Public Hearing Opened on National Circular Economy Plan

In accordance with Federal Decree No. 12,082/2024, which established the National Circular Economy Strategy (which we explored in a July 2024 Legal Update), a public hearing has been opened for the development of the National Circular Economy Plan. This plan aims to regulate and guide strategic actions in the transition from the current linear economic model (natural resource extraction, production, consumption, and disposal) to a more sustainable, innovative, and competitive model. It seeks to promote circularity in production and consumption, reduce waste, optimize resource use, and drive technological and industrial innovation. The construction of this plan was based on 5 axes, as set out below.

Axis 1 is the creation of a regulatory and institutional environment conducive to the advancement of the circular economy, with the main objectives of: (i) defining quantifiable targets, standards, and indicators to effectively monitor circularity; (ii) developing and strengthening markets for reusable, refurbished, and recycled products; and (iii) promoting coordination and alignment with other public policies and international commitments.

Axis 2 aims to promote innovation, culture, education, and the development of skills for the reduction, reuse, and promotion of circular production redesign, with the main objectives of: (i) creating training programs to help companies adopt circular production practices, as well as encouraging the training and updating of workers' skills; (ii) promoting research, development, and innovation to advance circularity; (iii) promoting cultural and environmental education, and encouraging critical and innovative thinking focused on circularity; (iv) promoting sustainable industrial, mineral, artisanal, extractive, agricultural, and agro-forestry production, including related distribution, trade, and service processes; and (v) encouraging reuse and extending the life of products.

Axis 3 addresses the reduction of resource use and waste generation, aiming to preserve the value of materials, with the main objectives of: (i) minimizing waste from the product design stage; (ii) encouraging the establishment of recycling facilities across the country; (iii) fostering investments in infrastructure and the use of technologies for the development of the Circular Economy; and (iv) promoting coordination between waste management policies and the Circular Economy.

Axis 4 aims to propose financial instruments to support the Circular Economy, with the main objectives of: (i) proposing innovative and sustainable financial mechanisms to support the implementation and expansion of Circular Economy practices; (ii) encouraging public procurement of circular goods and services; and (iii) proposing appropriate tax treatment to reduce pollution and waste.

Axis 5 focuses on promoting intergovernmental coordination and the involvement of workers within the Circular Economy, with the main objectives of: (i) proposing actions to integrate informal workers into circular value chains; (ii) promoting public policies for collection and sorting, incentives for recycling production and industrial chains, and recognizing recyclable material pickers; and (iii) proposing actions for regional economic development through recycling production chains and circular businesses.

Interested parties may submit contributions until March 19, 2025 through the Participa + Brasil platform.

The Environmental, Climate Change and ESG Practice of Tauil & Chequer Advogados, in association with Mayer Brown, is available for additional information on this topic.