Resolution No. 8, of August 18, 2020, of the National Energy Policy Council (CNPE), defined the goals of the National Biofuel Policy (RenovaBio), established by Law No. 13,576 / 2017, for the period from 2021 to 2030, and revised the targets set for 2020.

RenovaBio is a long-term structuring public policy that came into full operation in December 2019, with the objective of promoting the expansion of the production and use of biofuels in the national energy matrix and contributing to the reduction of emissions of gases that cause gases greenhouse effect (GHG). The Decarbonisation Credit (CBIO), one of its instruments, is issued by voluntarily certified biofuel producers, based on the energy-environmental efficiency rating obtained from this certification and the volume of biofuels sold in the national market. Each CBIO is equivalent to one ton of emissions avoided. Distributors are the obligated part of the policy to acquire CBIOs.

Annually, as part of the Policy, the CNPE establishes mandatory targets for reducing GHG emissions for the sale of fuels. In this cycle, the National Energy Policy Council reduced the 2020 targets, materialized in its Resolution No. 8/2020. The Council recognized the negative impacts of the COVID-19 pandemic on the sector and, consequently, the need to adapt the targets to the reduction of fuel demand and, therefore, to the lower emissions of CBIOs in the first years of operation of RenovaBio in relation to the targets established in the previous cycle by CNPE Resolution No. 15, of June 24, 2019.

The proposal to reduce RenovaBio's goals was previously discussed and analyzed by the RenovaBio Committee before being submitted to CNPE. The Committee, coordinated by the Ministry of Mines and Energy, is formed by members representing the Civil House of the Presidency of the Republic, the Ministry of Economy, the Ministry of Agriculture, Livestock and Supply, the Ministry of the Environment, the Ministry of Science, Technology and Innovations and the Ministry of Infrastructure. The Ministry of Foreign Affairs, the National Agency for Petroleum, Natural Gas and Biofuels (ANP) and the Energy Research Company (EPE) also participate as permanent guests.

In addition, as in previous years, the construction of the proposal sent to CNPE was supported by objective technical studies, which were the subject of Public Consultation No. 94/2020. This participatory process was carried out with total transparency and a broad debate with society throughout the thirty days of its duration.

These technical studies included the performance of robust statistical treatment, whose premises were evaluated in ten thousand different scenarios. The reliability of the work can be attested in the comparison of the CBIOS supply forecast by the studies for the year 2020 with the actual verified CBIO supply. According to the study, the total supply of CBIOs at the end of September, is estimated at 9,830,043 CBIOs. In turn, at the close of September 24, official data from the ANP accounted for the total offer of 9,611,226 CBIOs, with four business days remaining for the end of the month.

As a result, it is necessary to reposition the carbon intensity reduction curve (emissions per unit of energy) of the national transport fuel matrix and, consequently, the curve for RenovaBio's emission reduction targets, as well as the reduction of the goals defined for the year 2020, it is perfectly aligned with the market reality, considering the effects of the COVID-19 pandemic.

Finally, it should be noted that the targets for the 2021-2030 cycle maintained the reduction in the carbon intensity of the matrix established in the previous cycle, which was one of the main indicators of the new RenovaBio targets. Regarding the tolerance intervals, these have been extended, exactly to incorporate the market uncertainties regarding the speed of the resumption of economic activity to pre-pandemic levels.

The Ministry of Mines and Energy remains active, together with other agencies, monitoring the fuel market and adopting measures and actions necessary for the implementation of its policies. The proposal to reduce RenovaBio's goals approved by CNPE provides regulatory security and predictability to the sector and confirms the recognition of the strategic role of biofuels in the Brazilian energy matrix and their importance in enabling an increasingly sustainable, competitive and secure energy supply.