By Brazil Stock Guide – Brazil’s Chamber of Deputies approved on Wednesday (Oct. 29) the creation of the Special Sustainability Program for the Chemical Industry (Presiq), a R$15 billion ($2.6 billion) incentive framework designed to modernize plants, stimulate R&D, and cut carbon emissions. The bill, authored by Afonso Motta (PDT-RS) and reported by Carlos Zarattini (PT-SP), now moves to the Senate.
The new program will replace the Reiq, a special tax regime that had supported the sector for over a decade. Running from 2027 to 2031, Presiq will grant R$2.5 billion per year in credits for sustainable raw materials and R$500 million annually for modernization and innovation projects. Benefiting companies, like Braskem and Unipar, must maintain 2022 employment levels and allocate part of their credits to research and technology.
According to the Brazilian Chemical Industry Association (Abiquim), the program could add R$112 billion to GDP by 2029, generate 1.7 million jobs, and lift industry utilization rates from 64% to 95%. “The approval restores confidence and signals that Brazil wants to compete at a high level,” said Abiquim CEO André Passos Cordeiro. “When chemistry grows, the whole economy moves.”
The chemical sector accounts for 11% of Brazil’s industrial GDP, employs over 2 million workers, and faces a $48.7 billion trade deficit due to foreign subsidies and high domestic costs. Lawmakers framed Presiq as a pillar of the government’s “neo-industrialization” agenda, tied to low-carbon growth and the upcoming COP-30 climate summit
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