Fuel of the Future

One of the Ministry of Mines and Energy’s key achievements in 2023–2024 was the enactment of the Fuel of the Future Law, on October 9, 2024. Drafted in partnership with other ministries, the National Congress, and the private sector, the law originated from a bill introduced by President Luiz Inácio Lula da Silva and was unanimously approved by Congress after four months of debate and refinements.

The law elevates biofuels to a new level, expanding the role of ethanol, biodiesel, sustainable aviation fuel (SAF), green diesel, and biomethane. In doing so, Brazil strengthens its energy transition platform and opens broader opportunities for private national and international companies engaged in decarbonization, in response to the urgent need to mitigate climate change.

With R$ 260 billion in investments expected by 2037, the Fuel of the Future framework addresses one of the main barriers to private investment: the lack of predictable demand to support decisions for building new projects.

The legislation promotes a wide range of initiatives for sustainable, low-carbon mobility and further consolidates Brazil’s role as a leader in the global energy transition. Private business groups have already announced investment commitments of around R$ 20 billion in new projects.

Once fully implemented, the law is expected to prevent the emission of 705 million tons of CO₂ by 2037, reaffirming Brazil’s commitment to reducing greenhouse gases.

MAIN BENEFITS 

• Boost economic development through expanded agricultural production, new industrial plants, infrastructure projects, and technologies

• Job creation, higher income, and social inclusion

• Reduced pollution in urban areas and environmental preservation

• Expansion of clean and renewable energy use, lowering carbon emissions

• Greater energy security through diversification of sources and a more stable, reliable supply

• Reduced dependence on imported fuels

KEY MEASURES INTRODUCED 

Expands the share of biofuels in the energy matrix

Incorporates Sustainable Aviation Fuel (SAF) and green diesel into the matrix

Integrates public policies for sustainable, low-carbon mobility (RenovaBio, Mover Program, PBE Veicular)

Establishes a legal framework to attract investment in carbon capture and storage (CCS)

Raises blending limits to up to 35% ethanol in gasoline and 25% biodiesel in fossil diesel, subject to technical feasibility

Introduces measures to decarbonize the natural gas sector through the mandatory use of biomethane.

The Fuel of the Future Law has four pillars:

1. Creation of new programs for biofuels

Three national programs were launched to encourage research, production, commercialization, and use of biofuels, promoting the decarbonization of the transport and mobility matrix:

• National Green Diesel Program (PNDV) – Each year, the National Energy Policy Council (CNPE) will define the minimum volume of green diesel—produced exclusively from renewable biomass—to be blended with fossil diesel. The mandatory blend is capped at 3%, but voluntary higher blends are allowed.

• National Sustainable Aviation Fuel Program (ProBioQAV) – Beginning in 2027, airline operators will be required to reduce GHG emissions on domestic flights through the use of Sustainable Aviation Fuel (SAF). Targets start with a 1% reduction and gradually increase to 10% by 2037. These are relative reduction targets, calculated against emissions that would occur without SAF.

• National Program for the Decarbonization of Natural Gas Producers and Importers and Incentives for Biomethane – Focused on increasing the share of biomethane and biogas in Brazil’s energy matrix. The CNPE will set annual targets for reducing emissions in the natural gas sector through biomethane use. Obligations for producers and importers begin in January 2026, starting at 1% and capped at 10%.

2. More ethanol in gasoline and more biodiesel in diesel

On June 25, 2025, the National Energy Policy Council (CNPE) approved an increase in the mandatory ethanol blend in gasoline—from 27% to 30% (E30)—and in the biodiesel blend in diesel—from 14% to 15% (B15). The measure will take effect on August 1, 2025, enabling Brazil to advance toward greater energy self-sufficiency while reducing fuel prices. President Luiz Inácio Lula da Silva, Minister of Mines and Energy Alexandre Silveira, and other cabinet ministers who make up the CNPE participated in the decision.

With the transition to E30 alone, more than R$10 billion in investments and the creation of over 50,000 jobs are expected. In biodiesel, R$5.2 billion in investments in new plants and soybean crushers are projected. In family farming, the change will benefit 5,000 new families integrated into the Social Biofuel Seal Program, with an increase of R$600 million in income.

Estimates for the new blend indicate that gasoline prices at gas stations could fall by as much as 20 cents for consumers.

The CNPE’s decision was based on a rigorous technical process coordinated by the MME. The E30 tests were conducted by the Mauá Institute of Technology, with the active participation of vehicle manufacturers, importers, and representatives of the automotive industry. The results, presented in March this year, confirmed the safety and technical feasibility of the new blends, allowing immediate adoption without negative impacts on vehicles or consumers.

The implementation of E30 and B15 reduces Brazil’s dependence on fossil fuels, lowers the need for imports, expands the use of domestically produced renewable fuels, strengthens national production, reduces emissions, and contributes to the country’s sustainable economic development.

