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Understand How the Green Passport Bill Aims to Propose Tax Incentives for Companies That Adopt Renewable Energy, Stimulating the Use of Clean Energy, Sustainability, and the Creation of Green Jobs in Brazil.
A new bill under consideration in the Chamber of Deputies proposes a public policy that seeks to integrate economic development, sustainability, and encouragement of renewable source usage. According to a report published by Congresso em Foco on February 8, the Bill No. 1,338/25, known as the Green Passport Bill, aims to create a national program of tax incentives for companies that use 100% renewable energy in their operations in Brazil.
The initiative focuses on expanding the use of clean energy, reducing environmental impacts, and the potential to stimulate the creation of green jobs. From the beginning, the proposal differentiates itself by relying on economic incentives as a tool for transformation, rather than imposing new regulatory obligations on companies. The project places sustainability at the center of economic strategy.
Green Passport Bill as a Stimulus for Renewable Energy
Authored by Deputy Marx Beltrão (PP-AL), the Green Passport Bill was presented with the goal of stimulating Brazil’s transition to a low-carbon economy. According to the parliamentarian, the intensive use of renewable energy is essential to ensure economic growth while preserving the environment.
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The proposal is based on the principle that the adoption of clean energy can be accelerated when the state creates favorable conditions for the productive sector. By offering tax benefits to companies that demonstrate sustainable practices, the project aims to encourage business decisions aligned with current climate challenges. It is a policy based on stimulation, not penalization.
Criteria for Joining the Green Passport and Using Clean Energy
To participate in the program established by the Green Passport Bill, interested companies must demonstrate, through technical reports, that all their activities are fully supplied by renewable energy. This proof is an essential condition for accessing the benefits provided in the proposal.
The project text defines clean energy as solar, wind, biomass, and geothermal sources. It also considers eligible sources energy derived from oceans and hydropower, as long as it is generated by small plants or low environmental impact plants. This definition seeks to balance energy expansion with environmental responsibility.
By requiring the exclusive use of these sources, the project stimulates direct investments in renewable energy infrastructure, strengthening the national energy matrix and reducing dependence on polluting sources. Clean energy becomes a criterion for accessing economic advantages.
Projected Tax Benefits in the Green Passport Bill
The Green Passport Bill provides a comprehensive set of tax incentives aimed at companies that join the program. Among the benefits is the exemption from ICMS on electricity consumed, which directly reduces the operational costs of companies that use renewable energy.
The proposal also establishes the exemption from IPI on products manufactured by participating companies, with the exception of goods classified as luxury or polluting. Additionally, the project provides for a 50% reduction of the Corporate Income Tax levied on operational profit in the year following joining the program.
Another relevant incentive is a 25% reduction in PIS and Cofins through presumed credit, which broadens the financial margin of companies committed to using clean energy. The text also allows the full deduction of investments made in renewable energy from the base calculation of the Social Contribution on Net Profit.
Green Jobs and the Economic Effects of Renewable Energy
According to the author of the proposal, the Green Passport Bill has the potential to boost the creation of green jobs, especially in sectors related to generation, management, and innovation in renewable energy. The expansion of clean source usage requires qualified professionals, stimulating new job opportunities.
In addition to the direct impact on job creation, strengthening the clean energy sector tends to stimulate regional production chains. Regions with high solar, wind, or biomass potential may benefit from new investments, contributing to local economic development. Environmental policy also becomes a development policy.
Clean Energy as a Competitive Advantage in Public Bids
Another strategic aspect of the Green Passport Bill is the provision for priority in public bids for companies participating in the program. The text establishes that organizations that prove the exclusive use of renewable energy will have preference in contracts awarded by federal, state, and municipal governments.
This measure broadens the reach of the proposal by turning the adoption of clean energy into a competitive differentiator, especially for companies that maintain frequent relationships with the public sector. Consequently, sustainability ceases to be merely an institutional commitment and begins to directly influence market decisions.
National Committee on Clean and Sustainable Energy
The project also provides for the creation of the National Committee on Clean and Sustainable Energy, an agency responsible for monitoring the economic and environmental impacts of the proposed policy. This committee will play a fundamental role in monitoring the effectiveness of the incentives and evaluating the results achieved.
Among its duties are monitoring the effects of the program on the use of renewable energy, analyzing environmental impacts, and proposing adjustments that may enhance the public policy over time. The committee also contributes to ensuring transparency and governance of the Green Passport Bill.
Legislative Progress of the Bill in the National Congress
Currently, the Green Passport Bill is being processed in a conclusive manner in the Chamber of Deputies. The proposal will be analyzed by the committees on Mines and Energy, Environment and Sustainable Development, Finance and Taxation, and Constitution, Justice, and Citizenship.
For the bill to be enacted into law, it will still require the approval of both the Chamber of Deputies and the Federal Senate. The full text of the proposal is available for public consultation, ensuring transparency in the legislative process.
What the Green Passport Signals for the Future of Energy in Brazil
The Green Passport Bill could represent a significant shift in how Brazil articulates fiscal policy, sustainability, and economic development. By encouraging the exclusive use of renewable energy, the proposal strengthens the energy transition and amplifies the role of clean energy in business strategy.
If approved, the bill could consolidate a new model of incentive for clean energy, aligning economic growth, environmental responsibility, and the generation of green jobs in the country.
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