On Wednesday (12), the National Congress overthrew the presidential veto that kept the taxation of Brazil's first environmental asset at 40.1%, the Decarbonization Credit, also known as CBIO. Almost unanimously, the two Houses voted to overturn the veto and, with that, to maintain the CBIO tax rate at 15%.

At the end of last year, Congress had redefined the rate by 15% with the approval of MP 897/19, the so-called Agro Law. The Executive, however, vetoed articles dealing with CBIO taxation.

The president of the Sugarcane Industry Union, Evandro Gussi (photo), pointed out that the overturning of the veto keeps the country on the path of voluntary and effective actions on the environmental agenda. “We have the cleanest matrix on the planet and we are going to move forward. CBIO is a heritage of Brazil for the world, as it will help to reduce CO2 emissions in this challenging moment for humanity. With fair taxation, we will position the country as a highly qualified player in attracting investments in a low-carbon economy, ”said Gussi.

For the president of the Parliamentary Sucroenergetic Front, deputy Arnaldo Jardim, the decision consolidates CBIO, RenovaBio's instrument. “A victory that means going ahead, consolidating biofuels in our country, in our energy matrix. A commitment to Brazil, to the environmental issue, to the future and to job creation ”, he celebrated.

RenovaBio

The National Biofuels Policy (RenovaBio) was designed to achieve part of the GHG emission reduction targets set by Brazil under the Paris Agreement. The program compares the carbon footprint of different biofuels across the entire life cycle (from production to burning) to measure the emission reduction provided compared to the fossil alternative.

In addition, the policy establishes ten-year decarbonisation targets, which are met with increased use of renewable fuels and the sale of carbon credits.