Brazil is the most advanced country in the world in the area of biofuels. In volume, it is the second largest producer of ethanol and biodiesel in the world and presents great potential for expanding the use of renewable resources in total energy consumption, considering other bioenergetics. However, the legal framework on which this market is based still presents many weaknesses. Thus, with the growing recognition of the role and importance of biofuels in the Brazilian energy matrix, the Federal Government announced, at the end of 2016, the launch of RenovaBio, a program that seeks to expand biofuel production in Brazil, based on predictability, environmental, economic and social sustainability and compatible with the market growth.
Under the coordination of the Ministry of Mines and Energy (MME), the program has four strategic axes, identifying opportunities to increase the competitiveness of the national industry. In early 2017, the MME opened a public inquiry for the evaluation and discussion of the general guidelines outlined for RenovaBio.
The RenovaBio regulatory model will be defined during 2017. During the period from February 15 to March 20, 2017, a public inquiry was held to evaluate the program guidelines. In June, the Energy Policy Board approved a resolution that consolidated the discussions raised by the public inquiry and formalized the program’s strategic guidelines.
The new measures meet the sector demand for the execution of public policies that guarantee the pricing of the positive externalities of the use of renewable fuels and that provide predictability for the resumption of investments. Among the proposals presented by the program is a mandate that limits annual emissions of greenhouse gases for light vehicles and establishes the tax differentiation between gasoline and ethanol as an important short-term policy.
Odebrecht Agroindustrial was present in the discussions since the onset of the policy formulation process, through sectoral forums, as a member of the Sugar Cane Industry Union (UNICA) Board, the participation in the meetings and the Ethanol Supply Table , an MME working group whose objective is to monitor and guarantee fuel supply in the country and to reflect on public policies for the sectors involved.G4-16
Internally, from the 2017/2018 harvest, we will begin the study of market strategies that may represent levers of financial value generation, based on the socio-environmental benefits of our products. With this bias, for instance, we follow the development and participate in the discussions for creating a national carbon pricing system.
In the scope of the operations, we will continue the improvement programs and will keep on increasing the productivity in the industrial and agricultural processes. Even though our performance development on this front has been ongoing, we are tireless in seeking new opportunities to increase the value and positive impacts we generate for all our audiences.