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Brazil lower house passes bill aimed at boosting biofuels use

Brazil lower house passes bill aimed at boosting biofuels use
From Reuters - November 28, 2017

BRASILIA (Reuters) - Brazils lower house of Congress approved on Tuesday a bill to set up a program to boost the use of biofuels, a move that could sharply change the way fuel distributors operate in the country.

The program, called RenovaBio, will give fuel distributors in Brazil targets to cut carbon emissions, which they will meet by selling increasing volumes of ethanol and biodiesel over the coming years.

The bill has yet to be approved by the Senate before it could be signed into law by President Michel Temer.

RenovaBio could be a lifeline to Brazilian ethanol producers struggling in recent years to compete with gasoline. It could also bolster sugar prices by encouraging mills to produce more ethanol and less sweetener.

Sugar and ethanol consultancy Datagro estimates the new policy could result in domestic demand for as much as 40 billion liters of ethanol by 2030, up sharply from just over 26 billion liters in 2016.

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