In a letter sent to the President of the Republic, Michel Temer, this Thursday (27/07), the below50 – hub South America defended the advancement of the RenovaBio – 2030 Program with the objective of leveraging the biofuels sector in Brazil. Check out the full document signed by the president of CEBDS, Marina Grossi, below.
Rio de Janeiro, July 27, 2017
For: Your Excellency Mr President of the Republic
Subject: Position on the advancement of the RenovaBio Program
The below50 – South America hub supports and defends the advancement of the RenovaBio Program – 2030. With the aim of leveraging the biofuels sector in Brazil, the set of measures to be presented by the federal government contributes significantly to achieving the goals set by the country in the Paris Agreement.
The Nationally Determined Contribution (Brazilian NDC) foresees an increase in the share of sustainable biofuels in the Brazilian energy matrix to approximately 18% by 2030, based on the expansion of biofuel consumption; increasing the supply of ethanol, including through an increase in the share of advanced biofuels (second generation); and the increase in the proportion of biodiesel in the diesel mixture. This represents the need to grow from 28 billion liters of ethanol – produced annually today – to around 40 billion liters in the next 13 years.
The biofuels market has already shown that the target is achievable, when it managed to double its ethanol production in the last decade, but to achieve this it is necessary to establish long-term, adequate and stable public policies.
RenovaBio 2030 meets these expectations. The initiative is from the Ministry of Mines and Energy (MME) and is part of the dialogue between the government and agents operating in the energy market to plan short, medium and long-term actions. The program received contributions through the recently held Public Consultation.
The central objective of the plan is to redefine the role of biofuels in the energy matrix, by encouraging the expansion of their production in the country, mainly ethanol, biodiesel and biomethane. This expansion would be based on ensuring predictability, providing security to investors; competitiveness, providing incentives and correcting market distortions that currently favor the use of fossil fuels; and environmental, financial and economic sustainability, aligning with the transition process to a low-carbon economy.
Furthermore, RenovaBio represents the starting point for the configuration of a possible carbon market in the country, as it provides for the certification of reduced greenhouse gas (GHG) emissions from biofuels. This opens the door to consolidating the discussion around carbon pricing in the national economy.
According to the study Opportunities and Challenges of the Brazilian NDC goals for the business sector, prepared by the Brazilian Business Council for Sustainable Development (CEBDS) with the support of We Mean Business – a coalition of business organizations, represented in Brazil by CEBDS -, the Ensuring the free competitiveness of biofuels on the market is one of the business opportunities that emerge with the climate commitments made by the country. By benefiting from the expansion of the use of biofuels, two central sectors will be directly benefited from the reduction of greenhouse gas emissions: transport and energy.
Brazil is the second largest ethanol producer in the world and has one of the greatest potential for biodiesel and biogas production. Still, the low participation of bioenergy in the Brazilian energy matrix signals a great opportunity for the growth of this market in the country. The advantages are numerous: increased energy security; reducing dependence on oil imports; generation of employment and income in rural areas; boosting the economy; and reduction of greenhouse gas emissions.
With long-term public policies that value bioenergy in the country, our country will have the unmissable opportunity to transform energy supply in a safe, sustainable way and without losing competitiveness. What's more: by strengthening the biofuels sector and with the extremely favorable conditions for its production in Brazil, our country can become the most important player in the international market.
RenovaBio is another step that must be taken towards recognizing the mitigating potential of biofuels. Therefore, below50 and its partners are in favor of the program and recommend its implementation to the federal government through a provisional measure.
Cordial greetings,
Marina Grossi
President of CEBDS
