Governors Push for Gas Inclusion in Redata, MPTCU Requests Rare Earths Audit

Brazil faces a dual energy challenge: the inclusion of natural gas in the Special Taxation Regime for Data Centers (Redata) and an audit of rare earths projects.

The energy transition and the expansion of digital infrastructure in Brazil are encountering new debates that intertwine economy, sustainability, and the environment. Recently, two distinct movements, connected by the vision of a cleaner, more technologically advanced future, have gained prominence. On one hand, governors are pushing for the inclusion of natural gas as an eligible energy source for data centers, aiming to attract investment. On the other, the Public Prosecutor’s Office is demanding a rigorous audit of rare earthsmining projects, concerned about environmental impacts.

These developments underscore the complexity of balancing economic growth and energy demand with environmental preservation. As digital infrastructure advances, the choice of electric energy sources and the exploration of rare earth minerals become crucial points in Brazil’s journey toward Net Zero Carbon.

Governors Advocate for Natural Gas in Data Centers

Governors from Amazonas and Sergipe have formally requested President Lula to include natural gas in the Redata regulation. The Special Taxation Regime for Data Center Services, recently sanctioned, aims to grant tax incentives of up to R$ 7.2 billion but requires 100% of the consumed energy to come from renewable or low-emission sources.

The central concern is that excluding natural gas will hinder investment attraction for the states. Governor Roberto Cidade (União/AM) advocates for leveraging his state’s vast natural gas reserves and robust infrastructure. Meanwhile, Fábio Mitidieri (PSD/SE) focuses on production expansion through the Sergipe Deepwater project. The decision on whether natural gas qualifies as “low emission” awaits an inter-ministerial ordinance, with intense discussions ongoing in the Chief of Staff’s Office (Casa Civil).

MPTCU Requests Audit of Rare Earths Projects

Concurrently, the Federal Court of Accounts Public Prosecutor’s Office (MPTCU) has requested a comprehensive audit of rare earthsmining projects in the South of Minas Gerais. The request, made last Thursday, aims to verify federal agencies’ capacity to monitor the cumulative impacts of this activity.

The MPTCU‘s analysis focuses on the effects on water, soil, biodiversity, and public health, particularly given the region’s proximity to springs, aquifers, and former uranium mining sites. Additionally, the audit will investigate the oversight of the Financial Compensation for Mineral Resource Exploration (CFEM). This move comes shortly after the approval of the National Policy on Critical and Strategic Minerals (PNMCE), which established the National Council for the Industrialization of Critical and Strategic Minerals (Cimce) to manage the sector.

“The pursuit of technological advancement and the energy transition cannot neglect environmental and social impacts. It is crucial that public policies ensure a balance between the development of digital infrastructure and resource exploration, guaranteeing sustainability for future generations,” stated an expert from the electricity sector.

These two fronts – the discussion on the energy matrix for data centers and the oversight of rare earthsmining – are shaping Brazil’s path to consolidating itself as a hub for digital infrastructure and clean energy. The decisions made now will have significant repercussions on the national environment and economy. The future of energy and mining in the country will depend on the ability to harmonize growth with environmental and social responsibility, reinforcing the commitment to sustainability and a Net Zero Carbon future.