The path to the free market for Biofuels was the theme of the session "Biofuels: the path to the free market", which brought together representatives from IBP, Raízen, EPE, Ipiranga and Petrobras. Among the main strategies pointed to the continuity of success in the sector, are the evolution of public energy security policies, the revision of the tax system, the reduction of excessive regulatory restrictions and the guarantee of competitive equality through legal security.

Valeria Amoroso Lima (photo), executive director of Downstream at IBP, said that the energy transition to a low carbon economy has been challenging in several sectors, and that biofuels are one of the main alternatives for the decarbonization of the sector. "Today, Brazil is the second largest producer of ethanol and the second largest producer of biodiesel - mature and robust industries. This success story, which started in 1975 with pro-alcohol and, today, is supported by the Mandatory Blending Mandate and by Renovabio, it does not guarantee the success of the future, we have to move forward in the adoption of public policies that allow an ever greater synergy between biofuels and other markets. "

From the perspective of strategic planning, Heloisa Borges Esteves, Director of Petroleum, Natural Gas and Biofuels at EPE, believes in the strength of biofuels as the energy solution for Brazil. "When we talk about the path to the biome market, we are clear that the process will have to adapt to the characteristics of each country, and the climate agenda will increasingly influence trade and international relations. The policies adopted for biofuels must be constantly evolving , in order to maintain energy security and promote social and economic development, meeting sustainability requirements. "

Irregular Market 

The Covid-19 pandemic made it difficult to inspect the fuel market in Brazil - which formally handles a volume of 125 billion liters, invoices R $ 450 billion and collects R $ 150 billion in taxes, of which R $ 92 billion refer only to ICMS.

In the session "The escalation of the irregular market", Fernanda Delgado, a researcher at FGV Energia, stated that high taxation, low gross margins of distribution, logistics and resale make the practice of evasion, persistent default, sales without a tax document attractive, simulation of fictitious operations and adulteration. Carlo Rodrigo Faccio, director of the Instituto Combustível Legal (ICL), indicated some paths, such as "a rapid tax reform that reduces the complexity of the model and the loopholes for tax evasion". He also cited the need for banks to share information with ANP, MP, PRF, PF, IRS, Procon, Treasury departments to identify irregularities, as well as increased punishment for criminals. Another alternative, he says, is the use of "technological vaccines, such as intelligence of things, encrypted bombs and monitoring of cargo in transit".