Browse Data and Analysis

On October 17, 2024, the Tariff Changes Committee (CAT) of the Chamber of Foreign Trade (Camex) rejected the request made by the Brazilian Association of Fuel Importers (ABICOM) and the U.S. Grains Council to remove the 18 percent tariff on ethanol imports to Brazil.

Brazil is the world’s second-largest ethanol and third-largest biodiesel producer but has yet to introduce renewable diesel or sustainable aviation fuel. Post forecasts total ethanol production at 32.5 billion liters in CY 2024, with cane ethanol forecast at 25.5 billion liters and corn ethanol production at seven billion liters.

During the past few years, the landscape for U.S. renewable diesel production has drastically changed, akin to the growth of ethanol and biodiesel during the past two decades. Driven by federal and state policies aimed at reducing emissions, this dramatic U.S. renewable diesel production and capacity growth is causing significant, market-altering shifts both domestically and to foreign feedstock trade.

Total Brazilian ethanol production for 2023 is estimated at 32.95 billion liters, an increase of seven percent relative to 2022 due to the expected increase in sugarcane production and the steady increase in corn ethanol production.

Total Brazilian ethanol production for 2022 is estimated at 31.66 billion liters, an increase of six percent relative to 2021 due to the expected increase in sugarcane production and the steady increase in corn ethanol production.

On Monday, March 21st, the Government of Brazil (GOB) decided to temporarily eliminate the import tariff of ethanol, as well as five other agricultural products (coffee, margarine, cheese, spaghetti, sugar, and soybean oil).

The Brazilian Low Carbon market framework has successfully been set. Renovabio was implemented in late 2019 and has progressed well.

On December 30, 2020, the Brazilian National Biodiesel Production Program (CNPE) issued Resolution #14 with guidelines to implement a new market environment for biodiesel trade, which should replace the current biodiesel public auctions.

On January 20, 2021, Brazilian President Jair Bolsonaro sent newly inaugurated President Biden a letter noting that Brazil has demonstrated its commitment to the Paris Agreement.

On November 18, the Brazilian National Energy Policy Council published a resolution to allow for the use of imported materials – either raw soybeans or soybean oil - in the production of biodiesel.

Plentiful, and generally cheap, corn supplies in Brazil’s Center-West region have enticed investment in the corn ethanol sector over the last few years.

Total ethanol production for 2020 is estimated at 31.35 billion liters, a decrease of 16 percent relative to the revised figure for 2019 (37.38 billion liters), mainly because...