Cop: Brazil to invest $40bn in biofuels by 2037

Market: Biofuels, E-fuels, Emissions, Natural gas
05/12/23

Brazil's range of clean energy initiatives under the Fuel of the Future program's umbrella should unlock R200bn ($40bn) in financing by 2037, mines and energy minister Alexandre Silveira said at the UN Cop 28 climate summit in Dubai.

Silveira told a panel on Monday that over R105bn will go towards state-level biofuels policy Renovabio, which establishes annual decarbonization goals for the fuel sector, and Rota 2030, a development program for the automotive industry.

According to him, R65bn are expected to be diverted to a mix of biofuel products — ethanol, biodiesel, e-fuels and biomethane — while developing hydrotreated vegetable oil (HVO) refineries should take up R8bn.

A R3bn share will be allocated towards emerging carbon capture and storage projects.

"Our country contributes and will continue to contribute vigorously to solving the complex challenges the world is experiencing, especially tackling climate causes and problems that are no longer debatable," the minister said.

He added that Inter-American Development Bank president Ilan Goldfajn and International Energy Agency (IEA) executive director Fatih Birol praised the country's Fuel of the Future program.

The green package, officially launched in September, aims to reduce emissions and boost the use of various biofuels in the country, including sustainable aviation fuel, HVO and ethanol.

It still requires congress' approval to become law.

By Vinicius Damazio

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

15/01/25

Inpex wins Norwegian offshore exploration licences

Tokyo, 15 January (Argus) — Japanese upstream firm Inpex has won eight oil and gas exploration permits offshore Norway, expanding its operations in the country, Inpex said today. Inpex was awarded exploration licences PL1263, PL318D, PL1264, PL1257, and PL636D located between the northern North Sea and the southern Norwegian Sea, along with PL 1276, PL1274 and PL1194C in the northern Norwegian Sea through its local subsidiary Inpex Idemitsu Norge (IIN). The successful bid was part of the awards in the pre-defined areas (APA) 2024 licensing round . IIN secured five licenses in the 2023 APA round . The APA rounds are held every year and focus on mature areas of the Norwegian continental shelf. The aim is to facilitate the discovery and production of remaining oil and gas resources in these areas before existing infrastructure is shut down. In the latest round, 33 of the licences are in the North Sea, 19 in the Norwegian Sea and one in the Barents Sea. The latest licences will contribute to expanding its Norwegian business portfolio, Inpex said, given the potential of jointly developing the new assets with existing assets in the surrounding area. The company has continued stable production at the Snorre and Fram oil fields in the northern North Sea. The Japanese firm aims to strengthen its upstream business as part of its long-term strategy, while it invests in renewable energy such as green ammonia. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

New York to propose GHG market rules in 'coming months’

14/01/25

News

14/01/25

New York to propose GHG market rules in 'coming months’

Houston, 14 January (Argus) — Draft rules for New York's carbon market will be ready in the "coming months," governor Kathy Hochul (D) said today. Regulators from the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) "will take steps forward on" establishing a cap-and-invest program and propose new emissions reporting requirements for sources while also creating "a robust investment planning process," Hochul said during her state of the state message. But the governor did not provide a timeline for the process beyond saying the agency's work do this work "over the coming months." Hochul's remarks come after regulators in September delayed plans to begin implementing New York's cap-and-invest program (NYCI) to 2026. At the time, DEC deputy commissioner Jon Binder said that draft regulations would be released "in the next few months." DEC, NYSERDA and Hochul's office each did not respond to requests for comment. Some environmental groups applauded Hochul's remarks, while also expressing concern about the state's next steps. Evergreen Action noted that the timeline for NYCI "appears uncertain" and called on lawmakers to "commit to this program in the 2025 budget." "For New York's economy, environment and legacy, we hope the governor commits to finalizing a cap-and-invest program this year," the group said. State law from 2019 requires New York to achieve a 40pc reduction in greenhouse gas (GHG) emissions from 1990 levels by 2030 and an 85pc reduction by 2050. A state advisory group in 2022 issued a scoping plan that recommended the creation of an economy-wide carbon market to help the state reach those goals. By Ida Balakrishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

