Polymers under LatAm "REACH", Funding Climate Transition, Paying forBiodiversity Data, Greenwashing & Ecolabels, GHG Emission Offsets, Recycling
Are you overwhelmed by all the new chemical control laws cropping up in Latin America?
Look no further than our ?“Crash Course on Chemical Registration in Latin America” where clear on-demand video content and strong written reports will give you the information your team needs to being complying with local “REACH”-inspired regulations.
Learn more here: rb.gy/1e9owi
Learn about the role of the Foreign Chemical Manufacturer under the new schemes in our special short course: rb.gy/xmvcee
Get English translations of the key registration instruction guides for Chile and Colombia here: https://ambientelegalacademy.teachable.com/p/home
Polymers under the new “REACH”-inspired Regulations
“What about polymers?” is a common question I get asked when giving talks on the “REACH”-inspired regulations coming online in Latin America.? While harmonization is a laudable goal for our new rules, it is not the case on some important issues.? The registration of polymers is one important example.
Let’s take a quick look at how each of the new schemes handles registration of polymers.
·??????? Colombia
In Colombia, polymers, including the monomeric units and additives that form part of the polymer, benefit from a flat exemption from registration – as do “UVCB" (Unknown or Variable Composition, Complex Reaction Products, or Biological Materials).
·??????? Chile
In Chile, the polymers are not registered - instead the notification is done for the qualifying monomers in those polymers.
·??????? Brazil
Although the approved “REACH”-inspired bill still needs to be signed by the President and published, we can already talk about how it treats polymers – understanding that although unlikely, it could always suffer a change through Presidential veto.
In Brazil, the treatment of polymers is more nuanced.? “Polymers of low concern” – defined according to a future regulation – and monomeric units that are part of polymers and additives added to preserve the stability of polymers will be exempt from registration.? All other polymers will need to be registered.
·??????? Peru
Peru’s chemical control decree – and even the draft implementing regulation that was just up for public comment – are silent on the issue of polymers.?
EUDR:? Impact already being felt in Latin America?
Even though the EU recently postponed enforcement of its groundbreaking supply chain rule – the European Union Deforestation Regulation – for another year, the impacts may already be hitting Latin America.? According to recent press reports, one major food manufacturer has recently announced that it has shifted all its soy sourcing away from Brazil to undefined Asian countries to minimize its deforestation exposure.?
The seven commodities covered by the EUDR – now set to go into effect on December 30, 2025, for large operators and traders and June 30, 2026, for micro- and small companies - are cattle, cacao, coffee, palm oil, rubber, soya, and wood.? Anyone familiar with these products knows that six of the seven (all but palm oil) are major exports for Latin America. It will be very important for the producers in the region to continue work to shore up compliance with the EUDR in hopes they don’t lose more market share because companies fear the deforestation exposure risk.?
Funding the Climate Transition
Brazil’s federal government announced last week the creation of a new platform to fund their plans for climate transition and ecological transformation projects:? Brazilian Platform for Investments in Climate and Ecological Transformation (known by acronym “BIP”).? The big idea here is to have a place to connect international investors with sustainable development projects in Brazil.? International partners and funding helped in the development of the new platform.
The initial focus will be on three sectors: nature-based solutions and the bioeconomy; industry and mobility; and energy.? According to the government, among others, the goals of the platform are to:
Within the three focus sectors, the Platform has already identified and included pilot projects totaling US$10.8 billion in capital that still require that the final investment be made.? Among others, these projects include:
·??????? A company developing a $3 billion renewable fuels proposal aimed at producing 1 billion liters per year of green diesel and sustainable aviation fuel from macauba, a Brazilian plant;
·??????? As US$1.15 billion project that will be the first industrial-scale green fertilizer plant in Brazil;
领英推荐
·??????? A $3.5 billion green hydrogen plant;
·??????? A? plan to raise US$425 million to finance the development of low-emission extraction methods for rare earth elements;
·??????? Reforestation projects of different types;
·??????? A project to spurt investment US$2.5 billion in the construction of industrial hubs in Brazil for the production of green hydrogen and hot briquetted iron (HBI) aimed at decarbonizing the steel industry.
Brazil’s plans for its Ecological Transition and adjusted climate goals will require this funding – and the joint work of private, public, domestic, and international players.
Are Certifications the Antidote to Greenwashing?
Only time will tell.? But eco-labels may serve as an antidote to frivolous claims made by companies that aren’t really putting in the effort needed to ensure the accuracy of their green claims. Chile just released for public comment an important draft regulation that establishes the conditions, requirements and methodologies related to the granting of certificates, labels, and tags for the quantification, reduction and management of greenhouse gases, short-lived climate pollutants, and water use.? Interested parties have a 23-day public comment period to share their feedback with the government.
Link to Draft:
National Regulations on Genetic Data from Nature
During Colombia’s hosting of the ambitious and well-attended COP16 on biodiversity, the question of Digital Sequence Information (DSI) (once referred to as genetic patrimony) has been on the agenda. Colombia’s Minister of Environment has been vocal in calling for a global fund to share the benefits of the genetic resources of any given country.? In other words, the genetic data discovered in one country’s rainforest and used by industries from pharmaceuticals to biotechnology, from cosmetics to agriculture, to create new solutions to bring to market should result in benefits for the communities from where the data were taken.?
But don’t expect only international treaties and funds.? Colombia made it clear last week that it is working on its own national legislation to ensure that the data is traceable and that there is a “just distribution” of the benefits with the local communities.? This type of regulation is not new to the Latin American region.? In 2015, Brazil enacted Law 13123, which provides for access to genetic heritage, protection and access to associated traditional knowledge, and sharing the benefits for the conservation and sustainable use of biodiversity.
It will be important to watch what Colombia proposes in the wake of COP16 to regulate its own impressive biodiversity data.
Brazil: Circular Economy News
Brazil is in the final stretches of making good on major changes to the way it handles waste – including its progressive incentives to the recycling industry.? The country has posted for public comment a draft standard that sets procedures for the presentation, analysis, approval, follow-up, monitoring, rendering of accounts and evaluation of the results of proposals and projects under the Recycling Industry Incentive mechanism.? Interested parties have until November 1, 2024 to submit comments.
Link to Draft:
Emission Reduction Projects:? Getting Down to Brass Tacks
Chile already has a regulatory scheme to tax carbon – and other air pollutant emissions – from major sources.? And it also has rules that will allow companies to offset the taxes they owe by the creation of certified offset projects. But who will make sure those projects are not a sham?? Chile has created the need for the External Certification Programs that will be recognized by the Ministry of Environment.? These External Certification Programs will be tasked with validating that the emission reductions associated with any company’s offset projects are additional, measurable, verifiable and permanent in accordance with the law.?
Toward that end, the government is now putting up for public input two different External Certification Programs – “Biocarbon Standard” and “Cercarbon” – to allow interested parties a chance to review and comment on these initiatives.? The very short 10 business days comment period starts on October 28th.
Link:
?
?
?
?
Professor Associado na Funda??o Dom Cabral
4 个月Sociabilizado!