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See the note on the CNPE resolution that maintains the 10% biodiesel blend until March 2023:
The Brazilian Union of Biodiesel and Biokerosene (Ubrabio) received with serenity the publication of the order from the Presidency of the Republic that deals with the resolution of the National Energy Policy Council (CNPE), published this Friday, November 25th.
The Presidency's order brings good news and bad news. The first of these is the partial acceptance of the sector's demands related to the non-inclusion of co-processed diesel in the biodiesel mandate. Our understanding has always been that co-processed diesel, also called H-Bio or RX diesel, sold in Brazil by Petrobras, cannot receive the same treatment as biofuels because it is mainly a fossil fuel, with an equal or lower renewable part. to 5% — a number that is still disputed.
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The introduction of a fossil fuel into the biodiesel mandate, as Petrobras wants, would be a huge setback not only for the biofuels sector, but for the country. A greater harm to society and biodiversity would be to accept Petrobras' demand, which asks for RX diesel to be eligible for issuing decarbonization credits within the scope of RenovaBio, which is an inconsistency in itself.
Therefore, Ubrabio congratulates the Presidency of the Republic for its sensitivity in having fully vetoed this acceptance that called for the introduction of this route within the mandate.
On a negative note, we regret, however, the maintenance of the 10% mixture of biodiesel and diesel in the months of January to March 2023, a decision that had already been contested by Ubrabio previously. We, as a sector, understand that it does not make sense to maintain the mixture at 10% when there are already conditions to increase production, especially due to the forecast of a super harvest of soybeans that will be harvested next year, estimated at 150 million tons.
On a negative note, we regret, however, the maintenance of the 10% mixture of biodiesel and diesel in the months of January to March 2023, a decision that had already been contested by Ubrabio previously. We, as a sector, understand that it does not make sense to maintain the mixture at 10% when there are already conditions to increase production, especially due to the forecast of a super harvest of soybeans that will be harvested next year, estimated at 150 million tons.
Therefore, we reinforce that Ubrabio and the other entities that make up the Mixed Biodiesel Parliamentary Front (FPBio) will continue discussing with the current government and the transition team of the elected government so that the mixture increase curve can be restored as soon as possible. We will even defend the repeal of the measure that establishes the B10 for the months of January to March, as well as the introduction of a calendar for increasing this mixture, in order to provide the market and society with predictability and legal certainty.
The sector is prepared to produce 14% and we understand that we need, as soon as possible, to create a schedule to move forward with this mixture, which will only benefit society.
Our message is to demonstrate to the powers that be that biodiesel is not merely a biofuel. Biodiesel brings environmental advantages, with reduced carbon emissions; economic, with the strengthening of agroindustry and regionalization of production; and social, with incentives to create jobs in family farming. Biodiesel is also an ally in protecting public health, as more biodiesel means less consumption of fossil diesel, a fuel that emits pollutants and causes countless damages to public health through hospital admissions and absence from work.
Finally, Ubrabio reinforces that its greatest strength is dialogue, which will continue to be our working tool whether with the current government or with the transition team of the elected government.
Source: Notícias Agrícolas
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