On January 14, 2021, the Federal Law No. 14,119 ("Law") establishing the National Policy of Payment for Environmental Services ("PNPSA") was published. 

The PNPSA defines environmental services as "individual or collective activities which benefit the maintenance, recovery or improvement of ecosystem services" (such as provision services, e.g. water; support services, e.g. pollination; regulatory services, e.g. carbon mitigation; and cultural services, e.g. tourism). 

Between private entities, the payment for environmental services is voluntary and can occur in several ways, from simple monetary payment to (i) emission of green bonds, (ii) compensations linked to certification for reducing emissions from deforestation and degradation, such as REDD +, (iii) environmental quotas foreseen on the Forestry Code (CRAs), and (iv) provision of social improvement to rural and urban communities, among other modalities. 

The PNPSA also established the Federal Program of Payment for Environmental Services ("PFPSA"), regarding the payment for environmental services by the Federal Government, which will have as a priority the services provided by traditional and indigenous communities and family agribusiness, but it might also be applied to private properties, observing the legal requirements. 

The rules related to environmental services agreements will be regulated by decree. 

Veirano's environmental team is highly experienced on the subject and is available to provide further clarification.