3. Carbon capture and storage

The Fuel of the Future Law also grants the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) the authority to regulate and oversee activities related to carbon dioxide capture and geological storage, as well as the production and commercialization of synthetic fuels.

In order to regulate the issue and implement public policies aimed at both carbon sequestration and the definition of guidelines for the associated business model, the Executive Technical Subcommittee of CCUS (acronym for Carbon Capture, Utilization and Storage) was established in July 2025. It is responsible for proposing legal and infra-legal improvements that ensure greater legal certainty and attractiveness to investments in technologies related to multiple geological carbon sequestration routes.

The subcommittee’s strategic objectives are to support Brazil in the goal of achieving climate neutrality by 2050, making the energy sector a net carbon sink and consolidating concrete commitments for COP30. Since its creation, the group has been holding several meetings and advancing in the construction of proposals to ensure the effective delivery of these results.

4. Integration for sustainable mobility

The law promotes the integration of initiatives and measures established under the following policies and programs to advance low-carbon sustainable mobility:

• National Biofuels Policy (RenovaBio)

• Green Mobility and Innovation Program (Mover Program)

• Brazilian Vehicle Labeling Program (PBEV)

• Vehicle Emissions Control Program (Proconve)

10 MEASURES TO COMBAT FUEL FRAUD

The Ministry of Mines and Energy (MME) is leading a series of actions to combat fraud and criminal practices in the fuel sector. This package brings together ten measures implemented since 2023, already regarded by the Federal Government as a milestone in building a safer, fairer, and more efficient market for Brazilian consumers.

The problem is serious and occurs across the entire country. It ranges from fuel adulteration at gas stations and irregular distribution to sophisticated tax fraud, piracy on waterways, and the reception of fuel diverted from pipelines and clandestine refineries.

To address the situation, the MME has coordinated efforts with the National Agency of Petroleum, Natural Gas, and Biofuels (ANP), the Federal Police, the Civil House, the Ministries of Finance, Justice, and Management and Innovation, as well as representatives of the productive sector and members of Congress.

The measures include legislative changes, regulatory improvements, and coordination with law enforcement and public security agencies. The initiative was developed based on the diagnosis that the fuel market continues to suffer from illegal practices that harm not only consumers but also tax revenues, environmental commitments, and the credibility of institutions.

NUMBERS

IMPACT

• R$ 260 billion in planned investments
• 705 million tons of CO2 emissions avoided

PRIVATE INVESTMENTS ANNOUNCED TOTAL: R$ 19.55 BILLION

Raízen – R$ 10.43 billion in the implementation of eight second-generation ethanol (E2G) plants.

Raízen – R$ 345.3 million in the implementation of the second biomethane plant.

Inpasa – R$ 3.4 billion over the next 18 months, in two ethanol plants and the construction of a biorefinery in Luís Eduardo Magalhães (BA).

Grupo Potencial – R$ 3 billion in biodiesel, with emphasis on the expansion of the Lapa (Paraná) unit, which will become the largest single-plant producer in the world.

Be8 – R$ 400 million in a biodiesel project in Uberaba (MG).

Virtu GNL, Eneva, and Edge – R$ 1.3 billion for the creation of a 3,000 km green corridor for the transport of liquefied natural gas (LNG), connecting the port of Santos (SP) to the port of São Luís (MA).

FS Group – R$ 558 million in a carbon capture and storage (CCS) plant associated with ethanol, in Lucas do Rio Verde (MT).

Shell – R$ 120 million for the implementation of a bioenergy research center, in partnership with Raízen and Senai-SP.

DATES

• 09/18/2023 – Presentation of Bill 4,196/2023 by the Federal Government

• 04/13/2024 – Approved by the Chamber of Deputies

• 09/04/2024 – Approved by the Federal Senate

• 09/11/2024 – Definitively approved by the Chamber of Deputies

• 10/08/2024 – Sanctioned as Law 14,993/2024 by President Luiz Inácio Lula da Silva at the Liderança Verde Brasil Expo event, at the Brasília Air Base

• 10/09/2024 – Published in the Federal Official Gazette, entering into force

• 04/02/2025 – Publication of the E30 Test Report conducted by the Mauá Institute of Technology

• 05/16/2025 – First Meeting of the Permanent Technical Committee on Fuel of the Future (CTP-CF), consolidating governance guidelines and initiating the implementation of the work agenda planned for 2025

• 05/21/2025 – Public hearing on the proposed decree regulating the National Program for the Decarbonization of Natural Gas Producers and Importers and Incentives for Biomethane

• 06/25/2025 – CNPE Resolution No. 9/2025 establishing the new ethanol content (30%) in C gasoline sold throughout the national territory as of August 1, 2025

• 06/25/2025 – CNPE Resolution No. 8/2025 establishing the new biodiesel content (15%) in diesel B sold throughout the national territory as of 08/01/2025