Brazil sets caps on GHG emissions

Brazilian President Jair Bolsonaro approved the resolution of the National Energy Policy Council (CNPE) defining the annual mandatory targets for reducing greenhouse gas emissions for the commercialization of fuels over the next ten years, under the National Policy for Biofuels (Renovabio), Agencia Brasil reported Tuesday after the measure was published in the Diário Oficial da União (Federal Official Gazette).

The resolution sets the value of the overall target for the period between 2023 and 2032, as well as the tolerance intervals. By 2023, distributors will have to acquire 37.47 million decarbonization credits (CBIOs).

For the 2024/2031 period, there was no change in the goals that had already been set by the CNPE in October 2021, but there was an addition of values for the year 2032, now set at 99.22 million CBIOs.

The decarbonization credits are part of the RenovaBio program, which determines that liquid fuel distributors have a mandatory target for reducing greenhouse gas emissions.

Credit is issued by producers and importers of biofuels, duly certified by the National Agency of Petroleum, Natural Gas and Biofuels (ANP).

The volume to be purchased by the distributors is based on the fuel purchase and sale invoices. The annual decarbonization target for companies selling fossil fuels is calculated by the ANP.

Acquiring CBIOs is the only way to reach the targets. According to the Ministry of Mines and Energy, one CBIO is tantamount to one ton of avoided emissions, which represents seven trees in terms of carbon capture.