Brazil: “Fuel of the Future” law to boost sustainable mobility in the country

During an event held at the Brasilia Air Base, Luiz Inácio Lula da Silva, President of Brazil, signed into law bill no. 528/2020 “Fuel of the Future”, which constitutes a framework for promoting sustainable mobility and achieving international greenhouse gas (GHG) emission reduction targets. The law establishes three programs:

• National Sustainable Aviation Fuel Program:

Starting in 2027, air operators will be required to reduce GHG emissions on domestic flights through the use of sustainable aviation fuel (SAF). Reduction targets will start from 1% and progressively increase to 10% over 10 years to 2037.

• National Green Diesel Program:

Brazil’s National Energy Policy Council (CNPE) will annually set the minimum amount, by volume, of green diesel to be added to fossil diesel. As of March of this year, this minimum amount is 14% and by 2030, it is expected to reach 20%.

• National Program for Decarbonization of Natural Gas Producers and Importers and Incentives for Biomethane:

This program seeks to promote research, production, marketing and use of biomethane and biogas in the country’s energy matrix.

In addition, the law establishes a gradual increase in the proportion of ethanol in gasoline, from the current 22% to 27%, with a final target of 35%. Although the Brazilian matrix already includes percentages of ethanol and biodiesel, the new regulation broadens its scope, integrating sustainable fuels for aviation and maritime transport and raises the blending percentages in fossil fuels.

Along with the passage of the law, seven companies signed letters of commitment for investments in the biofuels sector in Brazil.

Source: Government of Brazil