Decree encourages projects with environmental and social benefits

Gabriela de Ávila Machado
Lawyer at Marcos Martins Advogados

On June 5, 2020, on World Environment Day, Decree 10.387/2020 was published, amending Decree 8.874/2016 to encourage the financing of infrastructure projects with environmental and social benefits.

The intention of the Decree is to encourage the financing of infrastructure projects with environmental and social benefits.

projects that provide significant environmental benefits in the sectors of urban mobility (non-motorized public transport and low-carbon public transport), energy (projects based on renewable solar, wind, waste and small hydroelectric power generation technologies) and basic sanitation (water supply, sewage, rainwater management and urban drainage systems and urban solid waste management).

As for projects with relevant social benefits, the decree states that they are those that fall within any of the sectors listed in §1 of Article 2 of Decree No. 8,874 of 2016, which are carried out in subnormal agglomerations or isolated urban areas.

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