long-distance transport.
Furthermore, green hydrogen contributes to energy security by allowing greater independence from fossil fuels and diversification of the energy matrix. Therefore, proper regulation of this energy source is fundamental to ensuring its expansion in a safe, sustainable, and legally sound manner.
Strategic importance for Brazil
Brazil stands out as one of the countries with the greatest potential to lead global green hydrogen (H₂V) production, thanks to a unique combination of natural resources, energy infrastructure, and a strategic geopolitical position.
- Natural competitive advantages: With over 80% of its electricity matrix coming from renewable sources, such as hydroelectric, wind, and solar power, Brazil has a solid foundation for the sustainable production of H₂V. Its extensive territory and diverse climate favor the installation of power plants in different regions, enabling continuous and scalable production.
- Export potential and geopolitical relevance: The growing demand for clean energy in international markets positions Brazil as a strategic supplier of green hydrogen. The European Union, for example, plans to import 10 million tons by 2030, and Brazil is among the countries with the greatest capacity to meet this demand.
- Regional development and industrialization: The H₂V chain represents a concrete development opportunity for several regions. The Northeast has stood out with projects that integrate hydrogen production, job creation, and the establishment of sustainable industrial hubs, promoting inclusion and innovation.
Brazil's consolidation as a leader in green hydrogen production will depend on well-structured public policies, investment in technology and infrastructure, and international coordination that strengthens the country's leading role in the global energy transition.
Ongoing initiatives and public policies
Brazil has made significant progress in structuring public policies aimed at developing green hydrogen, establishing itself as a potential global leader in this emerging sector.
National Hydrogen Program (PNH2)
Established by the National Council for Energy Policy (CNPE) through Resolution No. 6/2022, the PNH2 sets guidelines to strengthen the hydrogen market and industry as an energy vector in Brazil.
The PNH2 Three-Year Work Plan 2023-2025 defines strategic goals, such as:
- Disseminate low-carbon hydrogen pilot plants in all regions of the country by 2025;
- To consolidate Brazil as the most competitive producer of the molecule in the world by 2030;
- Establish low-carbon hydrogen hubs by 2035.
Legal framework for low-carbon hydrogen
Enacted in August 2024, Law No. 14.948/2024 establishes the legal framework for low-carbon hydrogen, setting forth competencies, guidelines, and responsibilities for the National Hydrogen Policy (PNH2).
The legislation aims to create a safe and attractive regulatory environment for investment, promoting the certification and competitiveness of hydrogen produced in the country.
Federal strategy and sectoral programs
The Ministry of Mines and Energy (MME) coordinates the Federal Hydrogen Strategy, which aims to integrate government actions and promote international cooperation.
Furthermore, the Ministry of Mines and Energy (MME), in partnership with the Energy Research Company (EPE), is working on energy transmission planning to enable large-scale hydrogen projects.
State policies and regional hubs
Several Brazilian states have implemented policies to attract investment in green hydrogen, including:
- Ceara: The Pecém Industrial and Port Complex is home to the country's first H₂V hub, with significant investments and international partnerships.
- Piauí: The state has signed agreements to develop green hydrogen projects, leveraging its potential in renewable energy.
- Bahia: Projects in Camaçari aim to produce green ammonia, focusing on export and domestic use.
- Large northern river: These initiatives combine offshore wind and solar energy for H₂V production, with significant investments and job creation.
Existing legal frameworks and regulatory gaps
The regulation of green hydrogen in Brazil has advanced significantly with the enactment of Law No. 14.948/2024, which establishes the legal framework for low-carbon hydrogen. This legislation sets guidelines for the production, marketing, and use of hydrogen, as well as creating mechanisms to incentivize the sector.
Definitions and certifications
The law defines three categories of hydrogen:
- Low-carbon hydrogen: that whose production results in greenhouse gas (GHG) emissions equal to or less than 7 kg of CO₂ per kg of H₂, according to a life cycle analysis, until December 31, 2030.
- Renewable hydrogenProduced from renewable sources such as solar, wind, hydroelectric, biomass, ethanol, biogas, biomethane, landfill gases, and geothermal energy.
- green hydrogen: obtained by electrolysis of water using exclusively renewable energy sources.
Furthermore, the legislation establishes the Brazilian Hydrogen Certification System (SBCH2), which sets out the structure, governance, and competencies for the voluntary certification of hydrogen produced in the country, based on emission intensity.
