27/07/2023

BVRio conducts analysis of Decree on reverse logistics credits

BVRio, as a pioneer in creating the reverse logistics credits system with over a decade of practical experience, has conducted a thorough analysis of Federal Decree 11.413/2023. The new regulation, which came into effect in February this year, represents a significant advancement in sustainable solid waste management in Brazil, with a notable focus on the entire reverse logistics chain and active participation of various stakeholders, crucial elements to maximise the environmental and socio-economic benefits of the credit system.

The analysis scrutinised the new credit modalities and the new definitions and rules introduced by the Decree regarding comprehensive reverse logistics, the plurality of systems, and the actors involved. Analyzing and disseminating best practices is essential to promote the effective and appropriate implementation of reverse logistics credits and drive sustainable solid waste management in the country.

Mauricio Moura Costa, BVRio CEO and co-founder, emphasised the relevance of the Decree for consolidating credits as a financial tool to enable Payment for Environmental Services in the context of reverse logistics. “While it represents a significant milestone, we believe that implementing the Decree will face practical challenges. Reverse logistics chains are complex and involve various actors and systems, requiring effective collaboration between companies, regulatory agencies, and waste picker organisations to ensure the mechanism’s success.”

Over the years, the concept of reverse logistics credits has been widely adopted in Brazil, becoming a fundamental part of the solution for companies needing to comply with environmental legislation and essentially promoting the vital role of waste pickers. Using electronic invoices to sell recyclable materials as supporting documentation, the mechanism directs resources to collection and sorting services, contributing significantly to environmental preservation and supporting waste picker organisations.

As part of our ongoing commitment to more efficient and sustainable waste management, BVRio provides Guidelines for Best Practices for credit systems, reinforcing an inclusive and transparent approach to leverage the circular economy in Brazil.

Read the analysis (available in Portuguese).