Brazil authorizes biomethane certificates to boost renewable energy investment

The Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) approved the first certifications for producers of biomethane in Brazil.

This move allows three specific companies to issue Certificates of Guarantee of Origin for Biomethane (CGOB). These certificates verify that the gas comes from renewable sources and can be traded independently of the physical gas molecule. The new regulation creates two distinct assets for the energy market.

Companies can purchase the biomethane as a physical fuel for consumption, while other entities can buy the CGOBs to prove they are meeting decarbonization goals. This system supports the Lei do Combustível do Futuro, a law passed in 2024 that sets mandatory emission reduction targets for natural gas producers and importers. Producers believe these certificates will create a new revenue stream and make large-scale projects more economically viable.

For example, Bioo Plataforma de Biossoluções already signed a contract with a European group to sell these certificates on the voluntary market. While the regulatory framework is now active, the market still waits for the government to finish a digital platform this year to manage the issuance and pricing of the certificates.