This axis promotes the transition to a circular and sustainable model of production and consumption, moving beyond the linear economic model that relies heavily on natural resources, generates significant waste, and degrades the environment.
It includes regulatory, fiscal, credit, and financial incentives to encourage production with reduced extraction of natural resources, the use of raw materials with lower socio-environmental impact, and lower greenhouse gas emissions. It fosters products, processes, and services designed with more circular materials to promote reuse, remanufacturing, recycling, and waste recovery.
Key Actions:
Aligned with the new National Circular Economy Strategy (ENEC), this axis, in partnership with ten other Ministries, establishes fiscal and regulatory incentives for innovation, culture, education, and skill development aimed at reducing, reusing, and promoting the circular redesign of production. It encourages reduced resource usage and waste generation, preserving material value.
- It provides support to municipalities for expanding selective waste collection and phasing out open dumps in a humane manner, while strengthening reverse logistics in production and the use of biodigesters.
- It regulates and implements the Recycling Incentive Law (LIR), which offers benefits for projects that boost the recycling value chain. This includes the creation of the Recycling Support Fund (Favorecicle) and the Investment Funds for Recycling Projects (ProRecicle), providing fiscal incentives for the recycling chain with a special focus on waste-picker cooperatives.
- The axis also supports the National Solid Waste Policy Law, which regulates Brazil's recycling system, ensuring that manufacturers, importers, distributors, retailers, consumers, and municipalities are responsible for the waste generated and its environmentally appropriate disposal.
- In the basic sanitation sector, it promotes the reuse of wastewater. Additionally, the creation of Incentivized Debentures and Development Credit Notes (LCDs) ensures a flow of resources for basic sanitation, helping to prevent river and ocean pollution.
Axis 5: Circular Economy
- Support program for municipalities to expand selective waste collection and the use of biodigesters
- Regulation of reverse logistics credit certificates
- Water and sewage: expansion of sanitation coverage (water and sewage) and actions to technologically improve and optimize wastewater treatment processes
- Technological challenges for waste reuse and organic waste treatment, such as biodigesters
- National Circular Economy Strategy
- Diogo de Sant’Ana Program for Popular Recycling (Pró-Catador)
- Sustainable disposal of seized goods.
- Incentives for the recycling sector and circularity in the Tax Reform