Biodiesel in Brazil Should Take Off with the Newly Introduced Domestic Biofuels Policy: RenovaBio

Our planet’s climate has experienced changes mainly ascribed to the emission of carbon dioxide (CO2), which accumulates in the atmosphere and causes an increase in the Earth’s average temperature. In 2015, heads of state and scientists from several countries met in Paris to discuss measures aimed at curbing greenhouse gas emissions in order to limit that temperature rise to 2°C by the end of this century. As CO2 needs to be banned from our environment for the sake of our own planet, it is reasonable for biofuels to present themselves as clean alternatives for the gradual replacement of fossil fuels. Biodiesel stands as an option. After 2005, some public policies were created in Brazil as an attempt to establish biodiesel as a replacement for mineral diesel, mainly in the transport sector. Although moderately successful, none of them compare in scope and reach to RenovaBio, a domestic biofuels policy that will make the production and use of biodiesel take off, once and for all. Therefore, herein, we present a brief overview on the status of the biodiesel production and use before the enactment of this new biofuels policy and the forecast of what it is expected to happen after its implementation

Understanding the bioeconomy through its instruments: standardizing sustainability, neoliberalizing bioeconomies?

Sustainability standards have been one of the hopefuls for decades when it comes to ensuring the sustainability of biomass for the bioeconomy, especially in the wake of their evolvement from voluntary, non-governmental to hybrid, public–private governance instruments in recent years. In addition to doubts regarding their legitimacy and effectiveness, however, they have also been associated with a neoliberalization of nature that integrates natural resources into a free market logic. Drawing on a conceptual framework that builds on political ecology and the political sociology of policy instruments, this paper challenges this notion. To this end, it examines sustainability standards in three countries/regions particularly prominent for the bioeconomy—the EU, Brazil, and Indonesia—to illustrate how these can be differentiated in terms of their neoliberal orientation, and what can be inferred from this for the orientation and state of the respective bioeconomies. The results show that the introduction of sustainability standards is not necessarily accompanied by a neoliberalization of nature. Rather, it is shown that the standards and their specific designs—and thus also their intrinsic understanding of sustainability as integration—are primarily intended to serve the material interests of the state and the respective industrial factions, for which neoliberal configurations are sometimes seen as rather obstructive, sometimes as rather useful. The sustainability standards, and thus the bioeconomies for which they stand, therefore, rather serve as instruments to stay on the path of modernization and industrial development already taken or envisaged, or, put differently, as strategies to avoid social–ecological transformation.Peer Reviewe

Three essays on biofuel policies and aggregate supply curve

The first essay investigates the impacts of Brazil's new biofuel policy, namely RenovaBio. RenovaBio aims to reduce greenhouse gas (GHG) emissions in the transportation sector through expansion of biofuels by requiring tradable decarbonization credits (CBIOs) associated with the GHG reductions achieved by biofuels. We model the CBIO and fuel markets using a partial equilibrium model to simulate the impacts of RenovaBio. As a result of the implementation of RenovaBio, biofuel consumption increases, and petroleum product use decreases to meet the CBIO compliance targets. Perhaps because of reduced targets during the pandemic, CBIO prices remain low, but our estimates highlight the potential for higher prices and large impacts. Results also show that RenovaBio can cause 7.2 percent of GHG abatement with an annual average compliance cost of R$ 36.3 billion. Total compliance costs are reduced if CBIO compliance targets are relaxed or there is good progress reducing biofuel carbon intensities. The second essay investigates the pass-through of the biodiesel-diesel price spread and BTC to the RIN price and estimate whether the market expectations about the reinstatement of the BTC have affected the RIN prices. The USA biodiesel tax credit (BTC) is a subsidy that could affect the cost of biofuel mandates in that country, but with uncertainty because the BTC is not continuously in place and is otherwise retroactively applicable. The biofuel mandate compliance certificate (RIN) price presumably depends on the price of fuels, such as biodiesel and diesel, as well as the BTC. Our estimated results shows that market participants' responses to the uncertainty of BTC might be different across time. These results could raise questions about whether an inconsistently applied BTC in the context of a blend mandate encourages biofuel expansion. The last essay develops aggregate supply response of Korean rice farms from the results of farm-level estimation. We first estimate supply components using detailed farm-level data. The farming area, land productivity, and farm exit are examined to see how those components are affected by the rice price and other determinants. We also estimate the debt-to-asset ratio that could influence farming area and farm exit. Then, we simulate the short- and long-run supply curves implied by aggregating farm-level responses to price changes. Given the price changes in our simulations, the price elasticities of Korean rice production are between 1.00-1.79 in the short run and 1.57-2.77 in the long run. The decomposed aggregate supply response into its three components shows that supply response might be under-estimated when we focus on only a component of total supply.Includes bibliographical references

Case study: Lifecycle Assessment and CBios Emission Factor for biodiesel production with variation of the biomass and eligibility criteria

