Government Reinforces Requirement for Domestic Origin of Biodiesel.

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April 07, 2026

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by Cristiane Noberto (CNN Brazil (Google Translation)) CNPE resolution maintains focus on domestic production and reduces the scope for foreign fuel. -- The government reinforced this Wednesday ( April 1st) the requirement for national origin of the biodiesel used in the mandatory mixture with diesel.

The decision was made by the CNPE (National Council for Energy Policy) and recognizes that it is in the interest of energy policy that all biodiesel used in B diesel be produced by units authorized by the ANP (National Agency of Petroleum, Natural Gas and Biofuels).

In practice, the measure consolidates the priority for domestic production within the mandatory blend and reduces the scope for imported biodiesel , an issue that had been advocated by some in the market.

The government's understanding is that the guideline reinforces energy security, regulatory predictability, and the enhancement of the national biofuel supply chain.

The decision also strengthens the PNPB (National Program for the Production and Use of Biodiesel), which links production to the use of raw materials from agriculture and the inclusion of family farmers.

Discussions about potentially opening up to imports have gained momentum in recent months, amid concerns about supply and prices due to the war in the Middle East, but the CNPE's signal was that the current model, centered on domestic production, would be maintained.

The sectors, especially agribusiness, have begun to advocate for increasing the blending of biofuels as a way to curb price increases. READ MORE

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Excerpt from CNN Brazil (Google Translation): The recent rise in diesel prices has reignited the debate in Brazil about increasing the blending of biodiesel with fossil fuels. The proposal advocated by entities in the agricultural sector, such as the Confederation of Agriculture and Livestock of Brazil (CNA), is to raise the current percentage to 17%, a measure that could reduce the country's external dependence and strengthen the soybean production chain.

According to Daniel Furlan Amaral , director of economics and regulatory affairs at the Brazilian Association of Vegetable Oil Industries (Abiove), the increase in diesel prices directly affects the agricultural sector in two key areas: production costs and logistics.

"Diesel is essential for the operation of machinery in the field and also for the transportation of production. When the price rises, the margins of rural producers are squeezed, especially at a time that is already challenging for the sector," he says.

In this context, increasing the biodiesel blend emerges as a strategy to reduce the country's energy vulnerability. Currently, Brazil still depends significantly on imports of fossil diesel.

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Currently, the mandatory blend is at 15% (B15). If this percentage is maintained throughout 2026, the projected demand is close to 10.5 billion liters of biodiesel .

If the federal government authorizes raising the blend to 16% (B16) starting in July , consumption could reach approximately 11 billion liters .

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Brazilian industries are prepared to meet higher blending levels, including B17 and even B18. "Installed capacity is robust and there is sufficient raw material. There is no risk of shortages. The sector even has some idle capacity and is only waiting for regulatory signals to expand production," says the director of Abiove. READ MORE

Excerpts from CNN Brazil (Google Translation): According to the organizations, the Brazilian industry has sufficient infrastructure to handle a blend of up to 21.6% biodiesel in mineral diesel. Given the international scenario of restricted diesel supply, the sector argues that the government should accelerate the testing process announced by the Ministry of Mines and Energy to evaluate higher levels of the biofuel.

The president of APROBIO, Jerônimo Goergen, stated that the sector sees no technical obstacles to carrying out the tests and called for greater speed in the process. READ MORE

Excerpt from CNN Brazil (Google Translation): With E30 gasoline and B15 diesel already in effect, Brazil is expanding the use of bioenergy in its fleet and discussing the move to B17 amid rising oil prices and geopolitical tensions.

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oday, the gasoline sold in the country already contains 30% anhydrous ethanol (E30), and the diesel sold at gas stations incorporates 15% biodiesel (B15), levels that place Brazil among the economies with the highest share of renewable fuels in the transportation matrix.

The impact of this structure is direct on fleet movement. With approximately 85% of light vehicles capable of operating on ethanol or gasoline, thanks to flex-fuel technology, the country possesses an unusual degree of energy substitution on a global scale. During periods of high oil prices, ethanol acts as a kind of natural price buffer, partially reducing the pressure on gasoline and helping to contain the inflationary impact of the fuel.

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Another significant challenge is the expansion of the Brazilian fleet itself. Even with a greater share of renewable fuels, the growth in demand for transportation tends to increase total energy consumption in the sector. This requires constant gains in agricultural productivity and industrial efficiency to sustain the expansion of biofuel supply.

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Meanwhile, new technologies are beginning to reshape the sector's landscape. Second-generation ethanol, produced from sugarcane waste, and the development of sustainable aviation fuels indicate that bioenergy can gain new markets beyond the road transport fleet. These advances reinforce Brazil's potential to consolidate its own model for decarbonizing transportation, based on the integration of agriculture and energy.

In a world marked by recurring geopolitical shocks and increasing pressure to reduce emissions, biofuels are once again assuming a strategic role. More than just an environmental policy, they represent an instrument for energy security and economic competitiveness. For Brazil, the sustainable expansion of this agenda could mean not only less dependence on oil, but also a new frontier of global leadership in the energy transition. READ MORE