Recyclable Progress: Brazil Ready for a New Level in Recycling

Turning Waste into Opportunities: The New Era of Recycling in Brazil

A greener and more sustainable future is on the horizon for Brazil. With the potential boost from the Recycling Law, the outlook is for promising growth in the recycling sector, which will extend to industry, commerce, cooperatives, and waste pickers.

Cátilo Cândido, president of the Brazilian Association of Aluminum Can Manufacturers (Abralatas), highlights the window of opportunity for advancing recycling in Brazil, catalyzed by the Recycling Incentive Law.

A Dive into the Recycling Law: Benefits and Impacts

Enacted as Law 14.260/21 in 2021, this legislation allows citizens and corporations taxed on actual profits to deduct amounts invested in recycling projects from their Income Tax. With rates that can reach up to 6% for individuals and 1% for companies, there is a clear motivation to invest in sustainability.

The law establishes that recycling projects must be pre-approved by the Ministry of the Environment (MMA) and provides for the formation of support funds for investments in the sector, also managed by the Ministry. In the federal budget proposal for 2023, R$ 299 million is already allocated for these tax deductions.

For Cátilo Cândido, these numbers are significant and should drive the growth of the entire recycling chain in Brazil, with a special emphasis on cooperatives.

“If this law is effectively implemented, it could revolutionize the market, especially for cooperatives and waste pickers. These economic instruments are crucial for elevating recycling to higher and more acceptable levels,” highlights Cândido.

The Road Ahead: Awaiting Regulation

Approved about two years ago, the Law is still awaiting regulation by the Ministry of the Environment for its implementation. The first step was taken in June of this year when the MMA established a committee dedicated to the process of regulating the Law, a move that has generated optimism in the sector.

“The implementation of the Law will lead us to unprecedented progress. It is gratifying to see this agenda advance, improving the living conditions of waste pickers across the country. More than 800,000 professionals will benefit, having more tools for work and access to recycling management solutions. The waste picker wins, society wins, and the country wins,” emphasizes Cátilo.

Federal Deputy Carlos Gomes (Republicanos/RS), author of the Law, underscores the urgency of its implementation. “We need to enable the Law to be put into practice as soon as possible, so that recycling projects can start being submitted and approved by the Ministry of the Environment. The challenges of recycling in Brazil are great and cannot wait any longer,” he stresses.