Italy bets on Brazil's potential to lead the advance of biofuels and expand strategic cooperation in renewable energy, sustainability, and global emissions reduction.

Italy bets on Brazil’s potential to lead the advance of biofuels and expand strategic cooperation in renewable energy, sustainability, and global emissions reduction.

Written by Hilton Libório

Published on 08/05/2026 at 15:38

Updated 08/05/2026 at 15:39

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Italy expands agreements with Brazil on biofuels and renewable energy to accelerate energy transition and strengthen sustainable investments.

Italy has once again highlighted Brazil as a strategic partner in the development of biofuels and renewable energy technologies. The statement was made on May 4 during an event in Rome that discussed sustainability, industry, and the impacts of the agreement between the European Union and Mercosur.

The Italian government believes that biofuels will play an important role in the global energy transition. In this scenario, Brazil has gained relevance due to its experience in the production of ethanol, biodiesel, and renewable fuels.

Italy reinforces defense of biofuels in energy transition

During the event held in Rome, the Minister of Enterprises and “Made in Italy”, Adolfo Urso, stated that biofuels can help reduce emissions in the transport sector. According to him, Italy has been trying to convince other European countries about the importance of renewable fuels within the continent’s climate strategies.

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Brazil and Italy partnership gains strength with Mercosur and European Union agreement

The partnership between Brazil and Italy also gained momentum with the progress of negotiations between Mercosur and the European Union. During the meeting, Adolfo Urso described the agreement as the result of decades of discussions and stated that it could open a new phase in economic relations between the blocs.

According to the minister, Brazil holds strategic importance for Italy in both the industrial sector and the renewable energy area. Furthermore, the strong presence of the Italian community in Brazil was highlighted as an important factor for expanding commercial and cultural relations.

Among the sectors considered priorities within the partnership are:

biofuels;
logistics;
sustainable transport;
industrial machinery;
renewable energy.

Brazil expands global leadership in biofuels

Brazil is one of the world’s largest producers of biofuels and holds international prominence in the renewable energy sector. Brazilian leadership began to gain strength in the 1970s, with the National Alcohol Program, known as Proálcool.

Currently, the country continues to expand investments in:

ethanol;
biodiesel;
biogas;
green diesel;
sustainable aviation fuel.

Data from the Energy Research Company (EPE) indicates that about 49% of Brazil’s energy matrix is composed of renewable sources. This percentage places Brazil among the countries with the highest share of renewable energy in their energy matrix.

Italy sees renewable energy as an economic opportunity

Beyond environmental concerns, Italy also views biofuels as an industrial and economic opportunity. Barbara Cimmino, Vice President of Confindustria for exports and investment attraction, highlighted that trade between Italy and Mercosur moves over 17 billion euros.

According to her, approximately 80% of Italian commercial relations with the South American bloc are concentrated in Brazil. The executive also reported that trade between Brazil and Italy grew by 57% in the last ten years. Furthermore, Italian manufactured exports reached 5.7 billion euros in 2025.

Biofuels gain ground in hard-to-electrify sectors

Italy argues that biofuels can be fundamental in sectors where electrification still faces difficulties.

Among the main segments mentioned are:

heavy transport;
aviation;
maritime navigation;
industrial logistics;
agricultural machinery.

In these areas, renewable fuels appear as an alternative to reduce emissions without requiring radical changes to the current infrastructure. For this reason, the Italian government considers Brazil an important partner within its energy transition strategies.

Renewable energy gains priority after European energy crisis

In recent years, Europe has accelerated investments in renewable energy following the impacts caused by the international energy crisis. The conflict between Russia and Ukraine amplified concerns about energy security and dependence on fossil fuels.

In this scenario, European countries began to seek new strategic partners to expand access to renewable sources and essential raw materials. Barbara Cimmino stated that Brazil continues to be an important partner for access to strategic minerals and resources related to sustainability.

She also highlighted that economic growth and environmental protection need to go hand in hand to ensure commercial stability.

New tariff scenario may expand investments between Brazil and Italy

Representatives of the Italian industry stated that the new European tariff scenario could further expand trade relations with Mercosur. According to Confindustria, about 10% of European exports have had zero tariffs since May 1st.

The expectation is that new trade barriers will be progressively reduced in the coming years. Among the sectors that may benefit are:

biofuels;
chemical industry;
transport;
industrial machinery;
renewable energy.

The entity also confirmed a new business mission to Brazil and Argentina scheduled for September.

Brazil and Italy expand cooperation amidst the race for clean energy

The strengthening of the partnership between Brazil and Italy shows how biofuels have gained importance within global decarbonization strategies. By highlighting Brazil’s potential, Italy signals interest in expanding investments related to renewable energy and energy transition.

With bilateral trade exceeding 17 billion euros, 57% growth in the last decade, and Italian exports of 5.7 billion euros in 2025, cooperation between the two countries tends to gain even more relevance.

In a global scenario marked by the search for sustainable solutions, Brazil continues to consolidate its position as one of the main global protagonists in the biofuels and renewable energy sector.

With information from Terra

Italy bets on Brazil’s potential to lead the advance of biofuels and expand strategic cooperation in renewable energy, sustainability, and global emissions reduction.

Italy expands agreements with Brazil on biofuels and renewable energy to accelerate energy transition and strengthen sustainable investments.

Italy reinforces defense of biofuels in energy transition

Brazil and Italy partnership gains strength with Mercosur and European Union agreement

Brazil expands global leadership in biofuels

Italy sees renewable energy as an economic opportunity

Biofuels gain ground in hard-to-electrify sectors

Renewable energy gains priority after European energy crisis

New tariff scenario may expand investments between Brazil and Italy

Brazil and Italy expand cooperation amidst the race for clean energy

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Italy bets on Brazil’s potential to lead the advance of biofuels and expand strategic cooperation in renewable energy, sustainability, and global emissions reduction.

Italy expands agreements with Brazil on biofuels and renewable energy to accelerate energy transition and strengthen sustainable investments.

Italy reinforces defense of biofuels in energy transition

Brazil and Italy partnership gains strength with Mercosur and European Union agreement

Brazil expands global leadership in biofuels

Italy sees renewable energy as an economic opportunity

Biofuels gain ground in hard-to-electrify sectors

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New tariff scenario may expand investments between Brazil and Italy

Brazil and Italy expand cooperation amidst the race for clean energy

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