After much debate, the so-called Future Fuels Law was sanctioned on Tuesday (8). The bill aims to enhance the use of biofuels and, through this, advance the decarbonization of transportation, putting the country at the forefront of combating intense climate change.
The initiative creates the legal framework for underground CO2 storage and a series of initiatives to promote decarbonization, sustainable mobility and energy transition in Brazil.
It also establishes that the margin for mixing ethanol with gasoline must be between 22% and 27%, and may reach 35%. Until then, the limit was 27,5%, with at least 18% ethanol.
For biodiesel blended with diesel, the percentage will change annually. Currently at 14%, it will increase by one point per year until reaching 20% in 2030.
A long-standing demand from the oil and gas sector, and ed by representatives of agribusiness, the bill was approved in March by the Chamber of Deputies. In September, it received approval from the Federal Senate.
The Fuel of the Future Act establishes programs to encourage research, production, commercialization and use of biofuels, with the aim of promoting the decarbonization of the transportation and mobility matrix. They are:
- National Sustainable Aviation Fuel Program: Starting in 2027, airline operators will be required to reduce greenhouse gas emissions on domestic flights by using sustainable aviation fuel (SAF). Targets start at a 1% reduction and gradually increase to 10% by 2037.
- National Green Diesel Program: the CNPE (National Energy Policy Council) will set, each year, the minimum quantity, in volume, of green diesel to be added to fossil-based diesel.
- National Program for Decarbonization of Natural Gas Producers and Importers and for Incentives for Biomethane: aims to stimulate research, production, commercialization and use of biomethane and biogas in the Brazilian energy matrix. The CNPE will define annual targets for reducing greenhouse gas emissions by the natural gas sector through the use of biomethane. The target will come into effect in January 2026, with an initial value of 1% and may not exceed 10%.
“Brazil is going to make the biggest energy revolution on planet Earth. There is no one to compete with the country,” said President Luis Inácio Lula da Silva, at an event at the Brasília Air Force Base, when the law was sanctioned.
The proposal was presented by the Ministry of Mines and Energy, whose head, Alexandre Silveira, considers the issue “a victory for Brazil”, as it represents a significant advance in policies to encourage the use of renewable fuels.
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