SAO PAULO: Brazil President Luiz Inacio Lula da Silva approved legislation establishing a legal framework for low-carbon hydrogen, but vetoed language that would have granted certain tax credits.

The framework, which takes effect Jan 1, seeks to attract and encourage investment in the production of low-carbon hydrogen and its derivatives, increasing Brazil’s competitiveness in the international market, according to an extra edition of the Official Gazette published last Friday.

In a message to the president of the Senate, Rodrigo Pacheco, Lula said he consulted the Finance Ministry and the chief of staff, and both expressed support for the veto.

 - Bloomberg