**2. Early stages of biodiesel in Brazil and first public policies**

The first time Brazil began to flirt with biodiesel was during the 1920s, when the *Instituto Nacional de Tecnologia*, a government technological institution, began to undertake studies on that biofuel [9].

Although the first real tests with biodiesel in Brazil began to appear 20 years later, in the early 1940s, during World War II [10], it was only during the 1970s, after continued increases in oil prices, that conventional biodiesel technology, using a catalyst and an alcohol, became well known in Brazil [11].

With the oil shock of 1973, the world awakened to the importance of finding different sources of energy that were not dirty like those produced by the fossil fuels. That year became a landmark in our planet's energy history, whose focus would be on overcoming the energy crisis via two main groups of action: conservation of energy—or energy saving—and the use of alternative sources of energy [12].

Following that type of awareness, Expedito Parente, the leading Brazilian biodiesel scientist at that time, created the first patents of that biofuel in the country, which would represent the outcome of his studies in the late 1970s and early 1980s. As a result, he became the mainstay and principal proponent of the early developments of biodiesel in Brazil.

The first policies created to promote the production and consumption of biodiesel in Brazil (**Table 1**) are discussed ahead.

#### **2.1. Social Fuel Stamp (SCS)**

three main heat-trapping gases (methane, nitrous oxide, and CFCs—except for CFC-13 and CFC-115), it is seen as the chief culprit of global warming, which has worried the scientific

and hundreds of scientists from all over the globe gathered at the end of 2015, in Paris, for the 21st Conference of Parts—also known as COP21 or Paris Agreement—with the main goal of engaging nations in an international agreement on climate change in which everyone pledged to collaborate so that the increase in the average temperature of our planet should not exceed

At the COP21, Brazil voluntarily committed to: (1) cut down on GHG emission up to 37% by 2025 and 43% by 2030—considering 2005 as the base year for both scenarios [2]—which

year 2020 [3]; (2) increase the use of biofuels from sustainable bioenergy up to 18% of the total domestic energy mix by the year 2030 [4]; and (3) increase the share of renewables to an

sake of our own planet, it is reasonable for biofuels to present themselves as clean and renewable alternatives [6] for the gradual replacement of fossil fuels such as gasoline and mineral diesel, for example. Therefore, because biodiesel is biodegradable, less toxic, and almost 100%

After 2005, some public policies were created in Brazil as an attempt to definitely establish biodiesel as replacement for fossil diesel, mainly in the transport sector. Although successful to some extent, none of them compare in scope and reach to the recently created National Biofuels Policy (RenovaBio), whereto there is a hope it will make the production and use of

Therefore, this work is primarily aimed at informing the reader about the past biodiesel policies that were implemented to boost its production and use, providing special emphasis to the

The first time Brazil began to flirt with biodiesel was during the 1920s, when the *Instituto Nacional de Tecnologia*, a government technological institution, began to undertake studies on

Although the first real tests with biodiesel in Brazil began to appear 20 years later, in the early 1940s, during World War II [10], it was only during the 1970s, after continued increases in oil prices, that conventional biodiesel technology, using a catalyst and an alcohol, became well

With the oil shock of 1973, the world awakened to the importance of finding different sources of energy that were not dirty like those produced by the fossil fuels. That year became a

**2. Early stages of biodiesel in Brazil and first public policies**

would represent approximately 1.2 million tons of carbon dioxide equivalent (CO2

emissions in the air, dozens of heads of state

needs to be banned from our environment for the

eq) by the

community around the world in recent years.

162 Biofuels - Challenges and opportunities

Bearing in mind that it is essential to limit CO2

the limit of 2°C by the end of this century.

estimated 45% by the same year [5].

So, considering the scenario wherein CO2

renewable [7, 8], it stands as an option.

biodiesel increase at a much faster rate.

most recent one: RenovaBio.

that biofuel [9].

known in Brazil [11].

The Brazilian government launched the Social Fuel Stamp program—or *Selo Combustível Social (SCS)*, in Portuguese—in December 2004, through Decree No. 5297 [13], to promote social inclusion of family farmers from the two poorest regions of Brazil: North and Northeast [14]. The intention was also to regionalize the production—highly dependent on soybean and beef tallow—of other abundant raw materials, such as palm, cotton seed, and maybe jatropha [15].

