Brazils new bio fuel policy boosting investment: Says BP

Brazil’s latest policy to boost biofuels use has improved the outlook for ethanol production and should attract new investment in plants, BP Plc’s chief executive for biofuels, Mario Lindenhayn, said. Brazil is advancing with additional regulation for the policy, called RenovaBio and expected to be enacted in 2020, he said, adding that he does not see signs that the government of President-elect Jair Bolsonaro, which kicks off in January, would put up any obstacles.

RenovaBio will mandate fuel distributors to gradually increase the amount of biofuels they sell. The program aims to double the use of ethanol by 2030 from around 26 billion liters currently. The program also targets other renewables such as biodiesel.

Brazilian oil and fuels regulator ANP published another part of RenovaBio complementary legislation, with rules for biofuel companies to obtain certification. With that, the plants will be able to issue and trade emissions reductions credits, called CBios, that fuel distributors could buy to comply with targets in case they fall short. It would be Brazil’s first emissions reductions market, although limited to the fuels industry.