The ISS Neutral program has already neutralized the emission of more than 240 tons of carbon.

The city government's program is aimed at companies located in the municipality that wish to neutralize their emissions - Photo: Marcelo Piu

The Rio de Janeiro City Hall has released the final results of the third round of the ISS Neutral Program. In total, 10 companies neutralized 122,9 tons of carbon dioxide equivalent (CO2eq.) in their emissions inventories, receiving tax credits of approximately R$3,4 million in return. This amount represents approximately half of the total volume neutralized in the program's three rounds – 246,3 tons of CO2eq., with a tax credit value of approximately R$5,5 million.

– The ISS Neutral program reached its third edition, registering a much greater reach than in previous calls for proposals, as companies recognize the city hall's work in stimulating the carbon credit market. Some of them participated in more than one edition. We continue to move forward, helping to consolidate this sector in Rio – explains Osmar Lima, municipal secretary of Economic Development.

Implemented by the Secretariats of Economic Development (SMDE) and Finance (SMF) with the goal of making Rio the green investment capital of Brazil, the program is aimed at companies located in the municipality that wish to neutralize their emissions through the acquisition of carbon credits. To this end, the municipality allocates up to R$60 million annually, with a projected deadline of 2030. The City Hall also reduced the ISS (Service Tax) from 5% to 2% for companies in the carbon credit production chain, such as consultancies and auditing firms.

– With the neutral ISS (Service Tax), we seek to stimulate the green economy, encouraging the establishment of the carbon credit market in the city of Rio de Janeiro, as well as motivating other companies to neutralize their carbon emissions – says the Secretary of Finance, Andrea Senko.

Criteria in line with the international market.

Participating companies must meet international requirements. Emission inventories and carbon credit acquisitions must be national, conducted by companies based in Rio de Janeiro, registered from 2016 onwards, and certified by the main international certification bodies: VERRA, Gold Standard, or UN. Each company or economic group can deduct up to R$6 million in taxes to offset its emissions, which is equivalent to 10% of the total incentive value.

Carbon credits are assets that represent one ton of carbon equivalent removed from the atmosphere or prevented from being emitted into nature. Companies that demonstrate, through certified inventories, any of these mitigation actions can sell this asset on the market, which is currently voluntary in Brazil. Companies that want to become more sustainable but find it difficult to directly reduce their carbon emissions can offset them by financing initiatives that promote this reduction, purchasing carbon credits. This mechanism is essential for financing actions that make the world cleaner, rewarding those who promote sustainability and preserve the environment.

All information regarding the ISS Neutral Program is available at the following link.: https://desenvolvimento.prefeitura.rio/issneutro/