Plentiful in both regions, castor would be a nice contender if it were not for the fact that this oilseed presents a very high viscosity content of 14.1 mm2 /s, which is way above the maximum determined by the Brazilian Petroleum Agency (ANP) of 6.0 mm2 /s [16]. That technical constraint alone deems castor an unsuitable alternative feedstock for the production of biodiesel [10, 17–20].

The SCS is also a mechanism that serves to reduce government taxes and allow the Brazilian Development Bank (BNDES) to grant lower funding fees for biodiesel producers who acquire raw materials from—and provide technical assistance to—family farmers [15].

Through ANP, the Federal government promotes auctions for the purchase of biodiesel. During the first stage of the auction, 80% of the total volume is offered to biodiesel producers who already have the SCS. This phase, restricted to holders of the stamp, grants them the purchase and delivery of the product for specified periods. The remaining 20% of biodiesel is offered to any producer, with or without the stamp [21, 22].


**Table 1.** Policies that helped biodiesel in Brazil.

Although the SCS program was conceived to bring about major social and economic changes in the North and Northeast regions, as initially intended by the government, except for some modest progress, many authors see it as a failure. The reasons vary from high logistic and harvesting costs to low economies of scale, low utilization of agricultural machinery, artificial irrigation and fertilizer, and lack of access to financing due to red tape [18]. Therefore, this program is currently under revision in order to correct the aforesaid problems, already realized by the government.

#### **2.2. National Program of Production and Use of Biodiesel (PNPB)**

On January 13, 2005, the Brazilian government formally introduced The National Program of Production and Use of Biodiesel (PNPB, Brazilian acronym for *Programa Nacional de Produção e Uso de Biodiesel*) into the energy matrix through the implementation of Federal Law No. 11097 [23].

One of the main objectives of PNPB, besides the promotion of social inclusion of family farmers, primarily from the North and Northeast regions of Brazil, was also to reduce the import of mineral diesel [9, 24], thus positively affecting the Brazilian trade balance.

In addition, the program also meant to establish a minimum blending percentage of biodiesel into petroleum diesel. At first, the suggested blending percentage (2%) was optional to run from 2005 to 2007, then mandatory from January 2008 onward (**Table 2**).

**Table 2** shows that the production percentage rates from 2005 to 2010 were (on average) very high when compared to the ones from 2011 to 2017. Although 2014 was a year in which the blend changed twice, the percentage increase was relatively low: only 17%. And since then, the percentage has declined, even negative in 2016—a year in which there was a decrease in the biodiesel production for the first time since the establishment of the PNPB program, in 2005.

Furthermore, both policies also shed light on how to diminish natural and anthropogenic impacts, and how to promote the understanding about the consequences of existing and

**) % Blend**

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165

2005 736 — B2 69,002 9275 B2 404,329 486 B2 1,167,128 189 B2/B3 1,608,448 38 B3/B4 2,386,399 48 B5 2,672,760 12 B5 2,717,483 2 B5 2,917,488 7 B5 3,422,210 17 B5/B6/B7 3,937,269 15 B7 3,801,339 −3 B7 4,291,294 13 B8 5,590,000\* 30 B10

**Table 2.** Annual biodiesel production and respective rounded percentages [25].

One of PNMC's guidelines is Brazil's Nationally Determined Contributions (NDC) commit-

On September 24, 2014, the Federal government enacted Law No. 13033 [28], turning mandatory the blending of biodiesel into petroleum diesel in the following percentages: 6% (B6)

This policy also allows the voluntary addition of biodiesel to diesel in amounts greater than the mandatory percentage in public transport, rail, inland navigation, equipment, or vehicles for mineral extraction and electric power generation, tractors, and other automotive vehicles

Law No. 13263, implemented on March 23, 2016, alters Law No. 13033 to establish new mandatory blending percentages of biodiesel into mineral diesel, as follows: 8, 9, and 10 (B8, B9, B10) to commence on March 1 of 2017, 2018, and 2019, respectively [29]. But the latter policy

beginning on July 1, 2014, and 7% (B7) starting on November 1 of the same year.

intended to pull or tow agricultural machinery or to carry out agricultural work [28].

forthcoming climate change events [27].

**2.4. Blending mandates on diesel: 6 and 7%**

**2.5. Blending mandates on diesel: 8 and 10%**

upholds the prerogative of voluntary addition of the former.

ted at the Paris Agreement.

