RenovaBio, the program which is set to regulate the biofuels sector in the country and help Brazil achieve its decarbonisation targets for 2030, was introduced in the Brazilian Congress as a bill on Tuesday, and could potentially take effect as early as July 1st, 2018.
The country’s biofuels sector had been craving for this program which, according to sugarcane association UNICA, will make the market more predictable, boost investments and production and rescue the domestic biofuels sector from its dependence on government subsidies and fiscal waivers.
When RenovaBio is implemented, certified producers and importers will be issued decarbonisation credits called CBios, which will be sold and bought on an exchange. Fuel distributors will need to purchase credits or physical product in order to achieve their individual decarbonisation goals.
For more information about RenovaBio and Brazil’s path to decarbonization sign up for a trial of PRIMA’s International Ethanol Report by contacting Fiona Ribbins at [email protected]