Law n. 14.119/2021 established the National Policy of Payments for Environmental Services (PNPSA, in the Portuguese acronym), aimed at promoting conservation initiatives related to the maintenance, recovery and improvement of ecosystems. It is designed to foster private sector participation as both provider and payer.
Approved by the National Congress on December 2020, the Federal Government sanctioned Law n. 14.119/2021, establishing the National Policy of Payments for Environmental Services (PNPSA, in the Portuguese acronym), under the supervision of the Environmental National System (SISNAMA)’s Central Body at the Ministry of Environment (MMA).
The PNPSA aims at promoting conservation initiatives related to the maintenance, recovery or improvement of vegetation, habitats, and hydric resources, as well as the development of biodiversity corridors. Those initiatives are regarded as services, which are classified in article 2. The article also defines the roles of service payer and service provider, which may be performed by individuals and legal persons from the public or private sectors.
The PNPSA is comprised of 14 objectives related to the conservation of the environment and the development of sustainable economic activities (article 4), and of 12 directives that, among other guiding principles, aim at fostering private sector participation both as a provider and payer (article 5). The law established six payment modalities for environmental services, including green bonds (article 3).
Additionally, to provide federal government payments for those services, the law established the Federal Program of Payments for Environmental Services (PFPSA, in the Portuguese acronym), also under the supervision of SISNAMA’s Central Body. The participation criteria are established in article 6 and include the formalization of a specific contract between provider and payer (federal government), further detailed in the law.
