Last Tuesday (8), President Luiz Inácio Lula da Silva sanctioned the Fuel of the Future Law , an initiative that promises to transform the Brazilian energy scenario and consolidate the country as a global player in the transition to clean energy. Under the rain at the Brasília Air Base, Lula highlighted the importance of this new legislation, which originated in bill 528/2020 and was unanimously approved in Congress after intense negotiations over four months.
The new law establishes national programs for green diesel, sustainable aviation fuel and biomethane, among other initiatives. With a focus on promoting sustainable low-carbon mobility, the law aims to create a favorable environment for attracting private investment and creating jobs, stimulating economic development with respect for the environment.
During the sanctioning ceremony, businesspeople committed to initial investments of R$21 billion in new biofuel projects , and the Ministry of Mines and Energy estimates that total investments could reach R$260 billion in the coming years.
What does the Future Fuel Law provide for?
The Fuel of the Future Law creates specific programs to encourage the production and use of biofuels in Brazil . Among the main initiatives is the National Sustainable Aviation Fuel Program (ProBioQAV), which will require airline operators to reduce greenhouse gas emissions on domestic flights, starting in 2027, with gradual targets of up to 10% by 2037. The National Green Diesel Program (PNDV) will stipulate the minimum amount of green diesel that must be mixed with fossil diesel, ensuring greater incorporation of renewable fuels into the national matrix.
Another highlight is the National Program for Decarbonization of Natural Gas Producers and Importers and Incentive to Biomethane , which aims to promote biomethane as a sustainable alternative in the natural gas sector. The goal is to start with a 1% reduction in emissions in 2026, reaching a maximum of 10%. These programs aim to reduce the carbon footprint of the transportation and mobility sector, contributing to the decarbonization of the Brazilian economy.
Carbon capture and environmental impact
The law also establishes a regulatory framework for carbon capture and storage , an essential step for Brazil to become a global leader in reducing greenhouse gas emissions. It is estimated that the planned initiatives will prevent the emission of 705 million tons of CO2 by 2037, reinforcing the country's commitment to the fight against climate change.
With measures such as increasing the blending margins for ethanol in gasoline and biodiesel in diesel, in addition to encouraging research and development of clean technologies, the Fuel of the Future Law promises to revolutionize the energy sector and consolidate Brazil's position as a leader in the transition to a low-carbon economy . The successful implementation of this law will depend, however, on coordination between the government, the private sector and society to ensure that investments translate into concrete environmental and economic benefits for the country.
RADARH2 WRITING
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