By Marina Grossi for Estadão*

While the world today discusses the climate emergency and the multiple advantages of biofuels for decarbonizing the transportation matrix, Brazil has 50 years of experience that deserves to be shared. The oil crisis of the 1970s, caused by a supply shock, spurred the country to seek alternative solutions—the most prominent example being Proálcool. Considered a landmark program, this program became the world's largest initiative to replace fossil fuels with renewable biofuels, through the production of sugarcane for ethanol production and the development of fuel-adapted car engines. 

Proálcool left an important legacy for the sector's development in Brazil, which is reflected in the importance of biofuels in the lives of Brazilians: today, the country consumes more than 30 billion liters of biofuels, representing 23% of the energy matrix. If we add electricity production from biomass—such as sugarcane residues, cellulose residues (lye), and biogas—this share rises to 30% of the national matrix, according to a study by the Bioeconomy Observatory of the Getulio Vargas Foundation (FGV). 

Our expertise with sugarcane also paves the way for the development of more advanced biofuels, such as second-generation ethanol, obtained from sugarcane biomass, and SAFs—sustainable aviation fuels, which can be produced through various routes. Among them, a promising technology is ATJ (alcohol-to-jet), which uses ethanol as a feedstock. Another promising biofuel is HVO (hydrotreated vegetable oil), green or renewable diesel, which has a composition similar to fossil diesel but is produced from vegetable oils such as soybean and palm. 

This vast array of solutions to decarbonize both the national and global energy matrix places Brazil among the countries in the world with the greatest potential to lead the energy transition, with positive impacts for the Brazilian economy. According to projections from the McKinsey consultancy, these technologies, combined with generation from renewable sources, could add US$100 billion to our Gross Domestic Product (GDP) by the beginning of the next decade. In the biofuels field alone, the opportunity for Brazil is a US$100 billion market by 2040, with the most promising trends being HVO, second-generation ethanol, and SAF, in addition to biomethane. 

Global demand for biofuels is expected to double by 2030, according to projections from the International Energy Agency (IEA). As the second-largest biofuel producer, behind only the United States, Brazil is poised to be at the forefront of this competitive landscape and a global supplier for the demand that is expected to increase within ten to fifteen years. We face a unique opportunity for the sustainable expansion of the sector and to help leverage and accelerate this transition globally. To achieve this, action will be needed on three main fronts: regulation; research, development, and application of technologies; and fuel supply to meet growing demand. 

In this regard, a recent study by the Coalition for the Decarbonization of Transportation—an initiative led by CEBDS, Motiva, the National Transportation Confederation (CNT), and Insper's National Observatory for Sustainable Mobility, and involving more than 50 industry entities—shows that increased use of biofuels, especially in heavy-duty vehicles and aviation, could reduce greenhouse gas emissions projected for the transportation sector by up to 60% by 2050. Combined with other measures, such as fleet electrification and the rebalancing of freight modes, these solutions have the potential to attract more than R$600 billion in green investments. The Coalition proposes a robust action plan with 90 concrete levers to drive low-carbon mobility in Brazil.

In the area of domestic market regulation, an important step was taken with the Fuel of the Future Law, which promotes sustainable mobility and seeks to position the country in the energy transition, with programs and targets related to SAF, biomethane, and other biofuels, in addition to increasing the blending of ethanol and biodiesel into gasoline and diesel, respectively. In the case of sustainable aviation kerosene, for example, starting in 2027, airline operators will be required to reduce their carbon intensity through SAF, starting with a reduction of 1%, gradually reaching 10% in 2037.

But this movement shouldn't originate solely in Brazil. Globally, policymakers attending COP30 must be aware of the potential of biofuels for reducing greenhouse gas emissions and generating revenue. To this end, a group of organizations has formulated a manifesto with recommendations that will be presented to climate negotiators at the Belém conference. The document is signed by the Brazilian Business Council for Sustainable Development (CEBDS), the American Chamber of Commerce for Brazil (Amcham Brasil), the Brazil-China Business Council (CEBC), and the Climate and Society Institute (iCS). The text has already been delivered to three COP30 Special Envoys – myself, representing the Business Sector, Elbia Gannoum (Energy), and Roberto Rodrigues (Agriculture). 

The manifesto's main points include overcoming unjustified regulatory and trade barriers in the international trade of sustainable raw materials and biofuels; advancing the development of certification and traceability systems; harmonizing the concept of degraded areas internationally; promoting public policies to encourage the blending of biofuels in transportation; and overcoming the "food versus biofuels" dilemma, among other points. 

Holding COP30 in Brazil represents a unique opportunity to promote this agenda, which can generate significant social and economic impacts. Starting with job and income generation: the biofuels production chain already mobilizes a broad network of small, medium, and large rural producers, in addition to generating hundreds of thousands of formal jobs in rural and urban areas. It also brings economic dynamism and innovation, as it is a knowledge- and technology-intensive value chain that encourages local value addition. Finally, expanding the production of sustainable biofuels can boost exports, tax revenue, and production chains in emerging countries. For economies with a strong agroenergy base—such as Brazil and several countries in Latin America, Africa, and Southeast Asia—sustainable biofuels can represent an affordable and rapidly implemented solution for advancing the low-carbon transition.

From the field to the pump, all the experience accumulated with Proálcool and other biofuels over the last 50 years gives Brazil the necessary foundation to be a global articulator and promoter of this agenda. Decarbonizing the transportation matrix is essential to achieving the climate goals of the Paris Agreement and for an orderly energy transition, with sustainability, security, and social justice. 

* Marina Grossi is president of CEBDS (Brazilian Business Council for Sustainable Development), an organization with 28 years of experience and 120 large member companies.