Home Agribusiness Sanctioned law creating RenovaBio, Brazil’s new national biofuel policy

Sanctioned law creating RenovaBio, Brazil’s new national biofuel policy


Michel Temer sanctioned on  Wednesday (Dec.27 ) a law that creates the National Biofuel Policy (RenovaBio). It representes a victory for Brazil’s agricultural sector, which campaigned heavily for it.

The measure seeks to foster biofuel production in the country, fulfil Brazil’s commitments under the Paris Agreement and give more predictability to the market.

The new policy helps better define and highlight the strategic role of biofuels, especially when it comes to energy security and reducing greenhouse gas emissions.

According to the Ministry of Mines and Energy, the policy’s goals are threefold: to create tools for Brazil to fulfil the commitments it made under the Paris Agreement, to encourage the expansion of biofuel production, with a focus on achieving regularity of supply; and to ensure predictability in supply.

Biofuel markets needed clearer rules so that they could develop fully. In practice, the policy will promote energy efficiency gains and encourage the reduction of greenhouse gas emissions throughout the production and consumption chain.

Renewable energy

For Mines and Energy Minister Fernando Coelho Filho, this law reinforces the country’s commitment to renewable energy sources. “The RenovaBio law means a new boost to a sector that is a priority for the country and that needed a stimulus in the right direction,” he said.

Filho also explained that the RenovaBio creates an individual certificate for the producer, made to highlight how much each member of the industry contributes to reduce GHG emissions.


The law also creates a so-called Decarbonisation Credit Bond (or CBIO). This credit, according to the ministry, will be a financial asset. It will be traded on the stock exchange and issued by producers from the sale of biofuels. This means, in practice, another source of funding for entrepreneurs in the industry.