The role of regulatory agencies
The National Agency of Petroleum, Natural Gas and Biofuels (ANP) is designated as the main regulator of the sector, responsible for authorizing, regulating and overseeing activities related to the production, transportation, storage and marketing of low-carbon hydrogen.
The National Electric Energy Agency (ANEEL) also plays a relevant role, contributing technical information and being able to issue declarations of public utility for electricity transmission and distribution facilities intended for hydrogen production.
Incentive tool
Law No. 14.948/2024 creates the Special Incentive Regime for Low Carbon Hydrogen Production (Rehidro), which provides for the suspension of taxes such as PIS, Cofins, PIS-Importation and Cofins-Importation on the acquisition of goods and services intended for hydrogen projects.
Furthermore, Law No. 14.990/2024 was enacted, establishing the Low Carbon Hydrogen Development Program (PHBC), with a provision of R$ 18,3 billion in tax incentives between 2028 and 2032, aimed at fostering research, development, and innovation in the sector.
regulatory challenges
Among the main regulatory challenges for the advancement of green hydrogen (H₂V) in Brazil, the following stand out:
- Transportation, storage and certification of originThere are still no specific regulations governing these essential stages of the production chain, which compromises legal certainty and hinders the sector's expansion.
- Coordination between regulatory bodiesThe joint action of ANEEL, ANP, IBAMA and other agencies requires clear alignment to avoid overlapping responsibilities and bureaucratic obstacles.
- Balance between innovation and sustainability.It is necessary to encourage technological innovation and market growth without compromising environmental standards and decarbonization goals.
Future perspectives
Brazil has already taken important steps with the creation of the National Low-Carbon Hydrogen Policy (Law No. 14.948/2024) and with the enactment of the Hydrogen Development Program (Law No. 14.990/2024), drawing inspiration from international models such as that of the European Union.
Now, consolidating this regulatory framework will be crucial to attracting sustainable investments and positioning the country as a global leader in the energy transition.
The closing thought
Green hydrogen represents a great opportunity for Brazil to advance in its energy transition, generate jobs, and attract investment. However, for this potential to materialize, it is essential that the country moves forward in creating clear, stable, and well-coordinated regulations.
With a suitable regulatory environment, Brazil can become a global leader in the production and export of clean energy.
Want to delve deeper into this strategic topic? Discover the MBA in Law and Regulation of the Electricity Sector at IDP and prepare yourself to excel in one of the most important sectors of the Brazilian economy.
References
AGÊNCIA GOV. Low-carbon hydrogen bill inaugurates a new industry for Brazil. August 02, 2024. Available at: https://agenciagov.ebc.com.br/noticias/202408/pl-hidrogenio-baixo-carbono-inaugura-nova-industria-brasil.
BEZ, Bianca. Hydrogen hierarchy in Brazil and some of its challenges. Consultor Jurídico, February 19, 2025. Available at: https://www.conjur.com.br/2025-fev-19/hierarquia-do-hidrogenio-no-brasil-e-alguns-de-seus-desafios/.
BRAZIL. Law No. 14.948, of August 4, 2024. Establishes the legal framework for low-carbon hydrogen . Official Gazette of the Union: section 1, Brasília, DF, August 5, 2024. Available at: https://www.planalto.gov.br/ccivil_03/_Ato2023-2026/2024/Lei/L14948.htm.
BRAZIL. Ministry of Finance. Brazil strengthens sustainable development with the new legal framework for low-carbon hydrogen. August 05, 2024. Available at: https://www.gov.br/fazenda/pt-br/assuntos/noticias/2024/agosto/brasil-fortalece-desenvolvimento-sustentavel-com-o-novo-marco-legal-do-hidrogenio-de-baixo-carbono.
BRAZIL. Ministry of Mines and Energy. National Hydrogen Program – PNH2. Available at: https://www.gov.br/mme/pt-br/programa-nacional-do-hidrogenio-1.
BRAZIL. Ministry of Mines and Energy. National Hydrogen Program reinforces Brazil's strategy to lead the energy transition. December 28, 2023. Available at: https://www.gov.br/mme/pt-br/assuntos/noticias/programa-nacional-do-hidrogenio-reforca-estrategia-do-brasil-para-liderar-a-transicao-energetica.
