RenovaBio (English)

Instituted by Law 13.576/2017, the Brazilian National Biofuel Policy (RenovaBio) recognizes the strategic role of the biofuels (ethanol, biodiesel, biomethane, biokerosene for aviation and others) in the Brazilian energy matrix with regard to its contribution to energy security, the predictability of market and the mitigation of greenhouse gas emissions (GHG) in the fuel sector. In this sense, RenovaBio meets of Brazil’s Nationally Determined Contributions (NDCs) under the Paris Agreement. Its goal is to reduce the carbon intensity of the Brazilian transportation matrix by expanding the use of biofuels and creating a carbon credit market to offset emissions of greenhouse gases by fossil fuels.

RenovaBio is composed of three strategic axes. In the first one, annually the Government establishes national decarbonization targets for ten years, which are unfolded into mandatory individual targets for fuel distributors, proportional to their shares in the fossil fuel market. In the second axis, biofuel producers voluntarily certify their production and receive, as a result, energy-environmental sufficiency scores. These notes are multiplied by the volume of biofuel traded, resulting in the decarbonization credit (CBIO) that a producer can commercialize, which is the third axis.

One CBIO is equivalent to one ton of CO2eq avoided into the atmosphere.

The calculator “RenovaCalc”, a tool based on the life cycle analysis, measures the carbon intensity of biofuels (in g CO2 eq./MJ) and compares it to its fossil fuel equivalent, generating the “Energy & Environment Efficiency Score”.

Then, it can be stated that RenovaBio recognizes that different biofuels contribute differently to GHG emissions reduction, and those produced with lower carbon intensity (relative to liquid fossil fuel) will generate more CBIO per volume unit. Therefore, the more efficient and sustainable the individual production, the more CBIOs can be issued.

RenovaBio still establishes that, to be eligible, the biomass processed in the plants cannot come from the areas where there has been suppression of native vegetation. Additionally, biofuels producers must also demonstrate that biomass was produced in accordance with Brazilian environmental legislation, as demonstrated by the regularity in the Rural Environmetal Registry (CAR).