July 14, 2024

On Friday the Energy Policy Council is discussing an increase in the mandatory blend of biodiesel in diesel | Policy

3 min read
On Friday the Energy Policy Council is discussing an increase in the mandatory blend of biodiesel in diesel |  Policy
On Friday the Energy Policy Council is discussing an increase in the mandatory blend of biodiesel in diesel |  Policy

The National Council for Energy Policy (CNPE) – responsible for advising the President of the Republic on the formulation of energy policy – will hold its first meeting in Lula’s government on Friday (17).

The meeting gained importance for three reasons:

  1. This will be the first meeting of the CNPE with a new composition – ministries that were not normally part of the council are now part of the college (See more below);
  2. President Luiz Inacio Lula da Silva attended the meeting;
  3. The increase in the mandatory percentage of biodiesel to be added to diesel will be discussed.

🛑 Currently, the mandatory addition of biofuels to fossil fuels is 10%, lower than the percentage specified in the National Biofuel Policy (RenovaBio).

The percentage cut was one of several measures adopted by the Bolsonaro government to lower the price of diesel.

In the midst of the war in Ukraine, the price of soybean oil—the main raw material for biodiesel—has skyrocketed. As a result, the higher the blend ratio, the greater the impact on the final price of the diesel.

▶ ️ Due to the policy of RenovaBio, suspended by the government, the The blending ratio should be 14% since March 2022 And I have It exceeded 15% in March this year.

Lula’s government has decided to keep the 10% percentage until next March to decide, at the CNPE meeting, a new schedule to increase biodiesel – more environmentally sustainable than diesel, a polluting fossil fuel.

CNPE Agenda

🔍 Although the CNPE agenda was not previously disclosed, the g 1 Find out that the Council will discuss this Friday will present to President Lula a proposal Increase the mandatory percentage of biodiesel added to diesel from the current 10% to 12% or 13%.

It will also be suggested to increase the mixture gradually in order to reach it 15% in 2025. These ratios were discussed in the technical meetings prior to the Ministerial Meeting of the National Atomic Energy Council.

However, the schedule may change, as it also depends on the industry’s ability to supply enough biofuels to market. But, as he found it g 1the hypothesis that there is no overmixing is excluded.

Controversy over confusion

The hypothesis of the non-existence of the increase has been raised, because the National Transportation Union (CNT) says that the potential increase in content “would generate additional costs for the freight value that would be transmitted to the entire population.”

According to CNT, the biodiesel fuel used in Brazil reduces the energy efficiency of bus and truck engines, which increases fuel consumption.

The Confederation had the support of entities representing automobile and machinery manufacturers, as well as fuel distributors and the association representing urban public transportation by buses.

Biodiesel producers (Aprobio and Ubrabio) challenge the CNT’s assertions. “In Brazil, no damage to machinery and engines through direct or indirect action of biodiesel use has been demonstrated,” the associations say, in a note.

They also say that the use of biodiesel “reduces emissions of particulate matter, carbon monoxide and hydrocarbons, and is shown in a large documentary base that biodiesel reduces atmospheric pollution and benefits the environment.”

When the government decides to increase the mix, it must adopt the same line of defense that the producers use, namely highlighting the social and environmental benefits of biodiesel. Decarbonization is one of President Lula’s commitments.

CNPE expansion

Also in favor of increasing the biodiesel mix is ​​the new configuration of CNPE.

Various council ministers have publicly expressed themselves in favor of lifting this mixture, such as Vice-President Geraldo Alcmene and Ministers Carlos Favaro and Renan Filho. The increase is also supported by environment-related portfolios.

By a decree issued at the end of February, the following ministries became part of the council:

  • Development, industry, trade and services
  • Agricultural development and family farming
  • Planning and budgeting
  • Ports and airports
  • cities
  • Indian people

The body was already made up of:

  • Mines and Energy (chairs the board)
  • Civil House
  • farm (former economy)
  • Transportation (former infrastructure)
  • agriculture and livestock;
  • Integration and Regional Development (formerly Regional Development);
  • Science, technology and innovation
  • environment and climate change;
  • Corporate Security Office.

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