New regulatory framework boosts national programs for sustainable aviation fuel, green diesel and biomethane

On October 8, 2024, President Lula sanctioned Law No. 14,993, which establishes the National Sustainable Aviation Fuel Program (SAF), the National Green Diesel Program, and the Biomethane Incentive Program. Called the “Fuel of the Future Law,” the law also regulates carbon capture and storage (CCS) activities, the production and sale of synthetic fuels, and changes the limits on the blending content of ethanol in gasoline and biodiesel in diesel.

The implementation of the SAF incentive program is highly relevant, as envisages reducing greenhouse gas (GHG) emissions by airlines in their domestic operations by 1% each year, starting in 2027, totaling 10% reduction in 2037 by mixing SAF with the aviation kerosene currently used.

The National Decarbonization Program for Natural Gas (NG) Producers and Importers and the Incentive for Biomethane predicts a reduction in GHG emissions due to the use of NG in Brazil of 1% in 2026 through the mixing of biomethane with NG. The law also provides that the CNPE may increase the GHG emissions reduction target by up to 10%.

The regulation of CCS activities and the production of synthetic fuels also stand out. Carbon capture and storage is another very important tool in the set of solutions to reduce GHG emissions. and collaborate so that the Brazil achieves its GHG emissions reduction target of 53% by 2030, stipulated in the Brazilian NDC.

“This is an extremely important step, as it has the potential to drive sustainable economic growth and reinforce Brazil’s position as a major leader in the use of renewable energy. These actions will allow for the expansion of the use of a range of sustainable fuels in the country, in addition to regulating the CCS tool,” says Aline Carvalho, coordinator of the CEBDS Technical Chamber for Climate, Energy and Finance.

The new law establishes that the National Agency of Petroleum, Natural Gas and Biofuels (ANP) will be responsible for regulating and controlling the production and sale of these fuels. The National Council for Energy Policy (CNPE) will be responsible for ensuring the compatibility of the RenovaBio, Mover, PBEV (Brazilian Vehicle Labeling Program) and the Vehicle Emissions Control Program (Proconve).