Modern bioenergy is expected to play an increasingly vital role in the energy transition. It accounts for a sizable portion of total final energy consumption in the coming years and will need to contribute 12% by 2030 and 15% by 2050 in the 1.5°C Scenario. However, realising bioenergy’s full potential requires a comprehensive approach to address key barriers to wider bioenergy deployment such as policy uncertainty, technology readiness, cost and financing issues, limited market access, supply chain complexities and sustainability risks.
Brazil’s experience, particularly with bioethanol, exemplifies a compelling model for sustainable decarbonisation. It offers a low-cost and competitive pathway, significantly contributing to global energy transitions. By fostering market competition through a conducive regulatory environment and strategically employing tax policies to influence fuel consumption, Brazil actively supports the shift towards biofuels.
The Brazilian experience highlights the crucial need for implementing strategies and policies that enhance sustainability and address investment barriers. This includes creating an appropriate institutional framework, establishing consistent long-term objectives through effective policies, encouraging constructive discussions with private stakeholders, pursuing international collaboration, and advancing innovation to facilitate the development of biofuels in the energy mix. This report “Brazil’s biofuel industry: Lessons, challenges and opportunities” published by IRENA focuses on the Brazilian experience and perspectives on ethanol, biodiesel and some advanced biofuels.
Access the report here