Approved by the National Congress in 2010, the National Solid Waste Policy encourages practices aligned with the concept of the circular economy, such as reverse logistics and selective collection, which can drive progress in recycling materials and broaden the possibility of new initiatives in the sector. Even so, effective implementation of the law runs up against limited infrastructure, especially in smaller municipalities.

Among the difficulties, the deadline for ending open dumps expired on the 2nd, but these sites continue to be sources of contamination and are also an embarrassment for Brazil’s ambitions as a leader on the environmental agenda, one year before COP30, which will be held in Belém (PA). To better understand the context surrounding the legislation, Esfera Brasil spoke with experts in infrastructure and environmental law.

For lawyer Daniel Almeida Stein, infrastructure partner at Giamundo Neto Advogados, the law offers a strong incentive for consortium-based solutions, given the economies of scale for the economic sustainability of projects and the multiplied impact on the environment, but harmonizing federal, state, regional and municipal waste policies and the interests of the respective public entities is a major challenge for structuring projects.

“Other challenges are defining the scope of services in a possible contract, given the many fronts that the waste issue covers, and reconciling interests in setting tariffs for the services, since currently, in many municipalities, the service is not charged for or is charged very inefficiently,” he explained.

Reducing red tape

A concept increasingly present in debates on sustainability public policies, the circular economy involves reducing 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 in environmental and tax matters, needs to encourage waste to return to the production chain.

“In environmental matters, this can be done by reducing unnecessary red tape that still applies to some waste handling and management operations. In the tax field, it is necessary to ensure treatment that encourages economic agents to recycle, reuse and purchase recycled goods. Currently, in some cases, the exact opposite exists. Purchasing goods in this condition is more expensive and more complex,” he stressed.

Regulating the sector and encouraging the circular economy also hold opportunities for new businesses. “Much of what is discarded and considered worthless has great economic value and, by redefining this concept through recycling and reuse, the main impact is less pressure to exploit natural resources,” says lawyer Ana Chagas, partner in the Environmental Law, ESG and Climate Change practice at Simões Pires Advogados.

“We have seen growing public awareness about consuming more sustainable products, and greater investment in environmental education programs to raise awareness of the importance of proper waste management can increase demand for sustainable products and services. A well-informed society tends to support and buy from companies that adopt sustainable practices,” the lawyer added.

Originally published by Exame (in Portuguese).