December 28 (Renewables Now) - Brazil's Ministry of Mines and Energy announced on Wednesday that President Michel Temer has signed into law the bill creating a national programme to increase the use of biofuels in the country.
The National Biofuel Policy -- RenovaBio -- will establish emissions reduction targets for the fuel sector, with a 10-year minimum period. These targets will be individually made for fuel distributors, taking into account their participation in the fossil fuel market. The mandatory targets for the 10-year period have to be defined within 180 days from the enactment of the law, the ministry said.
In addition, the law establishes the decarbonisation credit (CBIO), which combines the emissions reduction targets and the life cycle assessment of each biofuel producer. CBIO will be a financial asset that is issued by the biofuel producer and traded on a stock exchange. It will serve as a way for distributers to show that they are meeting their target.