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Agreement Signed Between Brazil and China in May 2025 Expands Bilateral Trade Focusing on Energy Transition, Biofuel Valuation, and New Sanitary Protocols
The Chinese government signed a memorandum with Brazil on May 13, 2025, allowing the entry of Brazilian ethanol into the Chinese market. During President Lula’s official visit to Beijing from May 12 to 14, 2025, he signed the agreement. Additionally, Minister of Mines and Energy, Alexandre Silveira, formalized the document with representatives of the National Energy Administration of China (NEA). Thus, the established guidelines promote energy cooperation between the two countries, also favoring future sustainable initiatives. This understanding directly contributes to the Chinese E10 program, which provides for the mixing of up to 10% ethanol in gasoline. The government resumed the program in 2025 after delaying its implementation for several years.
Exports of Brazilian Biofuels Are Expanded with a Focus on Environmental Goals
The memorandum recognizes the role of ethanol in the energy transition, particularly to reduce greenhouse gas emissions in line with the goals of the Paris Agreement. The text also mentions the socioeconomic and environmental benefits of low-carbon ethanol, considering its contribution to sustainable mobility and rural development. The initiative is also aligned with the goals of Brazil’s Nationally Determined Contribution (NDC), updated in 2023, for achieving carbon neutrality by 2050.
Ministry of Mines and Energy Highlights Economic Potential of the Measure
During a press conference on May 13, Minister Alexandre Silveira emphasized that Brazil aims to technically collaborate with China on emissions reduction in the transportation sector. According to Silveira, the “Future Fuel” program, launched in 2021, serves as the foundation for this cooperation, combining decarbonization with encouragement for the national biofuels industry. The minister also noted that the expansion of exports promotes job and income generation, particularly in the sugar-energy sector and among small producers.
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Ethanol Byproducts Market Is Open to Brazil with New Regulations
The protocol signed in May 2025 also enables Brazilian exports of DDGs (Dried Distillers Grains), primarily used in animal feed. The United States, previously leading suppliers of these products to China, accounted for 99.6% of Chinese DDG imports in 2024, according to data from the General Administration of Customs of China. Brazil, which has been expanding its corn ethanol production since 2016, is now competing in this market with growth prospects in the animal nutrition segment.
National Ethanol and DDG Production Expands to Meet New Markets
The National Union of Corn Ethanol (UNEM) announced on May 10, 2025, that at least ten new plants are under construction in states such as Mato Grosso, Goiás, and Paraná. These units are expected to become operational between 2025 and 2027, with the potential to meet the growing international demand for ethanol and DDGs. Brazil’s DDG production could reach 5 million tons in the 2025/2026 harvest, according to a technical report by UNEM published in April 2025.
Export of Meat and Fish Is Also Included in the Agreement Package
In addition to ethanol and DDGs, the Ministry of Agriculture and Livestock (MAPA) confirmed on May 14, 2025, the signing of new sanitary protocols with China. These agreements involve the export of chicken meat and wild-caught fish products, expanding the scope of commercial cooperation established between the two countries. The initiative strengthens the diversification of Brazil’s export agenda to China, its largest trading partner since 2009.
Partnership Contributes to Sustainable Energy Policies and International Alignment
The memorandum represents a significant advance in bilateral relations and, at the same time, promotes sustainable practices on a global scale, according to official sources. Additionally, the agreement strengthens Brazil’s position in the international arena, especially regarding energy transition and the use of biofuels and renewable sources. This cooperation also reinforces commitments to the UN 2030 Agenda and is aligned with global sustainability, innovation, and environmental responsibility goals.
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