AreaBrazil

Commodity GroupBiofuels

CommodityBiodiesel

Date01/09/2021

Policy CategoryRenewable energy

Policy InstrumentBioenergy policies

DescriptionRaised, for the months of September and October 2021, the country’s blending mandate for biodiesel mixed into conventional diesel from 10 percent to 12 percent – thereby keeping the blending rate below the target level of 13 percent set in Brazil’s 2019 bioenergy roadmap. Also announced that, for the months of November and December 2021, the blending requirement would revert to 10 percent, as persistently high soybean prices continued weighing on biodiesel production costs, eventually hurting end consumers.

NotesBRAZIL – biofuel policy: After considering to restore the country’s mandatory 13 percent biodiesel blending rate on 1 September 2021 (see MPPU June’21), eventually, in June, the Government decided to set the rate at 12 percent for the months of September and October 2021, with a view to containing the increase in the price of diesel for end-consumers. During the past 12 months, surges in the price of soyoil – Brazil’s main biodiesel feedstock – had prompted successive, temporary reductions in the country’s blending mandates. According to the new policy guidelines adopted in late 2019, Brazil’s mandatory blending rate is scheduled to shift to 14 and 15 percent in, respectively, 2022 and 2023 (see MPPU Jan.’20). In September, citing persistently high commodity and energy prices, The Government refrained from reinstating the 13 percent blending mandate for biodiesel mixed into transport diesel; instead set the admixture level at 10 percent for the months of November and December 2021.