Overview of Brazil’s Low Carbon Fuel Standard

Overview of Brazil’s Low Carbon Fuel Standard

Brazil Low Carbon Fuel Standard – 2020 Launch

In June 2019, the National Council for Energy Policy (CNPE) Resolution #15 approved the compulsory target to be met by fuel distributors for the 2020-2029 cycles.  In late December 2019, the RenovaBio program was officially launched (December 24, 2019).  The program ratifies the Brazilian government’s commitment to the Paris Agreement from 2016. The RenovaBio program is based on three main instruments:

1.     Annual carbon intensity reduction targets (CO2/MJ) for a minimum period of ten years.

2.     Certification of biofuels by efficiency in reducing GHG emissions.

3.     Decarbonization Credits (CBio).

Carbon intensity reductions in the transportation sector are expected to decline 10.2 percent to 66.1 g CO2/MJ by 2029 from a 2018 base CI of 73.6 g CO2/MJ. In order to guarantee the proposed targets, the Ministry of Mines and Energy (MME) estimated that 95.5 million CBios would need to be traded in 2029. Each CBio corresponds to one metric ton of carbon saved through the utilization of biofuels versus fossil fuels.

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03.01.2024

Cold, Winter Weather Impact January Soybean Crush

Cold, Winter Weather Impact January Soybean Crush

**Bob Lane was out of the office today and will return on Monday, March 4, 2024.**

U.S. soybean crushing volumes totaled 195 million bushels in January, the USDA reported on...

03.01.2024

Week Closes with Active Gulf Market

Week Closes with Active Gulf Market

Used cooking oil (UCO) traded as low as 39.5 cts/lb into the Gulf market with bids and offers heard in a wide range over the last 24 hours. Offers...

03.01.2024

Animal Proteins – Friday

Animal Proteins – Friday

The market was quiet today with no changes. 

Looking at the monthly averages in February, the markets were mixed in terms of price direction with intra-month volatility seen. 

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