July 08, 2024
Brazil Publishes Federal Decree Establishing the National Strategy on Circular Economy
Brazil’s federal government has published Federal Decree No. 12,082/2024, establishing the National Strategy on Circular Economy (NSCE), which aims to facilitate the transition from a linear production model to a circular economy, with the ultimate goal of promoting efficient use of natural resources and sustainable practices across the production chain.
According to the decree, a “circular economy” is an economic system that seeks to sustain the circular flow of resources and integrates economic activities to a circular resource management system by adding to, retaining, or rehabilitating solid waste economic values, grounded in the principles of waste prevention, product and material circulation, and protection of natural resources.
The NSCE guidelines prioritize: eliminating pollution and reducing waste generation; maintaining material value; environmental rehabilitation; reducing dependence on natural resources; promoting sustainable production and consumption; extending the lifecycle of materials; and ensuring a fair and equitable way to address gender, racial, ethnic, and socioeconomic disparities.
Aside from creating a regulatory and institutional framework for the circular economy, NSCE provides for: the promotion of innovation, cultural development, education, and the cultivation of skills necessary for reducing, reusing, and promoting circular production redesign; the creation of a regulatory and institutional environment, favorable to this circular economy; the reduction of resource consumption and waste generation, preserving their material value; the proposal of financial instruments to support this circular economy; and a push—among all levels of government—to engage stakeholders within the circular economy.
The NSCE also provides for the creation of the National Forum on Circular Economy, a consultative collegiate body, chaired by the Ministry of Development, Industry, Trade and Services, tasked with advising, monitoring and evaluating the implementation of the NSCE.
The Environmental, Climate Change and ESG Practice of Tauil & Chequer Advogados, in association with Mayer Brown, is available for additional clarification on the topic.
According to the decree, a “circular economy” is an economic system that seeks to sustain the circular flow of resources and integrates economic activities to a circular resource management system by adding to, retaining, or rehabilitating solid waste economic values, grounded in the principles of waste prevention, product and material circulation, and protection of natural resources.
The NSCE guidelines prioritize: eliminating pollution and reducing waste generation; maintaining material value; environmental rehabilitation; reducing dependence on natural resources; promoting sustainable production and consumption; extending the lifecycle of materials; and ensuring a fair and equitable way to address gender, racial, ethnic, and socioeconomic disparities.
Aside from creating a regulatory and institutional framework for the circular economy, NSCE provides for: the promotion of innovation, cultural development, education, and the cultivation of skills necessary for reducing, reusing, and promoting circular production redesign; the creation of a regulatory and institutional environment, favorable to this circular economy; the reduction of resource consumption and waste generation, preserving their material value; the proposal of financial instruments to support this circular economy; and a push—among all levels of government—to engage stakeholders within the circular economy.
The NSCE also provides for the creation of the National Forum on Circular Economy, a consultative collegiate body, chaired by the Ministry of Development, Industry, Trade and Services, tasked with advising, monitoring and evaluating the implementation of the NSCE.
The Environmental, Climate Change and ESG Practice of Tauil & Chequer Advogados, in association with Mayer Brown, is available for additional clarification on the topic.
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