The approval of the Future Fuel Bill signals an important step in Brazil’s energy journey towards a greener future that is less dependent on fossil fuels. This legislative proposal, which is currently under discussion in the Senate, focuses on encouraging the production and consumption of renewable energy, highlighting fuels such as green diesel, biomethane and sustainable aviation fuel (SAF).
The new legislation aims to increase the presence of ethanol in gasoline and biodiesel in diesel, strategies that contribute to reducing greenhouse gas emissions and promoting more environmentally friendly agricultural practices. In addition, it also proposes the creation of national programs that encourage the advancement of next-generation renewable fuels, such as green diesel and SAF, with the clear objective of reducing the carbon footprint in sectors such as aviation. This legislative move has several repercussions, both for the automotive sector and for the end consumer, requiring adaptations to vehicle engines that, in the short term, can increase production costs and, consequently, car prices. However, in the long term, consumers are expected to benefit from reduced fuel costs and lower pollutant emissions.
The implementation of this law will benefit the country by reducing greenhouse gas emissions, strengthening sustainable agriculture, generating jobs and income, and improving energy security. The growing demand for raw materials needed for the production of biofuels, such as sugarcane, vegetable oils and agricultural residues, is expected to boost the commodities market and encourage investment in the agricultural sector.
Brazil's global potential in biofuels
With its history of global leadership in ethanol production, Brazil has great potential to play a leading role in the production of other biofuels. However, global competition, especially with other countries such as the United States, the European Union and Indonesia, is fierce. It is crucial that Brazil continues to invest in research and development to increase efficiency and reduce costs in biofuel production, while ensuring the environmental and social sustainability of this process.
Brazil currently has the capacity to establish itself as one of the largest producers of second-generation biodiesel, using agricultural and forestry waste as inputs, meeting the growing demand for sustainable fuels from the European Union. However, to capitalize on this opportunity, it is essential that Brazil certify the sustainability of its biofuels, an indispensable requirement for accessing the global market. This requirement, increasingly valued in the energy policies of several countries, proves that production was carried out in an environmentally appropriate, socially fair and economically viable manner.
With vast potential in biofuels, Brazil sees certification as an opportunity to solidify its presence on the global stage and add value to its products. By ensuring traceability of the entire production process, from raw materials to the finished product, certification proves that Brazilian biofuels meet the highest standards of quality and sustainability.
International certification and the future of fuel
Several certification systems have already been established internationally, each with its own criteria. For example, ISCC (International Sustainability & Carbon Certification), RSB (Roundtable on Sustainable Biofuels) and Bonsucro are among the most recognized. Furthermore, these protocols assess factors such as the origin of raw materials, the energy efficiency of the production process, greenhouse gas emissions, social impacts and workers' rights. Therefore, to obtain international certification, the entire production chain, from farmers to processing plants, needs to make a comprehensive commitment. Therefore, implementing environmental and social management systems, continuously monitoring sustainability indicators and training employees are essential steps.
In short, the Fuel of the Future Bill establishes a crucial milestone for the biodiesel sector in Brazil. By defining a clear and predictable legal framework, the bill creates a more favorable environment for investment and innovation in the sector. Increasing the proportion of biodiesel in diesel will stimulate demand and production, encouraging new industrial units. At the same time, growing global concern about climate change and the search for cleaner and renewable energy sources is driving demand for biodiesel in several countries, offering new opportunities for Brazilian producers in the foreign market.
By Diogo Carvalho | After-sales Assistant at Oleochemical Products
Review by Vanessa Ferreira
