Area
Brazil
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/06/2020
Policy Category
Renewable energy
Policy Instrument
Bioenergy policies
Description
Between June and October 2020, concerned about possible shortfalls in biodiesel supplies stemming from reduced domestic soybean availabilities, the countrys regulatory agency for petroleum, biofuel and gas (ANP) repeatedly lowered the mandatory admixture rate of biodiesel in transport diesel from its statutory level of 12 percent to 10 percent. On 7 October, the agency approved a reduction in the blending rate from 12 percent to 11 percent from November through December 2020.
Notes
BRAZIL biodiesel policy: In August, concerned about potential shortages in soyoil and soyoil-based biodiesel amid a faster than expected rebound in domestic diesel consumption (following the slowdown caused by the coronavirus outbreak), Brazils National Petroleum Agency decided to temporarily lower mandatory admixture of biodiesel blended with transport diesel from 12 percent to 10 percent (see also MPPU July20). Reportedly, the lower blending requirement will remain in place until end-October. Industry sources estimate that each 1 percent increase in the countrys biodiesel-diesel blend corresponds to about 600 million litres of additional production per year.
