Portuguese 
English 
Spanish 
5 min of reading 
0 comments 
Brazil and the United States Reinforce International Cooperation in Biofuels in 2025. Global Leaders in Ethanol, the Two Countries Aim to Open New Markets and Expand Sustainable Use in Aviation
Brazil reaffirmed its position as a leader in the biofuels sector by advocating for the maintenance of the 18% tariff on ethanol imported from the United States, classifying the measure as fair given the need for balance in the international market. At the same time, it proposed a strategic partnership with the Americans to open new global markets, including aviation, which seeks sustainable alternatives to reduce carbon emissions.
The initiative comes at a time of trade tensions, after the U.S. opened an investigation into Brazil’s biofuels policy. However, the Brazilian government’s response points to cooperation, not confrontation: joining forces to solidify both countries’ positions as global leaders in ethanol.
Brazil and the United States in Defense of International Cooperation in Biofuels
Brazil and the United States account for over 80% of global ethanol production, according to data from the International Energy Agency (IEA). This shared leadership places them in a privileged position to influence the sector’s direction.
-
For the first time since the 1962 Missile Crisis, the United States has again blocked oil tankers bound for Cuba — and the island, which needs eight shipments per month, has received only one in the last five.
-
US retaliates against Iran’s attack in the Strait of Hormuz and destroys vessels after missile and drone offensive, states US military commander
-
Gasoline at US$ 4.45 and ships stuck in the Strait of Hormuz lead Trump to launch Project Freedom with US escort starting Monday, in an attempt to unblock the world’s most sensitive oil route.
-
Brazilian ethanol can replace 1 billion liters of imported gasoline in 2027, while the war in Iran accelerates an energy crunch that could make Brazil the only country in the world with competitive fossil and renewable fuels at the same time.
While the Americans dominate production from corn, Brazil excels in cane sugar ethanol, recognized for its high energy efficiency and lower environmental impact.
The Brazilian proposal goes beyond the simple defense of the 18% tariff. It is an invitation to international cooperation in biofuels, aimed at transforming the trade dispute into a joint strategy to open markets, drive technological innovations, and solidify ethanol as a pillar of the global energy transition.
The 18% Tariff and the Brazilian View on Justice in the Market
The Brazilian government argues that the tariff applied to ethanol imported from the U.S. does not represent a protectionist barrier but rather a balancing mechanism to protect local competitiveness.
The Union of the Sugarcane Industry (Unica) emphasizes that the cane ethanol produced in the country has a lower production cost and greater energy efficiency compared to corn ethanol, justifying the need for regulation to avoid market distortions.
According to the Ministry of Agriculture, Livestock and Supply (Mapa), the measure ensures fair competition conditions, preserving investments in the national production chain and strengthening the sugar-energy sector. This viewpoint supports that rather than generating friction, maintaining the tariff could be a starting point for a broader Brazil-U.S. partnership.
Cooperation Brazil U.S.: Opening New Strategic Markets
The Brazilian cooperation proposal seeks to open doors to strategic markets still underexploited by ethanol. Among them, aviation stands out, a sector responsible for about 2% of global CO₂ emissions, according to the International Civil Aviation Organization (ICAO).
With the advancement of global decarbonization targets, the demand for sustainable aviation fuels (SAF) is increasing.
Ethanol can play a central role in this movement, especially through the technological route known as Alcohol-to-Jet (AtJ), which converts biofuel into aviation fuel. This alternative is already being tested by airlines and aircraft manufacturers.
By joining forces, Brazil and the United States can not only expand ethanol’s presence in the automotive sector but also position themselves as leaders in the global aviation decarbonization effort.
Global Leaders in Ethanol: Brazil and the U.S. at the Center of the Energy Transition
While Europe invests in green hydrogen and China accelerates electrification, Brazil and the U.S. see ethanol as a clean, scalable, and competitively priced solution to reduce emissions in the short and medium term. The biofuel already represents about 50% of the energy consumption of light vehicle fleets in Brazil, according to data from the Energy Research Company (EPE).
In the United States, although ethanol accounts for a smaller share, it is blended into gasoline in varying proportions, forming a robust market. This complementarity between the two giants reinforces the argument that cooperation can amplify mutual gains, while also contributing to the global goal of carbon neutrality by 2050.
Aviation as a Frontier for International Cooperation in Biofuels
Aviation emerges as one of the most promising areas for the Brazil-U.S. partnership. A report from the International Energy Agency (IEA) highlights that sustainable aviation fuel production needs to grow more than tenfold by 2030 to meet the established climate targets.
Ethanol, especially the one produced from sugarcane, can become a competitive raw material in this segment. Studies from the University of São Paulo (USP) indicate that cane ethanol has the potential to reduce greenhouse gas emissions by up to 70% compared to traditional fossil fuels.
Combined with the technological know-how of the United States and Brazil’s consolidated production base, this cooperation can accelerate the adoption of clean solutions in global aviation.
Brazil-U.S. Partnership and the Impact on the Global Biofuels Economy
The proposed alliance is not limited to the environmental field. There are direct impacts on the global biofuels economy. Opening new markets would strengthen Brazilian exports, enhance U.S. energy security, and create opportunities for technological innovation.
According to the International Renewable Energy Agency (IRENA), the liquid biofuels market could generate over US$ 500 billion by 2050. In this scenario, the partnership between Brazil and the United States, global leaders in ethanol, would have the capacity to influence prices, regulatory standards, and global supply chains.
Moreover, international cooperation in biofuels would favor investments in research, development, and infrastructure, increasing ethanol’s competitiveness against other renewable sources.
International Cooperation in Biofuels as a Response to Trade Tensions
The investigation opened by the United States into Brazil’s ethanol policy could heighten tensions between the two countries. However, Brazil’s strategy of proposing cooperation proves to be diplomatic and pragmatic. Instead of fueling disputes, the idea is to turn the scenario into an opportunity for mutual gains, strengthening both the productive sector and the geopolitical position of both nations.
This repositioning is strategic: Brazil and the U.S. can take the lead not only as producers but as global articulators of sustainable policies. By presenting ethanol as a clean and economically viable solution, both can attract the interest of developing countries, especially in Asia and Africa, where energy consumption is rapidly growing.
The Future of Ethanol in the Global Climate Agenda
The debate surrounding the Brazil-U.S. partnership to open strategic ethanol markets in 2025 reflects a paradigm shift. Instead of pure competition, cooperation emerges as a path to expand the relevance of biofuels on a global scale.
Ethanol, produced on a large scale by global ethanol leaders, has proven efficient in the transportation sector and now presents itself as a promising solution for aviation. Strengthening this agenda could place both countries at the center of the global energy transition, reinforcing their roles as active agents in combating climate change.
More than a commercial issue, the unification of efforts between Brazil and the United States represents a strategic step toward a cleaner, more inclusive, and sustainable energy future.
Be the first to react!