IBP Statement – Biodiesel Imports
The undersigned organizations support the regulated opening of biodiesel imports as a measure consistent with Brazil’s international commitments and the Future Fuel agenda, as it enhances predictability, competition, efficiency, and security of supply. The proposal presented under Public Consultation No. 203/2025 of the Ministry of Mines and Energy, which effectively prohibits biodiesel imports, runs counter to the principles of free competition, economic freedom, and consumer protection, while also departing from the objectives of Law No. 9,478/1997 and Economic Complementation Agreement No. 18, a cornerstone of intra-regional trade within Mercosur.
The organizations recognize the success of Brazil’s National Biodiesel Production Program, which has fostered a robust industry closely integrated with the country’s energy transition efforts. The installed production capacity fully meets domestic demand, has the potential to accommodate future increases in blending mandates, and has enabled Brazil to become a biodiesel exporter. Precisely because of this level of maturity, there is no technical or economic justification for restricting, through subordinate regulation, access to additional sources of supply that could enhance market contestability and contribute to greater competitive discipline in the pricing of B diesel.
From both competition and supply security perspectives, opening the market would expand sourcing alternatives for compliance with the blending mandate, mitigating risks associated with feedstock seasonality, plant shutdowns, climate-related events, and logistical constraints. By broadening supply options, the volatility of compliance costs associated with the blending mandate can be reduced.
Furthermore, market opening can and should be implemented without any relaxation of product specifications. ANP regulations establish stringent quality and control requirements that apply equally to domestic and imported biodiesel. The key challenge is ensuring compliance with these requirements, fully preserving Brazil’s technical standards through clear inspection and enforcement mechanisms.
From a legal and regulatory standpoint, restricting imports through subordinate regulation is inconsistent with the new commercialization model based on free negotiation established by CNPE Resolution No. 14/2020 and ANP Resolution No. 857/2021 (*), as it prevents fuel distributors from fully exercising their freedom to negotiate by excluding international suppliers. Conversely, granting access to the international market is fully compatible with this framework, fostering deeper competition through supplier diversification.
In light of the above, the organizations advocate for a transparent and regulated framework that reconciles public policy objectives with greater market efficiency and allows at least 20% of total volume requirements to be met through imports. Such a framework would enhance competition, strengthen energy security, and protect consumers, while preserving 80% of the market for producers holding the Social Biofuel Seal, as already established by law.
(*) Note:
CNPE Resolution No. 14/2020 – Establishes the guidelines for biodiesel commercialization throughout the national territory.
ANP Resolution No. 857/2021 – Establishes the rules governing biodiesel commercialization for compliance with the mandatory biodiesel blending requirement applicable to diesel fuel sold to end consumers.
