Publication of the Delinquent List under Renovabio
The Brazilian Petroleum and Gas Institute (IBP), the largest entity in the sector, regrets the recent decisions by the Federal Court that allowed some companies not to have their names published on the list of fuel distributors failing to meet their Decarbonization Credit (CBIO) acquisition targets under the Renovabio program. The list was released this Monday (July 21) by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and represents an achievement for market integrity and the advancement of the country’s decarbonization agenda.
It is important to highlight that companies failing to meet Renovabio targets gain an unfair competitive advantage over those that comply correctly with their obligations.
Transparency is a key element for integrity in commercial transactions. Therefore, companies need access to information to identify bad-faith actors using non-compliance as a business strategy. IBP emphasizes that publishing all delinquent companies on the list is essential to provide legal certainty to fuel producers and distributors, allowing them to refuse to trade with non-compliant operators without risk of legal action.
RenovaBio is the national biofuels policy that sets annual emission reduction targets for distributors, ensuring a predictable expansion of biofuel supply. Compliance with these targets is achieved through the purchase and “retirement” of CBIOs, each representing the avoidance of one ton of carbon emissions.
Non-compliance with Renovabio targets is not an isolated issue. In 2024, only 77% of the Renovabio target was met, resulting in direct losses for competitors and creating market imbalance, constituting unfair competition. IBP data, based on ANP information, indicate that 68 companies have administrative proceedings for failing to comply with CBIO purchase requirements. Fines imposed by ANP amount to BRL 505 million, but only BRL 17 million have been paid or settled in installments, and BRL 85 million are subject to court injunctions.
