The Energy Transition Program (Paten), established by Brazilian Law No. 15.103/25, was enacted after vetoes by the President of the Republic of Brazil and published in the Official Gazette (Diário Oficial da União – DOU) on January 23rd. Its main objective is to encourage the replacement of polluting energy matrices with renewable sources, promoting the development of sustainable projects in Brazil.

Purpose of the Program:
The program aims to foster initiatives in infrastructure and technological research focused on low-carbon energy, covering areas such as solar energy, wind energy, biomass, biogas, and low-carbon hydrogen, as well as carbon capture and storage technologies.

Additionally, the Paten establishes the Green Fund, managed by the National Bank for Economic and Social Development (BNDES – Banco Nacional de Desenvolvimento Econômico e Social), which is part of Brazil’s strategy to ensure financing for companies with approved projects, utilizing credits held by these companies with the Federal Revenue Services in Brazil.

Benefits of Paten:
Moreover, the program allows for the negotiation of tax debts through transactions conditioned on investment in sustainable projects, facilitating installments and discounts on debts with the Federal Government of Brazil.

It is important to highlight that the Law prioritizes projects related to the production of renewable fuels such as ethanol, biodiesel, biogas, hydrogen, and sustainable aviation fuel. It also emphasizes the expansion of energy storage systems and the integration of renewable sources.

The initiative also stipulates that 0.50% of the net operating revenue of energy distribution companies in Brazil must be allocated to research, development, and energy efficiency programs, with part of the resources earmarked for the installation of photovoltaic panels in underserved communities, thereby increasing access to renewable sources.

Impacts:
The program reflects a broad strategy for energy transition and innovation in Brazil, while also addressing the challenge of balancing incentives with fiscal responsibility. In this sense, the implementation of Paten has the potential to consolidate Brazil as a leader in the use of sustainable technologies, as well as facilitate access to credit for sustainable projects and stimulate the modernization of the country’s energy infrastructure.