Brazil’s latest policy to boost biofuels use has improved the outlook for the industry in the country, according to Mario Lindenhayn, BP Plc’s chief executive for biofuels, in an interview with Reuters.
“We are very positive. This is a very important signal the country is giving, creating a stable regulatory environment that will allow companies to invest,” Lindenhayn said.
On Tuesday, 27 November, Brazil took an important step towards the successful regulation of its National Biofuels Policy, better known as RenovaBio, with the publication of resolution nº 758/2018 in the Official Gazette (DOU).
The board of Brazil’s National Agency of Petroleum, Natural Gas and Biofuels – ANP approved the resolution on 23 November 2018.
The resolution deals with the criteria for Certification of Efficient Production of Biofuels, the definition of requirements for the accreditation of inspection firms responsible for such certification and the standards for the calculation of the Energy and Environmental Efficiency Note of the biofuel producers that join the RenovaBio.
With the resolution, interested companies will be able to apply for accreditation as inspector firms to certify the efficient production of biofuels. Biofuel producers will be able to calculate their Energetic-Environmental Efficiency Notes through RenovaCalc and hire inspector firms accredited by the ANP to carry out the certification process of their production, which will result in the issuance of the Certificate of Efficient Production of Biofuels.
Certified producers will be able to request the emission of decarbonisation credits (CBIOs) to which they are entitled, which will be marketed in accordance with the regulations being developed. With that, biofuel producers will be able to issue and trade CBios that fuel distributors could buy to comply with targets in case they fall short. It would be Brazil’s first emissions reductions market, although limited to the fuels industry.
RenovaBio will mandate fuel distributors to gradually increase the amount of biofuels they sell. The program aims to double the use of ethanol by 2030 from around 26 billion liters currently. The program also targets increases for other renewables such as biodiesel.
You can access the resolution published in the DOU through this link.