Area
Brazil
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/11/2019
Policy Category
Renewable energy
Policy Instrument
Biofuel policy
Description
Approved an increase in the nationwide biodiesel blending mandate from 11 percent to 12 percent, effective 1 March 2020. Thereafter, blend levels would rise by a further 1 percentage point each year, until they reach 15 percent in March 2023.
Notes
BRAZIL biofuel policy: Further to the recent increase in the countrys nationwide biodiesel blending mandate from 10% to 11% (see MPPU Sep.19), in November, the Brazilian Government approved raising the mandate to 12%, effective 1 March 2020. Thereafter, blend levels would rise by a further one percentage point each year, until they reach 15% in March 2023. The new policy is expected to boost local demand for soyoil, the countrys main biodiesel feedstock. Industry sources project Brazils 2020 biodiesel production at 5.1 million tonnes, which would translate into a soyoil uptake of about 5 million tonnes a level equivalent to nearly two-thirds of Brazils 2019 supply. Looking further ahead, in 2028, official sources project biodiesel production to reach 9.7 million tonnes, based on current forecasts of national diesel consumption and a biodiesel blending rate of 15%. Meanwhile, Brazils oil and fuels regulator, ANP, has launched tests with diesel motor fuels containing 2030% biodiesel.
