Brazil’s ethanol industry rebounds for Q3


Brazil lowered RenovaBio’s 2020 target 50% due to the impact of COVID-19 on fuel markets


By Gabriel Miranda, EcoEngineers


Brazil’s ethanol industry had a great Q3. On September 10, Brazil’s Ministry of Mines and Energy released the revised decarbonization credit (CBIO) target for 2020 and 2021 under RenovaBio, Brazil’s national biofuel policy. The revised target for 2020 is 50% lower than the previous target due the impact of COVID-19 on fuel markets, and the 2021 target had a 41% reduction compared to initial goals set for the program.

The effect of the target revision was immediate. The volume of transactions skyrocketed after the new target was published, and the volume of transactions in September surpassed the accumulated transactions from the previous four months. The CBIO prices followed the same growth trend. Both statistics can be seen in Figure 1.

Renovabio Firgure 1

Figure 1

With this growth trend, UNICA, the Brazilian sugarcane industry association, believes there will be enough CBIOs to meet 2019 and 2020 emission targets by the beginning of December.

The Brazilian import quota renewal also garnered some attention in September. U.S. ethanol’s 750-million liter tax-free quota was about to expire. After tense negotiations, a 90-day extension of the 2019 import quota was granted by Brazilian authorities.

Although a final resolution has not been reached, the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association are actively seeking a favorable outcome for the U.S. ethanol industry.

At EcoEngineers, we believe global ethanol trade will increase over time as more countries incorporate clean fuel policies. Our commentary on the RenovaBio program requirements, provides an overview of this opportunity for U.S. ethanol. We are positioned to help U.S. ethanol producers harness carbon credits from the RenovaBio program.

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Gabriel Miranda

Gabriel Miranda is a Regulatory Consultant for EcoEngineers, specializing in carbon modeling and RenovaBio. Miranda holds a master’s degree in agricultural engineering from Purdue University and bachelor’s degree in industrial engineering from Universidade Federal do Rio Grande do Norte in Brazil. He is fluent in English and Portuguese. You can reach him at or 515.985.1287.





Bonanomi, A. M. (2020, October 1). UNICA – RenovaBio chega a 10 milhões de CBIOs emitidos. Retrieved from

Bonanomi, A. M. (2020, October 1). UNICA – RenovaBio chega a 10 milhões de CBIOs emitidos. Retrieved from

Ramos, C. S. (2020, September 16). Venda de CBios cresce após governo oficializar metas do RenovaBio. Retrieved from