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Donizete Tokarski

Managing Director of Ubrabio - Brazilian Union of Biodiesel and Biokerosene

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The transformative effect of biodiesel

In recent months, the federal government has listed a series of actions to advance the decarbonization agenda in the biofuels sector. The sequence of positive announcements can effectively consolidate Brazil's role as a leader in the energy transition.

About to host an event of global proportions, COP 30, Brazil has all the conditions to enable an enviable portfolio in terms of efforts to further expand the participation of renewable energies in the energy matrix by next year.


The construction of this scenario is already a reality and was only possible thanks to the joint effort of the federal government, under the leadership of the Minister of Mines and Energy, Alexandre Silveira, the National Congress and entities in the productive sector, to put the necessary measures on paper to make this agenda viable, as well as, to approve a solid regulatory framework for biofuels, the Fuel of the Future bill.


As common speech in political circles, the use of the expression “perfect storm” for moments of great instability, it is possible to say that the country creates a virtuous storm for the energy transition, such will be the economic, social, environmental and public health gains for Brazil and for the world.


It may seem like an exaggerated appreciation of the country's potential, but it is a condition already attested, including by international organizations. In a meeting with Minister Silveira in January, the executive director of the International Energy Agency, Fatih Birol, reinforced the entity's assessment that Brazil will be a leader in this process, corresponding, among emerging countries, to 40% of the expected growth in global demand for biofuels. “The reason I am visiting Brasília is very simple: I believe that Brazil, in general, is entering an unprecedented period in economic and political history over the next two years,” said the executive.


Biodiesel, as has already been proven, will be a protagonist in this process as it is much more than a fuel, given its broad positive social and economic effects. The increase in the mixture of biodiesel in diesel, whose percentage rose to 14% in March, will be responsible not only for increasing our energy security, but also for increasing the quantity of soybean meal, adding value and competitiveness to the agroindustry.


Positive effects on health, with a reduction in hospitalizations due to a reduction in diseases associated with pollution, as well as a reduction in greenhouse gas emissions, also help to understand the motivation for this broad effort by the federal government, which captured the premise that biodiesel It is not just a fuel, but an inducer of social, economic and environmental transformations for the country.


Which brings us to one of the main transformations promoted by the biodiesel industry: the social one. Most Brazilian plants are far from large consumption centers, which greatly contributes to bringing economic and social development to small and medium-sized cities.


And it doesn't stop there. Biodiesel currently represents the largest income transfer program with private resources for family farming. To understand the scope of the National Biodiesel Production Program, in 2021, more than 70 thousand family farmers benefited, totaling 8.8 billion reais in transactions.


It is no coincidence that, at the end of last year, the Ministry of Mines and Energy, the Ministry of Agriculture and the Ministry of Agrarian Development and Family Agriculture announced changes to the Social Biofuel Seal, expanding its reach to farming families in the North regions, Northeast and Semi-arid. In other words, the Executive is nationalizing the program, which will certainly make a difference in the lives of thousands of small farmers. Therefore, the evolution of this agenda represents a window of opportunities for the country, not just for the sector. Biodiesel, therefore, stands as a powerful instrument for Brazil in terms of public policy.