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Expansion of Benefits to Sugarcane Producers: The Case of CBIOs in ORPLANA and Their Influence on the Biofuel Industry

Written by Paulo Nogueira
Published on 11/08/2023 at 15:10
Reunião da ORPLANA, em Brasília, com o deputado Benes Leocádio, relator do PL 3149 2020
Reunião da ORPLANA, em Brasília, com o deputado Benes Leocádio, relator do PL 3149 2020
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ORPLANA Seeks Parliamentary Support for a Law That Will Increase Sugarcane Producers’ Participation in the Issuance of Decarbonization Credits (CBIOs) Within the RenovaBio Program.

ORPLANA – Organization of Sugarcane Producers Associations of Brazil, a relevant entity in the biofuels industry, is leading an initiative to change existing legislation. Last Wednesday (9), the organization’s CEO, José Guilherme Nogueira, and the relationship manager, Luiza Magalhães, met in Brasília with Deputy Benes Leocádio (UNIÃO-RN), the rapporteur of Bill 3149/2020 in the House of Representatives’ Mines and Energy Commission.

The meeting was scheduled to seek support for the approval of a law that will expand the benefits of Decarbonization Credits (CBIOs), a key element in the National Biofuels Policy (RenovaBio), to include sugarcane producers. So far, only the industry had access to these credits, a situation that ORPLANA seeks to change.

Processing and Details of the Project

The project has already passed the scrutiny of the Agriculture Commission and is currently under analysis in the House of Representatives’ Mines and Energy Commission. However, it still awaits evaluation from other commissions, including Environment and Sustainable Development, Finance and Taxation, and Constitution and Justice, before being sent for Senate approval.

The legislative text provides for a restructuring of the remuneration of CBIOs and proposes a division in the sale, allocating 80% of the funds to rural producers of raw materials for biofuels. The approval would benefit not only sugarcane producers, but also other productive chains such as soy, corn, castor, and palm oil.

A Step Towards Decarbonization

Deputy Leocádio was receptive to the concerns presented by ORPLANA, understanding the importance of the project for rural producers. The issue of CBIOs is vital to encourage independent biofuel production, essential in the global journey towards decarbonization.

José Guilherme Nogueira expressed optimism after the meeting, emphasizing that “Rural producers need to have this independence regarding CBIOs, without depending on the biofuel production unit, especially since this raw material will become the biofuel that will help decarbonize the planet.”

The meeting between ORPLANA and Deputy Benes Leocádio marks an important step in the fight for fairer legislation in the biofuels sector. The approval of the bill would represent a significant milestone for rural producers and the National Biofuels Policy, aligned with sustainable development and decarbonization goals. The situation continues to be closely monitored by stakeholders in the energy and environment sector, highlighting the importance of inclusive policies that benefit everyone involved in the biofuels production chain.

Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

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