DECEMBER 12, 2024

Catamarca – Law No. 5,880 on Carbon Footprint Measurement, Offset, and Reduction

CIRCULARS

Environmental Law  and Climate Change Department Report | Catamarca – Law No. 5,880 on Carbon Footprint Measurement, Offset, and Reduction

On December 6, 2024, Law No. 5880 was published in the Official Gazette of the Province of Catamarca, establishing a comprehensive regulatory framework for measuring, offsetting, and reducing the carbon footprint within the provincial territory (the “Law”). Its primary objective is to measure the carbon footprint and implement targets for offsetting and reducing greenhouse gas (“GHG”) emissions. In line with international commitments and Law No. 27,520 (on minimum standards for climate change adaptation and mitigation), it seeks to ensure a sustainable low-carbon development model, foster climate-resilient communities, preserve ecosystems, and transition economic activities toward sustainable practices.

The Law applies to individuals and legal entities, whether public, private, or mixed, domestic or foreign, as well as nonprofit organizations engaged in industrial, energy, agricultural, livestock, transportation, or mining activities within the province, as determined by the regulations. Voluntary adherence is also permitted for those wishing to benefit from the provisions of the Law.

Key highlights of the Law include:

-The obligation to measure and report direct and indirect GHG emissions through sworn statements, following international standards such as ISO-IRAM 14064, the GHG Protocol, and the IPCC guidelines. This information will be publicly accessible and subject to regulations that will define the technical and methodological parameters. The form and frequency will be determined by the regulations.

-The requirement for covered entities to develop gradual plans for reducing GHG emissions and increasing carbon sink absorption.

-The duty of the Province and Municipalities to promote activities aimed at increasing and conserving carbon sinks.

-The implementation of a “carbon footprint offset credit” system, awarded to those engaged in forestry or agricultural activities with a positive carbon footprint as determined by the regulations.

-The authority of the regulatory body to establish a Carbon Credit Trading System and regulate a scheme of voluntary carbon credit markets.

-The creation of the “Provincial Carbon Footprint Offset Fund,” designed to finance environmental plans, programs, and projects focused on GHG mitigation and climate change adaptation. This fund will be composed of public and private contributions, revenues from the credit system, and penalties derived from the infraction regime.

-A sanction regime that includes fines of up to 2,800,000 tax units (“UT”) and temporary disqualifications from operating state-owned assets for serious or very serious violations, such as falsifying emission reports or failing to comply with established measurement standards.

We remain at your disposal for any additional information you may consider necessary

Yours sincerely,

Manuel Frávega