Factsheet: Mandatory Biodiesel Requirement

Mandatory Biodiesel Requirement

Key Information
Full name of Instrument & Measure (English): 
Mandatory Biodiesel Requirement
Description: 
In 2005, the Mines and Energy Ministry of Brazil enacted a law establishing the requirement for B2 biodiesel - a mix of vegetable oil and sugar-cane ethanol with 98% standard diesel. The law was designed to stimulate the market for renewable, clean burning fuel. The B2 biodiesel requirement went into effect and became mandatory as of 1 January 2008. While in 2007 many gas stations began offering B2 biodiesel, all stations now offer only B2 biodiesel. The requirement was modified in March 2008, and as of 1 July 2008, the requirement is that all diesel contain 3% rather than 2% biofuel (B3 biodiesel). The mandatory biodiesel blending content was increased as of July 2009 to 4%, and further to 5% (B5 biodiesel) as of January 2010. The B5 biodiesel requirement is being implemented three years ahead of its scheduled implementation date of 2012 as per the 2005 law. In May 2014 the the mandatory biodiesel blending content was increased to 5% starting from 1st of Jul and 7% from 1st November 2014.
Goal/Aim: 
Stimulate advanced biofuels
Responsible Authority: 
National Petroleum Agency; Mines and Energy Ministry

Status:

Trade Relevance: 
Policies stimulating domestic use of biomass => availability for export
Year Instrument & Measure Started: 
2005
Year Last Instrument & Measure was last Amended: 
2014