Brazil’s biofuels industry: Lessons, challenges and opportunities

Brazil has emerged as a global leader in biofuels, particularly in ethanol and biodiesel production, driven by decades of strategic policies, innovation and sustainability efforts. The country’s biofuel industry plays a crucial role in reducing greenhouse gas emissions, enhancing energy security, and supporting economic development. Ethanol, primarily derived from sugarcane, has significantly lowered carbon footprints, while biodiesel – produced mainly from soy beans – is expanding under rising blending mandates.

Programs and legislation including RenovaBio and the Fuel of the Future Law promote the integration of biofuels in the energy mix through incentives and regulatory frameworks. Additionally, investments in advanced biofuels, including second-generation ethanol and sustainable aviation fuel, highlight Brazil’s commitment to the evolving energy transition.

Brazil’s biofuel policies contribute to a balanced approach to sustainability, economic growth and technological advancement by carefully addressing challenges in land-use management and fossil fuel price dynamics. As global demand for renewable energy grows, Brazil's experience provides insights for other nations developing their bioenergy sectors.