The Senate’s Environment Committee (CMA) has approved a proposal that includes industrial projects that result in environmental gains, such as less polluting vehicles, for example, among activities that can be financed by resources raised by green certificates, which are income securities fixed income benefitted by the reduction of Income Tax, because they are linked to activities to protect the environment.
These bonds, or green debentures, for financing projects aimed at promoting sustainability, benefit from exemption from income tax for individuals and reduction of the tax rate for legal entities, and therefore are more attractive to investors, who achieve greater profitability by the money invested in them.
However, green titles are currently limited to a group of activities considered of environmental interest by the government, such as conservation units for tourism activities, sustainable timber exploitation and recovery of environmental preservation areas, among others.
The Senate Bill (PLS) 284/2014, by former senator Vital do Rêgo (PMDB-PB), avoids this possibility of arbitration by the Executive Branch and opens the possibility of benefit to “any and every sustainable development project” . The text modifies Law 12.431 / 2011, which provides for projects that will have priority of tax incentives in fundraising.
Until 2011, green debentures were issued only by development agencies, such as the World Bank, but after that they also began to be issued by companies, which now lead the market in volume of securities issued. The growing interest in this type of fixed-income securities would justify, according to Vital do Rego, that it be open to all ventures that result in environmental gains.
The bill received a favorable vote from the rapporteur, Senator Sérgio Petecão (PSD-AC), for whom the proposal improves the investment environment, stimulating access to green bonds. The project followed on March 8 for analysis in a final decision of the Economic Affairs Commission, where it awaits appointment of the rapporteur.