\*

Expected demand [21].

**Year B100 (m<sup>3</sup>**

Right from the beginning of the PNPB program, soybean has become the main and overwhelmingly dominant raw material for biodiesel production, accounting for an average of 75% and beef tallow, in second, with an average of 15%. Other raw materials, such as cotton seed, used cooking oil, and other fats would represent, altogether, the remaining 10% [25]. This high dominance of both feedstocks has driven the Brazilian government to create mechanisms to incentivize the use of alternative raw materials [15, 26].

#### **2.3. National Policy on Climate Change (PNMC)**

Law No. 12187 was sanctioned on December 29, 2009, and amended by the Presidential Decree No. 7390 on December 9, 2010 [27]. Together, they establish principles, goals, instruments, and guidelines of the National Policy on Climate Change (PNMC) and elucidate terms such as adaptation, mitigation, emissions and sources of emissions, greenhouse gases, and their eminent impacts [27].

Both law and decree also provide that any measures taken to reduce any type of emissions must have a national range, besides being focused on the prevention or minimization of damages caused directly by anthropogenic activities. On the other hand, these measures should also consider the different socioeconomic contexts of their application, as well as allocate to the population and economic sectors the burdens and charges resulting from such impacts.

Biodiesel in Brazil Should Take Off with the Newly Introduced Domestic Biofuels Policy: RenovaBio http://dx.doi.org/10.5772/intechopen.79670 165


**Table 2.** Annual biodiesel production and respective rounded percentages [25].

Furthermore, both policies also shed light on how to diminish natural and anthropogenic impacts, and how to promote the understanding about the consequences of existing and forthcoming climate change events [27].

One of PNMC's guidelines is Brazil's Nationally Determined Contributions (NDC) committed at the Paris Agreement.

#### **2.4. Blending mandates on diesel: 6 and 7%**

Although the SCS program was conceived to bring about major social and economic changes in the North and Northeast regions, as initially intended by the government, except for some modest progress, many authors see it as a failure. The reasons vary from high logistic and harvesting costs to low economies of scale, low utilization of agricultural machinery, artificial irrigation and fertilizer, and lack of access to financing due to red tape [18]. Therefore, this program is currently under revision in order to correct the aforesaid problems, already real-

On January 13, 2005, the Brazilian government formally introduced The National Program of Production and Use of Biodiesel (PNPB, Brazilian acronym for *Programa Nacional de Produção e Uso de Biodiesel*) into the energy matrix through the implementation of Federal Law No.

One of the main objectives of PNPB, besides the promotion of social inclusion of family farmers, primarily from the North and Northeast regions of Brazil, was also to reduce the import

In addition, the program also meant to establish a minimum blending percentage of biodiesel into petroleum diesel. At first, the suggested blending percentage (2%) was optional to run

**Table 2** shows that the production percentage rates from 2005 to 2010 were (on average) very high when compared to the ones from 2011 to 2017. Although 2014 was a year in which the blend changed twice, the percentage increase was relatively low: only 17%. And since then, the percentage has declined, even negative in 2016—a year in which there was a decrease in the biodiesel

Right from the beginning of the PNPB program, soybean has become the main and overwhelmingly dominant raw material for biodiesel production, accounting for an average of 75% and beef tallow, in second, with an average of 15%. Other raw materials, such as cotton seed, used cooking oil, and other fats would represent, altogether, the remaining 10% [25]. This high dominance of both feedstocks has driven the Brazilian government to create mecha-

Law No. 12187 was sanctioned on December 29, 2009, and amended by the Presidential Decree No. 7390 on December 9, 2010 [27]. Together, they establish principles, goals, instruments, and guidelines of the National Policy on Climate Change (PNMC) and elucidate terms such as adaptation, mitigation, emissions and sources of emissions, greenhouse gases, and

Both law and decree also provide that any measures taken to reduce any type of emissions must have a national range, besides being focused on the prevention or minimization of damages caused directly by anthropogenic activities. On the other hand, these measures should also consider the different socioeconomic contexts of their application, as well as allocate to the population and economic sectors the burdens and charges resulting from such impacts.

of mineral diesel [9, 24], thus positively affecting the Brazilian trade balance.

from 2005 to 2007, then mandatory from January 2008 onward (**Table 2**).

nisms to incentivize the use of alternative raw materials [15, 26].