The Brazilian National Biofuels Policy (RenovaBio) has as its main purpose to promote the growth of the biofuels chain in Brazil, from more efficient and sustainable production models, culminating in the reduction of greenhouse gas (GHG) emissions, as well as contributing to the fulfillment of the commitments assumed by the country at COP-21. RenovaCalc is a tool from RenovaBio that is capable of analyzing lifecycle inventory data of background processes, added to the technical parameters of agricultural and industrial production that is informed by the biofuel producer. The final product is given through an Energy-Environmental Efficiency Grade (NEEA). In this context, NEEA, together with raw material eligibility values, will serve as the basis for the calculation of decarbonization credits (CBios). Given this context, the present study sought to investigate three scenarios: S1: excluded agricultural phase; S2: 100% eligible soy combined with the use of beef tallow, and S3: production of biodiesel with 100% soybean oil. The study compared two biodiesel producing national industries to NEEA certified by the Brazilian National Office of Petroleum, Natural Gas and Biofuels (ANP). It can be concluded that NEEA does not have a direct influence on the quantity of CBios to be traded, that is, the highest ratio is given from the eligibility (%) of the raw material chosen for the production of the fuel. Thus, scenario 2, which relied on the use of waste, proved to be 10 times more profitable compared to the other scenarios, in both analyses, due to its high eligibility. However, in terms of NEEA, it was noted that the exclusion of the agricultural phase (scenario 1) was the one that was most efficient in terms of gCO2 eq./MJ. It is relevant to emphasize the importance of proper handling and practices that guarantee the traceability of the grain so that the eligibility indexes are optimized

Analysis of Incentive Policies for the Use of Biomass as Energy Source

In the search for solutions on the efficient use of natural resources, much has been discussed about the importance of effective public policies, as a way to minimize problems with the scarcity of natural resources, and how to achieve the desired sustainability through the implementation and exploitation of natural resources. renewable energy sources generated by the expansion of energy supply, one of which being natural resources is Biomass. In this context, biomass emerges as a great potential to solve, or at least mitigate the effects of using petroleum-based energy sources, contributing to the reduction of greenhouse gases (GHG), the implementation of public incentive policies. The use of renewable sources has become a more than current theme in the various rounds of debates on the improvement of climatic conditions in Brazil and in the world. The objective of the research was to identify the incentive policies adopted by the Brazilian government that made possible the advances and contributions generated by the use of Biomass as a renewable energy source within the national territory. The adopted method considered the aspects of a descriptive, exploratory study, with a qualitative approach based on a survey of the theoretical framework, which was used as material, books and original articles based on electronically available databases, to review the literature. available literature. The results of this study show that several benefits have been found through the use of renewable energy sources such as biomass, but this energy source is still not widespread in the country, where this is attributed to the scarcity of public incentive policy that in its great Most address the use of renewable energy as a whole, specifying the use of biomass without differentiation

Impact Assessment of Information and Communication Technologies in Agriculture: : Application of The Ambitec-TICs Method

An extraordinary moment of agricultural modernization is currently underway due to innovations in Information and Communication Technologies (ICTs). In this process, management precepts are renewed, fostering significant gains in efficiency, productivity, and sustainable use of natural resources and the environment. The growing supply of ICTs and the extension of connectivity in rural areas, with their transforming roles in productive practices and economic relations, bring about questions regarding their impacts. These technologies include precision positioning systems and large volume databases, electronic sensors of site-specific production and environmental conditions, repositories of relational data, statistical and crop forecasting software, methodologies and processes; web-based information services, among others. The assessment of impacts focused on ICTs for agriculture needs innovative approaches, due to the peculiarities of their applications, the different scales of their socioenvironmental scopes and, at the same time, the verification of effectiveness of institutional investments on research, development, and innovation (RD&I). Based on these premises, the objectives of this work are to present a ‘module of impact indicators for Information and Communication Technologies (Ambitec-TICs)’, and assess its application to six typical technology adoption cases resulting from agricultural RD&I projects. The results detail critical analyses of the contributions of the proposed module for the registration, interpretation, and communication of impacts, with recommendations for technology transfer and accountability in institutional Social Balance documentation

