Brazil approves low-carbon hydrogen framework: Brazilian President Lula da Silva approved a legal framework to boost investment in low-carbon hydrogen, effective 1 January 2025, Bloomberg reported on Saturday, citing an announcement made in the country’s Official Gazette. Green hydrogen could help Brazil transition from its oil industry, given that the country is capable of making the cheapest green hydrogen in the world excluding subsidies, according to BloombergNEF.

Lula didn’t go all the way: The Brazilian leader decided to veto some tax credit provisions, citing financial and legal concerns. “Despite the good intentions of the legislator, the provisions go against the public interest by establishing incentives that violate concepts established in the financial and budgetary legislation and generate inaccuracies that create legal uncertainty,” Lula said in the announcement.

REMEMBER- Brazil wants in on the hydrogen hype: Brazil is exploring the possibility of USD 30 bn worth of low-carbon hydrogen production projects. The country has the potential to produce 1.8 bn metric tons of the green fuel per year.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • IFC to boost Georgia’s SMEs, climate finance: The World Bank’s private investment arm IFC is investing USD 150 mn in Georgia's TBC Bank to enhance the bank’s SMEs and climate finance portfolio. Half of the funds will be earmarked for renewable energy and energy-efficient SMEs. The initiative is expected to help offset up to 30k tons of CO2 emissions annually by 2028. (Statement)
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