Brazil Approves Incentive for Fertilizer Production Based on GHG Emission Policies
Brazil
On August 12th, the Brazilian Supreme Federal Court, by majority, upheld the constitutionality of the Soybean Moratorium and ordered the termination of judicial and administrative proceedings concerning alleged illegalities involving the agreement. The Court also upheld laws from the State of Mato Grosso and the State of Rondônia restricting tax benefits and other public incentives for companies participating in agreements with stricter environmental standards. The joint hearing of ADIs 7913, 7916 and 7919 and ADC 102 concerning the constitutionality of the General Environmental Licensing Law (Law No. 15,190/2025) was postponed, with no new date set. (STF; CBIC)
Deforestation alerts in the Amazon Biome fell 36% from August 2025 through July 2026 to 2,874.38 km², the lowest result in the Deter series beginning in 2016. Alerts in the Cerrado fell 7.8% to 5,119.46 km². Annual Prodes data also showed reductions of 34.3% in the Caatinga, 15.32% in the Atlantic Forest and 41.7% in the Pampa. (MMA)
The Brazilian Supreme Federal Court started a virtual session to trial appeals related to the ruling on the “time frame” thesis. The session is scheduled to end on August 18th. Proceedings under review include ADC 87, ADI 7586 and Theme 1031. The underlying ruling established a 180-day deadline for the Government to adopt transitional measures. (STF)
Research supported by the Agribusiness Studies Institute of the Brazilian Agribusiness Association estimates the agricultural sector in Brazil could generate up to 314.3 million carbon credits from 2025 through 2035. Improved agricultural land management accounts for 312.1 million of the estimated potential. International sales will depend on transfer regulation and authorization under Article 6 of the Paris Agreement. (ABAG)
The Ministry of the Environment and Climate Change launched a public consultation on the Second National Inventory of Unintentionally Produced Persistent Organic Pollutants. The document includes emissions from ten source categories, including waste, metals, energy, minerals, transport, open burning and chemicals. Contributions may be submitted until August 24th. (MMA)
Research led by Embrapa identified 40 bee species in soybean fields in the regions of Rio Verde and Montividiu, State of Goiás. Of these, 27 had not previously been recorded in scientific literature visiting soybean flowers in Brazil. Native vegetation near fields and lower insecticide and fungicide use favored more balanced bee communities and pollination services. (Embrapa; Journal of Applied Entomology)
The Senate has approved a bill providing up to approximately US$ 1.96 billion in tax incentives for over five years for the construction, expansion and modernization of fertilizer plants. The Fertilizer Industry Development Program also covers bioinputs, biofertilizers and remineralizers. Tax credits will depend on criteria including greenhouse gas emissions reductions and energy efficiency. The bill awaits presidential approval. (Federal Senate)
Adecoagro allocated US$ 17.8 million of the 2Q26 expansion investment to increasing planted areas and continuing the expansion of biomethane production in Brazil. Sugarcane, ethanol and energy operations exported 328,924 MWh in 1H26 (+28.4%), driven by the increased crushing and the use of stored bagasse. Ethanol accounted for 78% of the production mix, compared with 52% in the same period of 2025. (Adecoagro)
São Martinho produced 413.7 thousand m³ of ethanol in the 1Q27 (+16.7%). The company sold 312 thousand Decarbonization Credits, an increase of 72.4%, while cogeneration revenue rose 5.3% to approximately US$ 17.4 million. Sugarcane crushing increased 3.9% to 8.5 million tonnes, supported by a 7% increase in agricultural yields. (São Martinho)
Latin America
The Regional Government of Biobío and National Forest Corporation in Chile signed a US$ 10.7 million agreement to restore forests affected by wildfires. The 36-month project will reforest 4 thousand hectares and benefit 450 small and medium-sized forest landowners. Activities cover the restoration of native forests and productive plantations. (Conaf)
The Ministry of Environment and Sustainable Development in Colombia adopted environmental guidelines for sustainable avocado production through Resolution No. 982/2026. The regulation integrates soil management with water and biodiversity conservation and must be considered by authorities in all environmental procedures related to the crop. The measure affects farmers, exporting companies and new expansion projects in the supply chain. (Ministry of Environment and Sustainable Development)
C2 Energía, a partnership between Celsia and Cubico Sustainable Investments in Colombia, reached 580 MWp of installed solar capacity. Revenue increased 65.1% and EBITDA rose 75.8% in 2Q26. The company expects another 300 MWp to enter construction. Celsia reported consolidated revenue of approximately US$ 369.4 million during the period. (Celsia)
Mineros, EPM, Grupo Argos and Grupo Nutresa will cofinance an approximately US$ 9.1 million investment to build a public school in El Bagre, Antioquia, Colombia. The 11 thousand m² project will be financed through the Works for Taxes mechanism and will benefit more than 1,080 students in a region affected by armed conflict and illegal mining. (Mineros)
In Peru, the Ministry of the Environment, Ministry of Economy and Finance, German development bank KfW and National Service of Natural Areas Protected by the State will allocate US$ 2.7 million to preserve 3.6 million hectares of Amazon forest. Funding will support conservation agreements with communities and local participation mechanisms in four protected areas in Loreto and Ucayali. In 2024, the program maintained 524.7 thousand hectares under participatory conservation mechanisms. (Ministry of the Environment)
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