**2.3. National Policy on Climate Change (PNMC)**

their eminent impacts [27].

production for the first time since the establishment of the PNPB program, in 2005.

**2.2. National Program of Production and Use of Biodiesel (PNPB)**

ized by the government.

164 Biofuels - Challenges and opportunities

11097 [23].

On September 24, 2014, the Federal government enacted Law No. 13033 [28], turning mandatory the blending of biodiesel into petroleum diesel in the following percentages: 6% (B6) beginning on July 1, 2014, and 7% (B7) starting on November 1 of the same year.

This policy also allows the voluntary addition of biodiesel to diesel in amounts greater than the mandatory percentage in public transport, rail, inland navigation, equipment, or vehicles for mineral extraction and electric power generation, tractors, and other automotive vehicles intended to pull or tow agricultural machinery or to carry out agricultural work [28].

#### **2.5. Blending mandates on diesel: 8 and 10%**

Law No. 13263, implemented on March 23, 2016, alters Law No. 13033 to establish new mandatory blending percentages of biodiesel into mineral diesel, as follows: 8, 9, and 10 (B8, B9, B10) to commence on March 1 of 2017, 2018, and 2019, respectively [29]. But the latter policy upholds the prerogative of voluntary addition of the former.

This law also authorizes the increment of up to 15% (B15) of biodiesel to fossil diesel sold to end users, in any part of the country, after completion (up to 36 months of its enactment) of specific tests and experiments on engines that validate the use of the mixture [29]. The specific tests (50 or so) shall be conducted by more than 20 different companies, spread out through more than 15 locations nationwide [21].

**3.2. RenovaBio and Brazil's commitments to mitigate carbon dioxide emissions**

the country presented its voluntary goals for 2030 under the NDC.

experimental use, specific or in other applications [21].

services, may also be part of this committee as guests [40].

*3.2.1. Certificate of Efficient Production of Biofuels (CPEB)*

inspect the biofuel companies—either producers or importers [30].

Committee on Climate Change (CIM) [40].

the previous two years [40].

Decarbonization Credits.

aforementioned.

Biofuels have aroused the interest of the Brazilian government in the light of its mitigating potential against the harm caused by petroleum-derived fuels, mainly in the transport sector [22]. Therefore, by enacting RenovaBio, the Brazilian government has overtly shown to the international scientific community its desire to comply with the Paris Agreement, in which

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To achieve these goals, Brazil will adopt actions to reduce GHG projected emissions and increase the share of renewable energy and biofuels into the country's energy matrix [39], as

Furthermore, there is a possibility of voluntary use of biodiesel in mineral diesel to be greater than the mandatory blend in specific cases, such as: 20% in captive fleets or road users serviced by supply point; 30% in rail transport; 30% in agricultural and industrial use; 100% in

Decree No. 9308, sanctioned on March 15, 2018, addresses the annual compulsory targets to reduce domestic emissions of GHGs and assigns to the National Energy Policy Council (CNPE) the definition of these goals, which are based on recommendations of the Interministerial

The breaking down of the national mandatory targets—provided by CNPE—into an individual goal that must be assigned to each biofuel distributor is responsibility of ANP. The distributors that do not comply with their individual goals will be subject to a fine proportional to the noncompliance goal, which may not exceed 5% of their annual revenue, registered in

This decree has also established a RenovaBio Committee to provide technical support to CNPE in the process of defining—until June 2018—the annual national reduction targets and it is consisted of agents from seven Ministries, among them Mines and Energy, Environment, and Agriculture. Representatives of other federal, state, and municipal agencies, as well as public and private sector entities from the biofuels market, in addition to technicians and specialists from the sector, whose assistance will be considered provision of unpaid public

One of the new facets of RenovaBio, missing in previous biofuels policies, is the creation of two important market mechanisms: *Certificado de Produção Eficiente de Biocombustíveis* (CPEB), or Certificate of Efficient Production of Biofuels, and *Créditos de Descarbonização* (CBios), or

Chapter 2 of the RenovaBio policy defines the CPEB as a document issued exclusively by inspection companies as a result of the biofuel certification process. These companies must be highly qualified as such (ISO-standard) and be approved by the government in order to

With the anticipation of the B10 blend to March 2018, there should be a progressive increase in the biodiesel-to-diesel mix aiming to achieve the B15 in 2025 in order to meet the country's NDC, committed at the Paris Agreement [21].
