On March 28, 2024, Brazil's National Petroleum Agency (ANP) published the mandatory individual targets for reducing greenhouse gas emissions for 2024. These targets consider the global target of 38.78 million Decarbonization Credits (CBIOs) that must be acquired by fuel distributors throughout the year, as established by the National Energy Policy Council (CNPE) in Resolution No. 6/2023.
The National Biofuels Policy—RenovaBio, which was established by Federal Law No. 13,576/2017—aims to reduce the presence of carbon in the transport energy matrix by promoting the production and commercialization of biofuels, requiring that fuel distributors must acquire CBIOs from certified biofuel production plants.
Furthermore, the ANP released the compliance results of individual targets for 2023, during which 33.1 million CBIOS were retired, representing 81% of the individual targets assigned to distributors by the ANP, and 88% of the global target set by the CNPE for 2023. These results indicate a significant drop in compliance compared to previous years:
|
Years |
Compliance with Individual Targets |
Compliance with Global Target |
|
2023 |
81% |
88% |
|
2022 |
90.4% |
92.3% |
|
2021 |
96.8% |
98.2% |
The reduction in compliance levels can be attributed to, among other factors, the increase in CBIO prices, uncertainties arising from litigation of the matter, and the expected possibility of compliance deadline extension, similar to what happened in 2022.
Partial or total non-compliance with individual targets can result in a fine, proportional to the volume of CBIOs that have not been achieved, up to BRL 50 million.
The Environmental, Climate Change and ESG practice of Tauil & Chequer Advogados, in association with Mayer Brown, is available for additional information.
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