RenovaBio: ANP regulates target reduction

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RenovaBio

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RenovaBio

On May 21, the ANP Board approved the new resolution that amends ANP Resolution No. 791, of June 12, 2019, related to the National Biofuels Policy – RenovaBio. The purpose of the change is to include the reduction of the individual annual targets of fuel distributors (obliged agents), due to the removal from circulation of Decarbonization Credits (CBIOs) by legal entities or individuals (not obligated agents).

The agents required to acquire CBIOs are fossil fuel distributors. Unobligated agents, on the other hand, are legal entities or individuals interested in mitigating their greenhouse gas emissions.

The newly approved resolution is based on Resolution No. 8/2020 of the National Energy Policy Council (CNPE). This act determined that the ANP regulates the reduction of individual targets of distributors in the same proportion as the CBIOs removed from circulation by non-obligated agents.

ANP will release targets and calculations

The ANP will annually disclose on its website the preliminary targets and the data used for their calculation, in the month of December of the year prior to the effective date of the individual annual target. The calculation of definitive targets for obligated agents, which will be published by the ANP until March 31 of the target’s effective year, will use fossil fuel movement data, considering the period from January to December of the previous year.

With the new resolution, before calculating the individualization of the annual goals of each distributor, the ANP will reduce the number of CBIOs permanently removed from circulation in the market, in the year prior to the effectiveness of the goal, by a non-obligated party, of the annual goal established by the CNPE.

Another point of the resolution refers to the possibility that CBIOs retired by distributors in quantities greater than the goals established for a given year may be considered for the fulfillment of the goal for the following year.

Final text had suggestions

The draft resolution underwent a 15-day public consultation, having received 15 suggestions and comments, and an online public hearing with 70 participants, on 12/21/2020. Part of the contributions received were accepted, in whole or in part, to consolidate the final text of the resolution.

RenovaBio is the National Biofuel Policy and aims to expand the production of biofuels in Brazil, based on predictability, environmental, economic and social sustainability, and compatible with market growth. In 2020, the first year of its effective operation, the results portray the success of the Policy. ANP approved 213 processes for the Efficient Production of Biofuels Certification. With the start of operationalization of the CBIO Platform, a tool made available by SERPRO through a contract with the ANP, certified biofuel producers started generating CBIO guarantees, allowing the bookkeeping and trading of credits on the B3 stock exchange. As for the decarbonization target established for the 2019-2020 period by the CCNPE, equivalent to 14.9 million CBIOs, 18.7 million were generated, of which about 15 million were sold at B3 at an average price of R$ 43.41 .

See Resolution No. 843/21, published in the DOU on 5/24/2021
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