Factsheet: Proalcool

Proalcool

Key Information
Full name of Instrument & Measure (English): 
National Fuel Alcohol Program (Proalcool)
Description: 
The use of biofuel (ethanol) is promoted through the Brazilian Alcohol Program (PROALCOOL), which encourages the production of renewable biomass fuel as an oil substitute. Driven by blending mandates and strong competition between ethanol and gasoline, Brazil remains the second-largest market and continues to have a larger share of biofuels in its transport fuel consumption than any other country. In 2035, biofuels will meet 30% of Brazilian road-transport fuel demand up from 19% today.The Brazilian national alcohol program does not constitute a single entity, but the country of Brazil can itself be thought of as the world's largest single producer of first generation biofuels, namely ethanol. The Brazilian government supports private industry in the development of alcohol-based fuels by subsidizing research and development.
Goal/Aim: 
Support development of alcohol-based fuels
Responsible Authority: 
The policy requires close coordination among all sectors involved: the Ministry of Agriculture and sugarcane planters, the Ministry of Science and Technology and research centres, the Ministry of Industry and Commerce, the automobile industry, Ministry of Mines and Energy, PETROBRÁS, the fuel distributors, and the gas stations, the Ministries of Finance and Planning, the Ministry of Environment and automobile owners.

Status:

Trade Relevance: 
Policies stimulating domestic use of biomass => availability for export
Year Instrument & Measure Started: 
1974