Interinstitutional Committee for the Brazilian Sustainable Taxonomy Publishes First Regulations

On  May 3, 2024, the Interinstitutional Committee for the Brazilian Sustainable Taxonomy (CITSB)—keeping with its goal of coordinating the development of the Brazilian Sustainable Taxonomy—published its first set of regulations.

Resolution No. 01/2024 establishes the CITSB's Internal Regulations, detailing the responsibilities of its Presidency and Executive Secretariat. The Internal Regulations also establish guidelines for the creation and implementation of the relevant technical work groups.

In addition, the CITSB published Joint Resolution ME/CITSB No. 03/2024, creating 10 technical work groups, responsible for defining criteria, developing standards, and establishing systems for the measurement, reporting, and verification of financial flows for the activities, assets and projects under their respective authorities. The groups cover: (i) agriculture, livestock, forestry, fishing, and aquaculture; (ii) extractive industries; (iii) manufacturing industries; (iv) power and gas; (v) water, sanitation, waste, and decontamination; (vi) construction; (vii) transport, storage, and logistics; (viii) social services; (ix) measurement, reporting, and verification of emissions; and (x) social inequalities.

The publication of these standards are the federal government's first steps to meet the ambitious November 2024 deadline to complete the Brazilian Sustainable Taxonomy, ahead of the 2024 UN Climate Change Conference.

The Environmental, Climate Change and ESG Practice of Tauil & Checker Advogados, associated with Mayer Brown, is available for additional clarification on the topic.