“Implementation of Solid Waste Policy Can Drive Progress Across Different Sectors”
Publication on Exame magazine’s online platform features comments by Senior Partner João Emmanuel Cordeiro Lima.
Legislation encourages recycling and circular economy; lack of infrastructure remains a barrier
Approved by the National Congress in 2010, Brazil’s National Solid Waste Policy promotes practices aligned with the concept of a circular economy, such as reverse logistics and selective waste collection, which can drive progress in recycling and create opportunities for new initiatives in the sector. Still, the effective implementation of the policy is hindered by limited infrastructure, especially in smaller municipalities.
Among the challenges, the deadline to eliminate open-air dumpsites expired on August 2, yet such sites continue to contribute to environmental contamination and represent a major hurdle for Brazil’s aspirations of becoming a leader in the global environmental agenda — especially with COP30 approaching, to be held next year in Belém, Pará. To better understand the context behind the legislation, Esfera Brasil spoke with specialists in infrastructure and environmental law.
According to attorney Daniel Almeida Stein, a partner in the infrastructure sector at Giamundo Neto Advogados, the law strongly encourages consortium-based solutions due to the economic scalability of such projects and their broader environmental impact. However, harmonizing federal, state, regional, and municipal waste policies — as well as aligning the interests of the respective public entities — remains a major challenge in project structuring.
“Other challenges include defining the scope of service delivery in potential contracts, given the multiple dimensions that waste management encompasses, and reconciling interests when determining service fees. In many municipalities, waste services are either not charged or are charged very inefficiently,” he explained.
Reducing Bureaucracy
A concept increasingly present in public policy discussions on sustainability, the circular economy focuses on minimizing waste and optimizing resources, keeping products, materials, and resources in use for as long as possible. According to João Emmanuel Cordeiro Lima, partner at Nascimento e Mourão Advogados and professor of Environmental Law at the Pontifical Catholic University of São Paulo (PUC-SP), legislation — especially environmental and tax regulations — needs to incentivize the reintegration of waste into the production chain.
“In environmental matters, this can be done by reducing unnecessary bureaucratic hurdles that currently impact certain waste management and handling operations. On the tax side, it’s important to ensure policies that encourage economic agents to recycle, reuse, and purchase recycled goods. Today, in some cases, the opposite happens: purchasing such goods is more expensive and more complex,” he emphasized.
Regulating the sector and promoting the circular economy also present new business opportunities. “Much of what is discarded and considered worthless actually has significant economic value. By rethinking these concepts through recycling and reuse, the main benefit is reduced pressure on natural resource extraction,” said Ana Chagas, a partner in Environmental Law, ESG, and Climate Change at Simões Pires Advogados.
“We’ve seen growing public awareness around consuming more sustainable products, and greater investment in environmental education programs can help raise awareness about the importance of proper waste management — potentially increasing demand for sustainable products and services. An informed society tends to support and buy from companies that adopt sustainable practices,” she added.
In Congress
This year alone, four bills focused on improving solid waste management have been introduced in the Federal Senate, including a proposal for a plastic reduction policy. However, there are no signs these issues will be addressed in the second half of the year, given the urgency of matters such as tax reform regulations and payroll tax reinstatement — alongside a semester expected to be marked by lawmakers’ involvement in municipal elections within their electoral bases.
Exame Magazine Online Platform, August 9, 2024, 1:32 p.m.
