The Governor of the Federal District sanctioned Law No. 7,404, on January 16, 2024, establishing the District Policy for Green Hydrogen, marking a small step towards environmental sustainability and energy diversification in the region.
Here is a brief summary of each legal provision:
Article 1: The law introduces the District Policy for Green Hydrogen, with the main goal of reducing carbon emissions and expanding the Federal District’s energy matrix. This article provides key definitions, clarifying what is meant by “green hydrogen” and the “green hydrogen production chain.”
Simply put, the law defines green hydrogen as “hydrogen obtained from renewable sources, through a process in which no carbon emissions occur.” The green hydrogen production chain refers to the entities that use, produce, generate, industrialize, distribute, transport, or market green hydrogen and its derived products.
Article 2: The specific objectives of the policy are ambitious and multifaceted, including promoting the use of green hydrogen in various applications, reducing greenhouse gas emissions, stimulating the green hydrogen production chain, and promoting technological development and investments in the sector.
Article 3: The policy guidelines are outlined, focusing on encouraging studies, standards, programs, and plans that aim to increase the participation of hydrogen energy in the energy matrix. This article also emphasizes encouraging the adoption of fiscal and credit instruments, as well as collaborating with public and private institutions to foster technological development and human resource training.
Article 4: It addresses financial matters, ensuring that expenses arising from the implementation of the law will be covered by budget allocations.
Article 5: It delegates to the Executive Branch the responsibility to regulate the law, also establishing the form of monitoring and evaluation of the public policy.
Although the constitutionality of the law may be questioned for being too vague or indirectly addressing energy-related issues, a subject within the Union’s exclusive competence, the Technical Note from the Attorney General’s Office of the Federal District argues that the project focuses on a specific environmental protection policy. Therefore, the Federal District would be exercising its concurrent competence to legislate on the matter.
