Federal Government regulates National Biomethane Program

On September 5, 2025, the Federal Government published Decree No. 12,614/2025, which regulates Law No. 14,993/2024 (Fuel of the Future Law) with respect to the National Program for Decarbonization of Natural Gas Producers and Importers and for the Promotion of Biomethane (National Biomethane Program).

This new regulatory framework aims to reduce greenhouse gas (GHG) emissions in the natural gas sector by establishing mandatory decarbonization targets and promoting the use of biomethane as a sustainable alternative. The model is inspired by RenovaBio, applying market-based mechanisms and environmental certification principles to the natural gas segment.

Structure and operation of the Program

The Program establishes mechanisms for natural gas producers and importers to reduce their emissions, either through the direct use of biomethane or by acquiring Biomethane Origin Guarantee Certificates (in Portuguese, Certificados de Garantia de Origem do Biometano, the CGOBs). These certificates may be issued by certified biomethane producers or importers and will have a validity period of 18 months.

Key elements of the regulation include:

• Annual decarbonization targets: these will be set by the National Energy Policy Council (in Portuguese, Conselho Nacional de Política Energética, the CNPE) by November 1^st of each year and individualized by the Brazilian National Agency for Petroleum, Natural Gas and Biofuels (in Portuguese, Agência Nacional do Petróleo, Gás Natural e Biocombustíveis, the ANP) by December 1^st. For the year of 2026, the overall target set by law is a one per cent (1%) reduction in emissions in the natural gas sector.
• Target compliance: may occur through biomethane consumption or by purchasing and retiring CGOBs.
• CGOB issuance: subject to certification of origin and efficiency by an accredited agent, ensuring traceability and environmental integrity.
• Registration and reporting: the retirement of CGOBs must be performed with the designated registrar, who will report compliance to the ANP.
• Sanctions: non-compliance may result in fines of up to fifty-million Reais (BRL 50,000,000.00), as well as temporary or partial suspension of operations.

Regulatory stages and next steps

The ANP will have one hundred and eighty (180) days to establish the procedures necessary for the implementation of the National Biomethane Program

The ANP has already announced that it will use the RenovaBio model as a reference and that the CBIO Platform will be adapted to register CGOBs, with the aim of integrating the two systems into a convergent environment.

At present, the market awaits the conclusion of the Regulatory Impact Analysis (RIA), which will support the definition of the CNPE’s global target.

Market context and outlook

The Brazilian biomethane market, though relatively young, with about a decade of development, has been consolidating through private investment and voluntary demand. Early production, focused on municipal solid waste, paved the way for broader applications in agriculture, industry, and transportation, expanding both scale and diversity of production.

The publication of the Decree No. 12,614/2025 represents a milestone in the consolidation of the sector, bringing regulatory predictability and integration between voluntary and compliance markets. As highlighted by industry stakeholders, the regulation provides a strategic opportunity for Brazil to expand its biomethane supply, given that demand for decarbonization solutions already exists among energy, transport, and industrial companies.

The recognition of the voluntary market, which already accounts for a significant share of transactions, will be critical. If this segment is not considered in the calculation of targets, the country risks inhibiting the expansion of a naturally growing and efficient market. By including it, the decree acknowledges its role as a transitional instrument and catalyst for the new decarbonization model.

Conclusion

The National Biomethane Program marks the beginning of a new phase in Brazilian energy policy, integrating environmental goals, a regulated market, and economic instruments. The regulation reinforces the role of biomethane as a strategic source of renewable energy, promoting competitiveness, regulatory predictability, and technological innovation in the natural gas sector.

With the definition of targets by the CNPE and complementary regulations by the ANP, Brazil is taking a decisive step toward energy transition based on market instruments and incentives for a low-carbon economy.

The Energy and Natural Resources Team at CMA remains available to provide further clarification on this matter.