CNPE Approves Increase of the Mandatory Percentage of Biodiesel to 10%

On November 9, 2017, during the 2nd extraordinary meeting held in 2017, the National Energy Policy Council ("CNPE") approved the percentage increase of the mandatory biodiesel addition to traditional diesel from 8% to 10%, effective as of March 1, 2018.

As anticipated in our legal update from April 8, 2016, Law No. 13,263/2016 provided that the percentage of the mandatory addition of biodiesel to traditional diesel would gradually increase, as follows: (i) from 7% to 8% until March 2017; (ii) from 8% to 9% until March 2018; and (iii) from 9% to 10% until March 2019.

However, instead of increasing from 8%  to 9% in March 2018, the CNPE decided to raise the percentage directly to 10% in order to expedite in one year the deadline established by Law No. 13,263/2016.

Such a measure meets the demands of the market and aims to encourage new investments in the sector.