Brazil approves increasing biodiesel requirement from 12% to 14% in March

Alexandre Silveira, Brazil’s minister of mines and energy (left), alongside Brazil’s President Lula, arriving for the CNPE meeting at the Ministry of Mines and Energy (Photo: Ricardo Stuckert)

Brazil’s National Energy Policy Council (CNPE) approved Dec. 19 speeding up the nation’s increasing biodiesel-blending requirement from 12 percent to 14 percent in March, more than a year ahead of schedule.

In March 2023, Brazil approved moving to 13 percent biodiesel required in diesel fuel by April 2024, 14 percent in 2025 and 15 percent in 2026.

Now, the B15 mandate will also be brought forward to March 2025.

The expectation is that, with the measure, the emission of 5 million tons of CO2 into the atmosphere will be avoided.

In addition, increasing the biodiesel-blending requirement in the country’s diesel fuel will reduce Brazil’s petroleum-diesel imports by around 7.2 billion Brazilian reals (USD$1.47 billion).

The 42nd ordinary meeting of the CNPE, chaired by Minister Alexandre Silveira, was held at the Ministry of Mines and Energy and was once again attended by President Lula, in addition to vice president Geraldo Alckmin, state ministers and representatives of Brazil’s energy, oil and gas sectors, who are part of the council.

Lula defended investments in biofuels as important allies for the energy transition.

“Brazil is capable of producing high-quality and more sustainable fuels,” he stated. “We have to invest in the energy transition and transform Brazil into an active and proud country.”

Silveira highlighted the benefits of the measure.

“Today, we have expanded the share of biodiesel even further in our matrix,” he said. “And this has three effects. First, it reduces our dependence on imports of diesel oil. Secondly, it helps to decarbonize, since the ANP (National Agency for Petroleum, Natural Gas and Biofuels) has been making great progress in certifying the quality of biofuels. And third, and very important, is for us to stimulate our national agriculture.”

With the growth in demand for biodiesel, it is estimated that around 14,000 jobs will be created by 2024, in addition to increasing national energy security, with a reduction in imports of 2.4 billion liters (634 million gallons) of diesel.

When B15 is adopted next year, the increase in demand of raw material, especially soybeans, will be 6 million tons.

The CNPE also approved the temporary suspension of biodiesel imports, reversing the previous government’s decision.

Furthermore, a working group was established to prepare a regulatory-impact analysis to assess the impacts of biodiesel imports.

“We also decided to create a working group to study the impacts of imports approved by the ANP,” Silveira said. “Until the group completes the studies, we will be left with imports in the status quo, as they are today. Brazil continues to defend local content [and] national biodiesel.”