Brazil: A New Model for the Biodiesel Market
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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. The National Agency for Petroleum, Natural Gas and Biofuels (ANP) announced that the new model would allow biodiesel producers and distributors to settle over-the-counter (OTC) contracts to guarantee 80 percent of biodiesel supply for a two months period. ANP reported that imported biodiesel would be allowed in the country as of January 2023. ANP has also been working on a custody chain approach, which will likely include a mass balance method to overcome some of the obstacles faced by biodiesel and corn-ethanol producers to get certified under Brazil's National Biofuels Policy (Renovabio).
