Deadline to participate in the ISS Neutro call for proposals
Until October 22, 2025
ISS Neutro is an initiative of the City of Rio, through the Municipal Secretariats of Economic Development (SMDE) and Finance (SMF), which created the largest municipal incentive in the world for the voluntary carbon credit market.
The project reduces the ISS tax rate for companies operating in the carbon credit market and located in Rio, and grants an ISS rebate as compensation to participating companies based in the city that purchase carbon credits to mitigate their greenhouse gas emissions. Thus, it fosters the development of this market as a whole, encouraging the creation of green projects, the trading of assets in this sector, and the arrival of companies that conduct everything from emissions inventories to transaction platforms, strengthening supply and encouraging companies to become more sustainable.
The green economy is an unmissable opportunity for Rio, and initiatives like this strengthen our city's leadership in this sector.
UPDATED DATA
9 qualified companies
Roughly 123 thousand retired carbon credits
CARBON CREDIT MARKET
O carbon credit is a tradable asset that represents 1 ton of carbon removed from the atmosphere or that has ceased to be emitted into nature. Thus, companies that demonstrate, through certified inventories, any of these actions sustainability process, can sell this asset on the market, which is currently voluntary. Companies that want to become more sustainable but find it difficult to reduce their carbon emissions can compensate by purchasing carbon credits.
This mechanism is essential for finance actions that make the world cleaner, rewarding those who promote sustainability and preserve the environment.
INCENTIVE FOR COMPANIES
O ISS Neutral is the largest municipal incentive in the world for the voluntary carbon credit market. The city of Rio benefits this sector two ways: companies in the carbon credit market pay ISS reduced from 5% to 2%, while those who offset their emissions will have discount on payment of municipal taxes. The total value of the incentive is up to R$60.000.000,00 per year.
The value of tax credits per tonne of carbon dioxide equivalent can be up to R$ 60 per ton, for carbon credit projects carried out in the city of Rio de Janeiro. For projects outside Rio, the value can reach up to R$ 30 per ton, limited, in both cases, to the amount paid by the company or to the ceiling per company and business group, established by the Municipality.
The maximum amount of tax credits per company, individually or as an economic group, is up to R$ 6 million. Companies that offset their emissions and are within this limit can offset 100% of their emissions inventory, potentially becoming “ESG at zero cost”.
Carbon market service providers entitled to ISS reduction
? Project developers
? Emissions Inventory Certifiers
? Audits
? Issuance and registration certification bodies
? Transaction Platforms
Requirements for joining ISS Neutro
Being an ISS taxpayer in the city of Rio
Carbon credit project to be used for offsetting and audited inventory of emissions prepared by companies established in Rio
MORE INFORMATION
COMPANY REGISTRATION
NEUTRAL ISS LAW (Law No. 7.907/2023)
NEUTRAL ISS DECREE (Rio Decree No. 53.288/2023)
AMENDMENT TO THE NEUTRAL ISS DECREE 2024
AMENDMENT TO THE NEUTRAL ISS DECREE 2025
PREVIOUS EDITIONS
CHANGE TO ISS NEUTRAL NOTICE 2024
