Brazil adopts its National Biofuel Policy (RenovaBio)
Type of post: NEWS IN BRIEF.
And we continue to catch up with news in brief of the end of the last year. This is important to the future development of the biorefining sector in Brazil. President Michel Temer sanctioned a new law on 27th December creating the National Biofuel Policy: RenovaBio (Lei Nº 13.576, de 26 de dezembro de 2027). It should be pointed out that this country is the second largest biofuels producer and consumer. In 2017, Brazil produced 27.7 billion liters of ethanol and 4.2 billion liters of biodiesel.
And we continue to catch up with news in brief of the end of the last year. This is important to the future development of the biorefining sector in Brazil. President Michel Temer sanctioned a new law on 27th December creating the National Biofuel Policy: RenovaBio (Lei Nº 13.576, de 26 de dezembro de 2027). It should be pointed out that this country is the second largest biofuels producer and consumer. In 2017, Brazil produced 27.7 billion liters of ethanol and 4.2 billion liters of biodiesel.
According to the Ministry of Mines and Energy, the
policy's goals are threefold:
- to create tools for Brazil to fulfil the
commitments it made under the Paris Agreement;
- to encourage the expansion of biofuel
production;
- to ensure predictability in supply.
Those are three key points of RenovaBio:
- It outlines a strategy to recognize the role
of all of the types of biofuels (ethanol, biodiesel, biomethane, biojet…) in
the Brazilian energy mix.
- It creates an individual certificate for the
producer, made to highlight how much each member of the industry contributes to
reduce GHG emissions.
- It creates a so-called Decarbonisation Credit Bond (“Crédito de Descarbonização” or CBIO). This credit will be a financial asset. It will be traded on the stock exchange and issued by producers from the sale of biofuels. This means, in practice, another source of funding for entrepreneurs in the industry.
- It creates a so-called Decarbonisation Credit Bond (“Crédito de Descarbonização” or CBIO). This credit will be a financial asset. It will be traded on the stock exchange and issued by producers from the sale of biofuels. This means, in practice, another source of funding for entrepreneurs in the industry.
