Page 21 - Respond 2019 Magazine

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such a way that the producer who
produces the largest amount of net
energy with lower CO2 emissions in the
life cycle shall receive a higher grade.
For instance, a plant that produces only
1st generation ethanol will receive a
lower grade than a plant that produces
1st generation ethanol, 2nd generation
ethanol and bioenergy.
As a result, the grade will accurately
reflect the individual contribution of each
producer agent to the mitigation of a
specific amount of greenhouse gases in
relation to their fossil substitute (in terms
of tons of CO2). The process of certification
regarding the production of biofuels under
the RenovaBio will be the responsibility of Dr. Maria João, Rolim, Viotti & Leite Campos
the National Petroleum Agency (“Agência
Nacional do Petróleo – ANP”).
The methodology adopted for the HOW DOES IT WORK
calculation of the carbon intensity of
each certified biofuel is based on the Physical
Market
assessment of its life cycle, which considers
the environmental impacts of that Producer and $$ Distributor
product during its entire life cycle, through Importer of of fuels
consecutive stages, beginning from raw biofuels
material, or since its generation from Emission of
natural resources until its final destination. Carbon Credits Carbon Credits
$$ $$ Individual Target
The Federal Decree nº 9.308/2018 was the
first step in the national policy regulation,
with the establishment of the policy’s
governance, the accreditation process and Stock Exchange
target definitions for the fuels distributors.
Target in Brazil
Despite the broad and innovative view
adopted, the effectiveness of the policy
still needs to be tested. There are still
uncertainties about how the provisions OPERATIONAL DIAGRAM OF RENOVABIO
will be regulated, in particular in relation
to the marketing conditions of the CBIOs.
Nonetheless, this policy represents a and Ministry of Mines and CMBC → CNPE
major step towards the increase of the Energy (Ministério de
participation of the bioenergy in the Minas e Energia - MME)
Brazilian energy mix, contributing to ANP
meeting Brazilian reduction emission
targets agreed on in the Paris Agreement. Individual Targets
CBIO (Fossil %)
Biofuel Producer CBIO in the Stock CBIO Distributor of fuels
1 Renewables account for around Exchange
85% of the electricity mix including
hydroelectricity. Source: International Fossil Fuels
CBIO
Energy Agency - IEA (Country Outlook -
Brazil) Other players in
2 Source: Energy Research Company (EPE - CBIO Emission Allowance the Stock Exchange
Empresa de Pesquisa Energética)
3 Source: Ministério das Minas e Energia Physical Sale of the Biofuel
(Issuance of Invoice)
Source: MME

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