January 17, 2023

The State of Rio de Janeiro establishes new rules for Greenhouse Gas Emissions Reporting Framework

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The Rio de Janeiro State Environmental Council (CONEMA) published Resolution No. 97, approving Rule No. 52 of the Rio de Janeiro State Environmental Agency (INEA) to establish procedures, requirements, and criteria for compliance with the Greenhouse Gas Emissions (GHG) Reporting Framework.

The rule lists the types of projects that are subject to the obligation of annually submitting the GHG Emissions Inventory to INEA, such as landfills, thermal power plants, oil and steel plants , but leaves to INEA’s discretion the possibility of imposing such an obligation on other sectors. According to the new rule, the obligation to submit the annual GHG Emission Inventory shall only apply to activities that (i) are on the list of categories indicated or defined by INEA, (ii) are classified—due to their size and environmental impact—as class 4, 5 and 6 by the State System of Environmental Licensing (SELCA, enacted by State Decree 46,890/2019), and (iii) whose annual emissions exceed a 10,000 tCO2eq threshold, with scopes 1 and 2 considered.

The deadline for yearly compliance is on the last business day of June of the year subsequent to the year being reported, and failing to deliver or delaying the annual report may result in administrative sanctions. In addition, entities that are not required to annually submit a GHG Emission Inventory must at minimum submit the inventory during the license renewal proceedings or two years after the issuance of the first operation license.

Lastly, the new regulation also provides that entities participating in the GHG Reporting Framework—whether by requirement or voluntarily—may be entitled to incentives or benefits provided for in SELCA if the entities are in full compliance with the requirements of INEA's Rule No. 52.

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