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Agriculture Americas Energy Ethanol Tax Policy

Director of Biofuels discusses RenovaBio in Sao Paulo

RenovaBio

Brazil’s RenovaBio program, a LCFS-like cap and trade program for road transport fuels, could take as long as eight years to be implemented, Miguel Pereira, Director of Biofuels of the Ministry of Energy said at an ethanol conference in São Paulo this week.

RenovaBio is an ambitious government plan which has been proposed by the Ministry of Energy in Brazil to boost domestic production of ethanol, while also staying on track to reduce carbon emissions by 2030.

If the bill, which has already been discussed by the Government, is considered provisional when it is sent to Congress, it could take effect as early as 2019 once the President has signed off on it. However, if the bill is sent as a draft to Congress, the time till its implementation will likely be considerably longer. If it is considered an emergency draft, it will probably be implemented by around 2022. If not, it may not come into force till as late as 2025 due to lobbying and opposition from Petrobras, Brazil’s state-owned fuel company, and other fuel distributors.

To read more in-depth analysis, please contact Patrick Meister at [email protected]

JFS 30/06/2017

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