The Brazilian Senate (Senado Federal) has approved a bill to set up the RenovaBio programme (Política Nacional de Biocombustíveis), which aims at increasing the use of biofuels throughout the country. The bill gives Brazilian fuel distributors targets to cut carbon emissions based on certificates issued by biofuel producers, which they are expected to meet by selling increasing volumes of ethanol and biodiesel over the coming years. Besides, it would enable distributors to sell and buy the required certificates on a secondary market to meet the emissions targets.
RenovaBio is meant to help Brazilian ethanol producers, who are struggling to compete with gasoline, and could result in raising the ethanol domestic demand of 40 billion litres by 2030, from 27 billion litres in 2017. Brazil is the second largest producer of biofuels in the world but had no specific biofuel legislation so far. The legislation is considered as a milestone in the biofuels sector legislation and will help Brazil to reach its COP21 target of reducing greenhouse gases by 43% in 2030 from 2005 levels.
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