Energy Transition Acceleration Program (Paten)

On January 22, 2025, the Energy Transition Acceleration Program (Paten) was created to expand access to credit for companies holding receivables from the federal government, such as court-ordered debt payments and tax credits, to finance green economy projects.

It is one of the largest programs to promote financing for sustainable development projects in Brazil, with a particular focus on the energy transition. With an estimated mobilization of up to R$600 billion in investments, the program seeks, through guarantees and reduced financing interest rates, to boost sustainable projects, expand the generation and efficient use of low-carbon energy, decarbonize transportation, and replace fossil fuels—accelerating and democratizing the energy transition in the country.

The Green Fund, established by law and administered by the National Bank for Economic and Social Development (BNDES), underpins the program.

As a guarantee fund, it secures resources for low-carbon initiatives without requiring collateral, meaning investors are not obliged to sell assets to obtain financing. In this way, the fund reduces risks and costs for entrepreneurs and financial agents in sustainable development projects.

The program covers areas such as the development of sustainable fuels, energy recovery from waste, modernization of energy generation and transmission infrastructure, and the replacement of polluting sources with renewable alternatives.

In addition, it encourages research and development in carbon capture and storage technologies, green hydrogen, biogas, and other sustainable solutions.

The law also provides for tax settlements conditional on investment in decarbonization. This is a negotiation process between the debtor and the Federal Government, its agencies, and foundations, whereby the debtor acknowledges the debt and agrees on payment terms. Debtors with approved projects can use this instrument to participate in the program.

Established by Law No. 15,103/2025, Paten promotes the modernization of energy infrastructure, fosters innovation, and reduces bureaucracy in accessing financing for low-carbon projects. A milestone for clean technologies and renewable energy expansion, it is a strategic initiative that strengthens Brazil’s global leadership in decarbonization.

On February 18, 2025, the National Energy Policy Council (CNPE) created the Technical Committee for the Energy Transition Acceleration Program (CT-Paten). The committee is responsible for regulating, implementing, supervising, and enforcing Law No. 15,103/2025, particularly regarding criteria, procedures, and conditions for project approval.

OBJECTIVES

To promote the financing of sustainable development projects, especially those related to infrastructure and technological research, and innovation

Bring financing institutions closer to companies interested in projects in this segment

Enable the use of credits held by companies with the Federal Government as a financing instrument

Promote the generation and efficient use of low-carbon energy

SCOPE

Under the new legislation, sustainable development projects are those aimed at:

• Execution of infrastructure works, modernization, expansion, or implementation of sustainable energy production facilities

• Technological research and the development of innovation that provide socio-environmental benefits or mitigate environmental impacts

PRIORITY SECTORS

Development of technologies and production of fuels that reduce greenhouse gas emissions, such as:

• Ethanol
• Sustainable aviation fuel (SAF)
• Biodiesel, green diesel, and low-carbon synthetic fuels
• Biogas and biomethane
• Low-carbon hydrogen or green hydrogen and its derivatives
• Carbon capture and storage
• Recovery and energy recovery of solid waste
• Nuclear fission and fusion
• Natural gas as a substitute for higher-emission sources

Production of ammonia, green ammonia, and derivatives
Expansion and modernization of solar, wind, nuclear, biomass, natural gas, biogas, and biomethane generation and transmission, hydroelectric power plants, and other renewable energy sources
Replacement of higher-emission energy matrices with clean energy sources
Recovery and energy recovery of waste
Development and integration of energy storage systems
Production, transportation, and distribution of natural gas
Domestic production of nitrogen fertilizers
Decarbonization of the transportation matrix
Implementation of fuel supply infrastructure
Manufacture, sale, purchase, and use of heavy vehicles, agricultural machinery, and other equipment powered by natural gas and biomethane, as well as the conversion or replacement of diesel engines currently in use with natural gas and biomethane

INSTRUMENTS

Sustainable Development Guarantee Fund (Green Fund)

Tax transaction conditional on investment in sustainable development.

GREEN FUND

A private guarantee fund with its own assets, managed by BNDES

Its purpose is to guarantee, in whole or in part, financing risks assumed by financial institutions for the development of projects under Paten

Composed of credits held by companies with the Federal Government:

• Judicial payment orders and credit rights arising from final court decisions against the Federal Government

• Tax credits related to the Tax on Industrialized Products (IPI), as well as contributions to PIS/Pasep and Cofins, among others

TAX SETTLEMENT

Companies with an approved sustainable development project may submit a proposal for an individual settlement of debts owed to the Federal Government, its agencies, and public foundations.

NUMBERS

R$ 800 billion – Estimated amount receivable from the Federal Government (such as court-ordered debt payments and tax credits) to finance green economy projects through Paten.

DATES

01/22/2025 – Law No. 15,103/2025, establishing the Energy Transition Acceleration Program (Paten), was sanctioned.

February/2025 – Resolution of the National Energy Policy Council (CNPE) establishes the Technical Committee of the Energy Transition Acceleration Program (CT Paten)

May/2025 – MME Ordinance designates representatives and holders for CT Paten