Regulation & Policy Aug 25, 2021 3:09 PM
The Mining and Energy Planning Unit (UPME) spoke about Law 2099 and the issuance of certificates for hydrogen and Carbon Capture, Use and Storage (CCUS) projects.
The UPME said that due to the lack of government regulation of Law 2099 of 2021 to define the evaluation criteria for certification, the UPME issued an external circular to those interested in the tax incentive regime applicable to Non-Conventional Energy Source (NCES) and Efficient Energy Management (EEM) projects, Valora Analitik reported.
The entity explained that this suspension will only cover projects related to hydrogen and CCUS.
“Until the technical guidelines that allow the UPME to define the evaluation criteria for certification are available, it will not be possible to receive and evaluate applications associated with this topic,” the entity said.
The External Circular was issued due to the need to have the regulation of Law 2099 to update the procedures and formalities associated with tax incentives, according to the UPME.
The entity said that it is necessary for the government to regulate several aspects of the Law to move forward on this issue.
Circular 000035 of 2021 sets out the changes that affect the procedures for the issuance of tax incentive certificates and informs interested parties of the actions to follow for their management.
The entity explained that the tax benefits for carbon capture, utilization and storage (CCUS) projects were extended.
Article 22 of the law determines that the tax benefits of income tax discount, VAT exclusion and accelerated depreciation will apply to CCUS projects.
Bottom-Line: The government is still working on updating and issuing regulations for new energy sources. This is a complex and delayed process, but authorities must accelerate the pace in this task to advance in the development of new technologies in Colombia.
The Curse of Santander continues to haunt Colombia. Or maybe it is the Curse of the Napoleonic Code.