3.6 Government Policies Supporting Bioeconomy Vision and Objectives
Brazil has been a global pioneer in the realm of biofuel policies, with a history marked by ambitious initiatives aimed at fostering sustainable energy production. Notably, the Proálcool program in the 1970s and the National Program of Production and Use of Biodiesel (PNPB) in 2004 stand out as significant milestones. However, while these programs have driven energy and agricultural benefits, their impact on environmental and social inclusion has been debated, with some considering them contradictory in this regard. The Proálcool initiative emerged against a backdrop of efforts to lessen Brazil’s reliance on fossil fuels. It commenced in 1975, aiming to bolster national energy security by promoting the sugar-cane industry and encouraging vehicles powered by alcohol. However, fluctuations in sugar prices and reductions in subsidies affected its competitiveness against gasoline. Subsequently, the market shifted toward flex-fuel vehicles, and between 2003 and 2008, ethanol experienced a resurgence due to lower prices and flexible fuel technologies.Following the Proálcool experience, the PNPB was instituted in 2005. Unlike ethanol, biodiesel production received subsidies and tax exemptions, focusing on replacing diesel with biodiesel and supporting family farmers. The program mandated a gradual increase in biodiesel blending targets, reaching 15% by 2023, while raising concerns about the traceability of soy, a primary biodiesel feedstock. In more recent times, the National Biofuels Policy, RenovaBio, emerged to unify and address previous shortcomings, especially in achieving environmental targets. Launched in 2016 as part of Brazil’s commitment to the Paris Agreement, RenovaBio aimed to elevate biofuels’ share in the national energy matrix and reduce greenhouse gas emissions. It operates through a market-based approach without public subsidies, introducing mechanisms such as carbon-reduction credits (CBIOs) to incentivize biofuel production and create a new biofuel trading market. Under RenovaBio, annual emission reduction targets for the fuel matrix were set, translating into mandatory targets for fuel distributors. These targets are linked to the certification of biofuel production, where each producer receives grades based on energy efficiency and emission reductions. CBIOs are then issued by certified biofuel producers and traded, becoming an essential component incentivizing biofuel production and contributing to GHG emissions reduction. RenovaBio’s operational model comprises biofuel production certification, the issuance of CBIOs, and annual emission reduction targets. Its market-driven scheme has attracted over 200 producers, with CBIOs traded on the Stock Exchange, ensuring its credibility as a pricing element for carbon reduction. Fuel distributors acquire CBIOs to meet targets, ensuring a sustainable and market-oriented approach to bioenergy production. RenovaBio’s intricate structure illustrates Brazil’s commitment to promoting biofuels while aligning with global environmental goals. It highlights a shift towards market mechanisms driving sustainable energy production without overreliance on public subsidies (Grangeia & Santos, 2022).
Agribusiness Innovation Policy
The Agribusiness Innovation Policy refers to a strategic framework developed by governments or relevant authorities to stimulate and support innovation within the agricultural sector. It encompasses a range of initiatives, regulations, incentives, and investments aimed at fostering innovation, technological advancements, and sustainable practices in agriculture (Søndergaard, 2023). Encouraging and funding scientific research, innovation, and technology development pertinent to agriculture. This may involve collaborations between research institutions, universities, and private sector entities to drive innovation. Facilitating the adoption and implementation of cutting-edge technologies, such as precision agriculture, biotechnology, IoT (Internet of Things), and AI (Artificial Intelligence), to enhance productivity and sustainability. Providing support, funding, and a conducive ecosystem for agricultural entrepreneurs, startups, and small businesses focused on innovative agricultural solutions. Promoting and incentivizing sustainable agricultural practices that minimize environmental impact, conserve natural resources, and reduce carbon footprint. Creating pathways for innovative agricultural products and technologies to enter markets, fostering commercialization, and ensuring market access for new innovations. Developing policies and regulatory frameworks that encourage innovation, protect intellectual property rights, and ensure safety standards while fostering innovation in agriculture.
Collaborations between government agencies, research institutions, industry players, and academia to drive innovation and bridge the gap between research and implementation. Offering grants, subsidies, tax incentives, and financial support mechanisms to incentivize R&D and innovation in agriculture. Facilitating knowledge exchange, training programs, and capacity-building initiatives to disseminate new technologies and practices among farmers, researchers, and stakeholders. Streamlining regulations, reducing bureaucratic hurdles, and providing a conducive regulatory environment to enable swift adoption of innovative agricultural practices and technologies. Innovation policies drive the development and adoption of advanced technologies, leading to increased agricultural productivity and efficiency. Encouraging sustainable practices reduces environmental degradation, promotes resource conservation, and addresses challenges such as climate change and soil degradation. Innovation in agriculture fosters economic growth, creates job opportunities, stimulates entrepreneurship, and enhances global competitiveness.