Bill No. 5,174/2023, introduced by Congressman Arnaldo Jardim (member of Cidadania Party), aiming at the Energy Transition Acceleration Program (Paten), is pending in Congress.

The Energy Transition Acceleration Program (PATEN), as outlined in Bill No. 5,174/2023, aims to advance sustainable development by:

• Providing financial support for infrastructure, technological research, and innovation projects with a focus on sustainability;
• Strengthening partnerships between financing entities and companies interested in sustainable initiatives;
• Enabling private companies to use their credits with the Federal Government to finance such projects.

The Program will leverage the “Green Fund,” consisting of private assets like tax credits and writs, which will be managed by the National Bank for Economic and Social Development (BNDES). This mechanism allows for tax transactions tied to sustainable investments, offering potential discounts on fines, interest, and legal charges.

Deputy Arnaldo Jardim, the bill’s proponent, estimates that R$ 3.5 trillion in tax credits could be directed toward energy transition projects, providing a significant boost to strategic sectors. The bill is currently under review by the Environment and Sustainable Development Commission.

Böing Vieites Gleich Mizrahi Rei Advogados is available for any further clarifications on this initiative.