Brazil cuts biodiesel mandate for rest of 2022

Brazilian has signed into law a measure to reduce the country’s mandatory biodiesel content in diesel to 10% for this year – a setback for biofuels and oilseeds producers. Brazil was supposed to adopt a 14% biofuel mix in diesel from March, but its National Energy Policy Council (CNPE) decided to keep a 10% content due to high soybean prices and its potential impact on the final price of diesel.

In September, CNPE lowered the minimum biofuel content requirement to 10% from the 13% requirement initially planned for 2021, Reuters reported.

Despite the CNPE’s decision, domestic biofuels and soybean crushers associations lobbied against a reduction of the minimum biodiesel requirement.

Francisco Turra, board chairman of the Aprobio biofuels lobby, told Reuters that the president would “certainly change his stance” as soon as he learned about the repercussions of the measure, while also expecting lawmakers of the biodiesel caucus to act on it.

However, the Bolsonaro administration confirmed that the biofuel content will be lowered to 10% throughout 2022, as fuel inflation has dented the president’s popularity.

Soybeans represent some 75% of biodiesel content.


Tags: Biodiesel, Biofuels, Brazil, NEPC
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