California GHG rulemaking hits speedbump

14/01/25

News

14/01/25

California GHG rulemaking hits speedbump

Houston, 14 January (Argus) — The California Air Resources Board (CARB) cap-and-trade program rulemaking is likely to weather further delays, according to one of the agency's top officials. The agency's "immediate" responsibility is to work with covered entities impacted by the ongoing Los Angeles County wildfires across its programs, according to deputy executive officer Rajinder Sahota. This means that the rulemaking is not "imminent or in the next few weeks." In addition, the agency needs to move carefully given the federal administration change , along with the negative response to proposed updates to the state's Low Carbon Fuel Standard received last year. CARB continues to evaluate program changes, with a focus on affordability, ambition and compliance costs. "We want to take time to ensure we get out foundational facts about the program especially as the legislature takes up the post-2030 role of the program," Sahota said. The cap-and-trade rulemaking has been marked by a series of delays, as regulators initially in 2023 estimated it would finish last year. In December , CARB said it would delay the publication of draft amendments until early 2025. CARB began to prepare for the rulemaking nearly two years ago, floating the idea of moving the cap-and-trade program to a more-stringent 2030 greenhouse gas (GHG) reduction target of a 48pc, compared with 1990 levels, rather than the current 40pc mandate. The agency's 2022 Scoping Plan prompted the idea as it showed a need for increased program ambition for California to remain on track for its target of net-zero by 2045. In line with this increased ambition, CARB will need to remove at least 180mn metric tonnes (t) of allowances from the 2026-2030 auction and allocation annual budgets to start with, and up to 265mn t in total from the program budgets from 2026-2045, agency staff have said. Quebec, California's partner in the Western Climate Initiative (WCI) carbon market, previously delayed publishing its draft package from the originally planned September 2024 to the first quarter of this year, with implementation expected in the spring. While the regulation was nearly complete in late September, the Quebec Environmental Ministry decided to postpone, citing the need to wait for California. If California delays its work through the first quarter of the year, this will likely require Quebec to also push back its rulemaking. This will also shorten the runway for both market partners to formally implement changes by 2026. The news has punctured the bullish sentiment for market participants on a timely end to the rulemaking. California carbon allowances for December delivery initially traded as high as $35.25/t on the Intercontinental Exchange (ICE) ahead of the announcement. The contract traded as low as $33.01/t after midday on Nodal Exchange following the news, before sliding lower in later trade. Outside of the WCI, Washington is also likely to see a slowdown in its carbon market ambitions. The state Department of Ecology is conducting its own rulemaking to align Washington's "cap-and-invest" program to facilitate linkage with the larger WCI market. But it will require California and Quebec to finalize their expected changes. California has indicated over last year that it does not intend to focus fully on linkage until its current rulemaking is complete. California's and Quebec's cap-and-trade programs cover major sources of the state's GHG emissions, including power plants and transportation fuels. By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Brazil's Bndes grants R480mn to ethanol producer

14/01/25

News

14/01/25

Brazil's Bndes grants R480mn to ethanol producer

Sao Paulo, 14 January (Argus) — Brazil's Bndes development bank approved R480mn ($79mn) for sugar and ethanol producer CMAA to increase biofuel production in the state of Minas Gerais. The bank will grant R220mn from its Climate Fund to raise the private-sector company's anhydrous ethanol output in its Vale do Pontal sugar and ethanol unit, in Limeira do Oeste city, by around 1,470 b/d. The plant will be able to produce up to 3,650 b/d. With new investments, the Vale do Pontal plant will process 4mn metric tonnes (t) of sugarcane/crop, up from 2.7mn t/crop previously, producing hydrous ethanol, raw sugar and electric power for the Brazilian domestic market. The Climate Fund will be also used to double CMAA's power generation to 68MW. The remaining R260mn will be taken from Bndes' services and machinery program to modernize existing equipment and buy new agricultural machines. CMAA's Vale do Pontal, Vale do Tijuco and Canapolis units are expected to use R50mn, R160mn and R50mn, respectively. These resources can be allocated to buy, sell or produce machines, industrial systems or technological and automation goods, as well as hiring national services and machine imports, Bndes said. The company will also be able to increase issuance of Cbio carbon credits, following the rise in ethanol output. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

EU air traffic growth threatens carbon budget: Study

14/01/25

News

14/01/25

EU air traffic growth threatens carbon budget: Study

London, 14 January (Argus) — European aviation's Paris climate agreement-aligned carbon budget will be depleted by 2026 if air traffic grows as industry expects in the coming years, according to a study by Brussels-based non-governmental organisation Transport & Environment. While the EU has pledged to reach net zero greenhouse gas emissions by 2050, the aviation sector is still expected to emit 79mn t CO2 by this date, according to scenarios put forward by European aircraft manufacturer Airbus and US-based Boeing. Airbus sees air traffic growing at an average rate of 5.7pc/yr in 2024-27 and by 2.6pc/yr in 2024-43, while Boeing expects a 5.6pc/yr rise in 2024-33 and a 2.5pc/yr rise in 2024-43, Transport & Environment said. If these projections are accurate, the aviation sector carbon budget needed to remain in line with the Paris accord's goal of limiting global warming to 1.5°C above pre-industrial levels would be depleted by 2026, the study found. Aircraft will have to burn 59pc more fuel in 2050 than in 2019 to meet this increased demand, the study found, even after taking into consideration efficiency improvements. This growth in traffic would also cancel out the benefits of sustainable aviation fuels (SAFs). The expected growth also implies that the sector could be burning as much fossil kerosine in 2050 as it did in 2023 — some 21.1mn t — even with 42pc of fuel use covered by SAFs under EU mandates, Transport & Environment said. The EU expects air traffic growth to be 60pc lower than the Airbus and Boeing projections. But even this smaller increase would mean emissions rising by 46pc by 2040 against 1990 levels, the study found. Transport & Environment called for all flights departing the EU to be included in the bloc's emissions trading system (ETS) by 2027, as part of efforts to make air ticket prices reflect the sector's climate impact. The scheme currently applies only to journeys within the European Economic Area. Tax exemptions on jet fuel should also be removed and value added tax applied to air tickets, the NGO said. It also recommended halting the expansion of airport infrastructure and improving rail infrastructure so that the railways can compete with air travel. And it called for penalties for non-compliance with SAF mandates and financial support for SAF production through auctions and contracts for difference. The European Commission's proposed target to cut the EU's overall net emissions by 90pc by 2040 from 1990 levels "is completely meaningless without concrete policies to reduce emissions from aviation", the NGO's aviation director, Jo Dardenne, said. By Navneet Vyasan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more