RenovaBio e o agrohidronegócio canavieiro em Goiás

This article approaches the expansion of sugarcane agribusiness in Goiás through the State’s action according to government policies such as the National Biofuels Policy – RenovaBio. To develop this research, we performed an analysis of the agribusiness concentration over the years and the RenovaBio legislation, as well as its effects on a possible new expansion. We concluded that the new policy for the state of sugarcane agribusiness, the RenovaBio, has the main purpose of encouraging the generation of biofuels in Brazil justified by the agreement established at the Paris Conference. In addition, by implementing the RenovaBio, the [ production of agrofuels (including ethanol) in Brazil tends to increase evidently leading to an enhanced productivity of sugarcane agribusiness through improved technology for the mechanization and genetics of sugarcane variety, which may intensify the expansion of sugarcane areas to the Southwest Micro-region of the state of Goiás in the remaining areas of Cerrado.O presente artigo é referente à expansão do agrohidronegócio canavieiro em Goiás por meio da atuação do Estado mediante políticas governamentais como a Política Nacional de Biocombustíveis – RenovaBio. Para o desenvolvimento desta pesquisa foi realizada uma análise da concentração do agrohidronegócio ao longo dos anos e uma análise da legislação do RenovaBio, bem como dos seus efeitos em uma possível nova expansão. Conclui-se que a nova política de Estado voltada ao agronegócio canavieiro, RenovaBio, tem como intuito principal o incentivo à geração de biocombustíveis no Brasil, justificado pelo acordo estabelecido na Conferência de Paris. Ainda, que com a efetivação do RenovaBio, a produção de agrocombustíveis (incluindo o etanol) no Brasil tende a aumentar e, evidentemente, acarretará o aumento da produtividade do agronegócio canavieiro a partir de melhor tecnologia na mecanização e na genética da variedade da cana, como também poderá intensificar a expansão das áreas dos canaviais para a Microrregião Sudoeste do estado de Goiás nas áreas remanescentes de Cerrado.

Water-energy-food nexus of sugarcane ethanol production in the state of Goiás, Brazil : an analysis with regional input-output matrix

Concerns about impacts of biomass growth for biofuel production emphasize the importance of planning energy crops expansion considering water, energy and land resources, as well as greenhouse gas emissions (GHG). This study analyses the impacts of first-generation sugarcane ethanol expansion in the Paranaíba basin (Goiás State), focusing on how future demand for ethanol could affect socio-economic, energy and environmental indicators in the region. An economic-ecological Input-Output (IO) framework was applied to develop a water-energy-food nexus (WEFN) analysis on ethanol production. Results show that sugarcane expansion would apparently cause little significant impacts on land and water availability in the Paranaíba basin, when analysing only the direct impacts of this expansion in the region. The WEFN analysis is a valuable tool on guiding the sustainable management of natural resources considering water, energy, land use and GHG emissions as goals to the same policy. In particular, the hybrid extended IO-WEFN framework is useful to design effective biofuel policies, collectively addressing impacts on environmental, social and economic spheres, in a local or broader context.O crescimento da produção de biocombustíveis enfatiza a importância do planejamento na expansão de culturas energéticas, considerando os recursos água, energia e terra, além de emissões de gases do efeito estufa (GEE). O presente estudo analisa os impactos da expansão do etanol de cana-de-açúcar na bacia do Paranaíba (estado de Goiás), visando entender se a demanda futura por etanol pode afetar indicadores socioeconômicos, ambientais e energéticos na região. Um modelo econômico-ecológico de Insumo-Produto (IP) foi aplicado para avaliar o nexo águaenergia-alimentos (NAEA) na produção de etanol. Resultados mostram que a expansão da cana-de-açúcar aparentemente causaria um impacto pouco significativo na disponibilidade de água e terras na bacia do Paranaíba, quando considerados apenas os efeitos diretos dessa expansão na região. A análise do NAEA é uma ferramenta valiosa para orientar a gestão sustentável de recursos naturais, considerando uso da água, terra e energia e emissões de GEE como metas de uma mesma política. Portanto, a abordagem híbrida NAEA-IP é útil no desenvolvimento de políticas para biocombustíveis, por coletivamente abordar impactos ambientais, sociais e econômicos, em um contexto local ou mais amplo

Are eucalyptus harvest residues a truly burden-free biomass source for bioenergy? A deeper look into biorefinery process design and Life Cycle Assessment

With the advent of RenovaBio, Brazil has cast a new light towards the life cycle of cellulosic ethanol. Once considered a resource intensive alternative pathway to achieve the same biofuel, second-generation approaches can now provide an economic advantage due to their potentially lower carbon footprint. The exploration of lignocellulosic harvest residues to this end can be beneficial, since productivity can be increased while not expanding cultivated areas. Eucalyptus forest residues are an example, result of logging and harvest procedures, being a low-cost and readily available biomass. Through an integrated biorefinery process simulation and a Life Cycle Assessment of the coproduction of ethanol and electricity, it was analyzed whether forestry burden is truly relevant when exploring this material, identifying technical and environmental bottlenecks. The biorefinery design implementation of anaerobic digestion and energy integration allowed a productivity boost of 20% for ethanol and 115% for electricity. With a 80 km collection radius, an annual production capacity of 30.3 ML could be achieved in the Campinas region. Enzymes were identified as the main environmental hotspot, but inconsistent published datasets and lack of transparency lead to inconclusive results regarding this input. While the burden associated with the lignocellulosic feedstock is relevant in most impact categories, the main bottleneck resides within the biorefinery itself, with inputs related to pretreatment and hydrolysis, boiler emissions and water consumption. Nevertheless, eucalyptus harvest residues cannot be considered a burden-free resource, since additional operations such as retrieval and transportation cannot be dismissed and often surpasses the impact potential of the aforementioned forestry activities.</p