When Brazil's National Solid Waste Policy went into effect in 2010, only 12% of plastic waste was recycled and less than 4% re-entered the production chain. In the absence of specific objectives for managing plastic waste, businesses tended to discard packaging that was difficult to separate, leaving the task to waste collector cooperatives without proper compensation. With the passing of Decree 12.688 on October 21, 2025, Brazil ushered in a new era of plastic waste management. The new regulations put the National Solid Waste Policy into practice by establishing a Reverse Logistics System for Plastic Packaging, laying out a gradual but obligatory pathway to the recovery and re-use of recyclable materials by 2040. 

For the past several years, Fundación Avina has supported Movimento Nacional dos Catadores de Materiais Recicláveis (Brazil's national recycling collector movement, or MNCR) and regional recycler networks to expand the social capital and legitimacy of these organizations. This positioned them to work with other stakeholders to provide input on the contents of the decree. In collaboration with the Brazilian Ministry of the Environment and Climate Change and related agencies, these networks advocated for social and economic inclusion, fair procurement practices, and transparent traceability to be incorporated into the final text. 

The reverse logistics system applies to multiple sectors and distributes responsibilities along the entire production chain, from manufacturers and importers to the end consumer, requiring coordination between producers, municipal governments, and waste collector cooperatives. The decree prohibits waste from being transferred to cooperatives without a contract in place and adequate payment, shifting responsibility for the final destination of waste to manufacturers and importers. 

This is not the only innovative aspect of the new regulations. They also call for a digital, trackable governance system based on audited electronic invoices and linked to the National System for Solid Waste Management Information. Each ton of plastic circulating in the system must be accounted for in this mechanism designed to elevate transparency to an unprecedented level. Traceability, annual reporting, and verification by independent auditors amount to the strictest recycling compliance standards Brazil has ever seen. 

The decree also utilizes financial instruments created in 2023, including Certificates of Credit for Reverse Logistics Recycling and for Structuring Packaging and Recycling. These credits have the power to transform recycling into an economically viable, measurable, and profitable enterprise, attracting investors and, for the first time, enabling waste collector cooperatives to be hired and compensated directly for their services. 

The passing of this decree was a watershed event, creating a virtuous cycle where shared environmental responsibility generates measurable economic benefits, promotes sustainability, and strengthens social inclusion.