As of this Monday (27), the system for registering and negotiating Decarbonization Credits (CBio) can already be accessed by market agents on the platform operated by B3. As a result, all the steps to start the National Biofuels Policy (RenovaBio), which came into force on December 24, 2019, will reduce the carbon intensity of the Brazilian transport matrix by increasing the share of renewable fuels and the offsetting of carbon dioxide (CO2) emissions generated by fossils with the commercialization of CBios (1 CBio is equivalent to a ton of CO2 that is no longer emitted into the atmosphere).

“This is the first green bond market, something new. The efforts of all agents who worked in an aligned manner for the whole process to be ready in time are evident ”, evaluates Evandro Gussi, president of the Union of Sugarcane Industries (UNICA).

To receive RenovaBio certification, biofuel producers need to survey how much CO2 they emit in the entire production process. That done, an inspecting firm accredited with the National Agency of Petroleum, Natural Gas and Biofuels (ANP) checks this survey. After the conclusion of the certification by the ANP, the producing company needs to sign a contract with the Federal Data Processing Service (SERPRO) to send its invoices for the sale of fuel ethanol and obtain the right to issue CBio for the volume sold.

CBios will have their business carried out in a counter environment, registered at B3 and will have their price defined by the free market according to supply and demand. B3 will also provide an electronic trading platform for CBio, Cetip | Trader. Individuals and corporations will be able to buy and sell these credits, but they should seek out financial institutions that will operate in this market to make their purchases.

Each decarbonization credit matures in the same cycle in which it was issued. To validate the purchase of CBios and materialize the decarbonization of the energy matrix, the buyer needs to write off, with the ANP, the credit acquired. According to B3, in June, the functionality of retirement, retirement consultation, sending files (issue, purchase and sale and retirement) and reconciliation files will be available on the platform.

To date, more than 1.3 billion CBios have been issued and there are about 240 companies in the process of certification. Of these, 130 have already been certified by the ANP.

RenovaBio 

RenovaBio is an action in response to the Paris Agreement and, thus, seeks to reduce CO2 emissions from Brazil by increasing the production capacity of biofuels (ethanol and biodiesel). In addition to contributing to human health, by reducing the release of polluting gases, the new policy also brings socioeconomic benefits with great potential for creating new jobs.