Central Bank standardises the registration of carbon credits by financial institutions
On 22 November 2022, the Central Bank of Brazil (‘CBB’) published Normative Instruction (‘NI’) No. 325, which defines the accounting of sustainability assets such as Carbon Credit and Decarbonisation Credit certificates into the chart of accounts of the Accounting Standard of Institutions Regulated by CBB.
As from 1 January 2023, financial institutions must standardise the way they register carbon credits and other sustainability assets in the accounting documents prepared after this baseline date.
The new regulation sets forth that these assets will be classified depending on how they will be managed by the financial institution, for example, if purchased for future sale and profit generation (CMN Resolution No. 4,967/2021) or used in their own activities (CMN Resolution No. 4,924/2021).
The CBB’s intention is to bring greater transparency to the sector in addition to monitoring investment portfolios and following up the evolution of these transaction.
By adapting the chart of accounts to contemplate the registration of sustainability assets, CBB NI No. 325/2022 contributes to the strengthening of said market, as it establishes clearer criteria for measurement by financial institutions and other institutions authorised to operate by the CBB.
The regulation is in tune with international accounting standards issued by the International Accounting Standards Board (‘IASB’).
The full text of CBB NI No. 325/2022 can be found here (Portuguese only).
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Term of reference for waste management plans in São Paulo state
A Companhia Ambiental do Estado de São Paulo (Cetesb) editou a Decisão de Diretoria nº 130/2022/P, que estabelece o termo de referência para a elaboração de PGRS no âmbito do licenciamento ambiental paulista.
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New proposals for federal decrees on the take-back of metal and paper/carboard packaging
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Client Alert
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New regulation on the chemicals controlled by Brazil’s Federal Police
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