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Biodiesel blend in Brazil in 2023 will be discussed with the transition team, says MME

The federal government will discuss a position on blending biodiesel into 2023 diesel with the transition team, the Ministry of Mines and Energy told Reuters, although the resolution falls within the competence of the current National Energy Policy Council (CNPE), of which future management is not yet a part.

Today, the mandatory proportion of biodiesel in diesel in Brazil is 10%. There is an expectation in the productive sector that a 2018 schedule will be resumed, which had been suspended by the government and which provides for an increase in the mixture to 14% from January and 15% from March.

According to the ministry, the topic is scheduled to be addressed at the ordinary meeting of the CNPE, scheduled for December 8.

Meanwhile, uncertainty persists among producers as to the volume of soybeans, the main raw material for Brazilian biodiesel, to be destined for oil production as of January, to supply distributors.

Representatives of the sector consulted by Reuters consider that, in case of omission by the CNPE, due to lack of consensus, the schedule approved in 2018, with a greater mix, would automatically return to effect.

If implemented, the resumption would have the potential to increase the demand for soybeans for biodiesel by 51% compared to this year, according to projections by the Association of Biofuel Producers of Brazil (Aprobio).

One of the actors leading the negotiations, federal deputy and president of the Biodiesel Joint Parliamentary Front (FPBio) Pedro Lupion (PP-PR) told Reuters that the conversation with the transition team, led by Vice President Geraldo Alckmin, “ is still very embryonic”.

Lupion believes, however, that the tendency is for an increase in the mixture in the government of Luiz Inácio Lula da Silva, due to PT’s own history of encouraging biofuels.

“I think it’s not so much just the issue of decarbonization. It’s more a question that, as the policy emerged back there, in the Lula government, with Rossetto, they tend to defend it,” said Lupion, referring to Miguel Rossetto, former minister of Agrarian Development in the first government of the PT.

Source: CNN Brasil

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