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The Government has also taken steps to promote access for family farmers to the biodiesel market, under the Social Fuel Seal initiative (Chapter 4.4.3).

The following priorities have been established under the Brasil Maior: to build and strengthen competencies in the national economy; to enhance productivity and technology density within value chains; to expand domestic and external markets for Brazilian companies; and to ensure socially inclusive and environmentally sustainable growth. 

Under the Plano Brasil Maior, the Government adopted significant fiscal incentives to help the domestic auto industry recover from the effects of the global crisis. Between December 2011 and December 2012, tax breaks were offered for companies producing vehicles with more than 65% of regional content. As From 1 January 2013, the automotive sector's fiscal regime was superseded by the INOVAR-AUTO programme. Companies eligible for the programme may benefit from an Industrial Products Tax reduction of up to 30%. In order to qualify for the programme, vehicle manufacturers must comply with energy -efficiency requirements and with certain domestic manufacturing or investment conditions.

The INOVAR-AUTO was created with the purpose of supporting technological development, innovation, safety, environmental protection, energy efficiency, and the quality of vehicles and automotive parts. INOVAR-AUTO is set to expire on 31 December 2017; its beneficiaries are companies that produce or plan to produce in Brazil products classified under headings 87.01 to 87.06 of the Tax on Industrial Products-TIPI schedule, approved by Presidential Decree No. 7,819 of 3 October 2012, or commercialize them. To benefit from INOVAR-AUTO a joint permit by the MDIC and the MCIT is required. This permit is contingent upon meeting energy efficiency standards for the vehicles produced or commercialized and the commitment to making R&D and infrastructure investments in Brazil, as well as participating in a nationwide vehicle labelling programme, except for diesel or semi-diesel vehicles. Permits have a 12-month validity and arerenewable for 12-month periods.

Brazil is nearly self-sufficient in primary energy production; in 2011, it produced 256.8 tonnes of oil equivalent (toe), which accounted for 94.3% of its energy needs. The Brazilian energy matrix remains one of the greenest in the world, but the participation of renewable sources in total energy production decreased during the review period.

Brazil has one of the world's cleanest energy mixes. 44.1% of primary energy sources are renewable, compared to a world average of 13.3% and 8% in OECD countries. It is forecast that renewable sources will continue to account for a large share of supply, mostly due the use of hydropower and bioenergy , includingbiofuels. Only 30% of Brazil’s hydroelectric potential has been exploited. The potential for increased production of this renewable and affordable energy source is an integral part of the country's long-term strategy for the sector. Widespread access to affordable energy is crucial to achieving the goals ofsustainable development, promoting social inclusion and poverty reduction; promoting national integration and the reduction of green house gas emissions and contributing to improve the economy's competitiveness. Brazil is, therefore, investing significant amounts in research and in new technologies to improve the generation and distribution of energy.

Brazil is nearly self-sufficient in primary energy production; although Brazil's energy matrix remains one of the greenest in the world, the participation of renewable sources in total energy production decreased during the review period.

Brazil is nearly self-sufficient in primary energy production; petroleum production has been expanding steadily, posting a 20.5% increase from 2007 to 2011.

The Ministry of Mines and Energy (MME) defines the general policy for the energy sector and presides over the National Energy Policy Council (CNPE), which formulates policies and regulations pertaining to hydrocarbons, biofuels , and electricity. Policy for the ethanol and sugar industry is also determined by the Inter-Ministerial Council for Sugar and Alcohol (CIMA).  There are two autonomous regulatory agencies linked to the MME: the National Agency for Petroleum, Natural Gas and Biofuels (ANP), which regulates hydrocarbons and biofuels (except for state-level distribution of natural gas); and the National Agency for Electrical Energy (ANEEL), responsible for regulating and overseeing the electricity sector

This regime is also aimed at achieving greater state control over oil production and a more equal distribution of its proceeds among Brazilians. To this end, government revenues arising from production-sharing contracts are to be channelled to a social fund to finance education, poverty reduction, and environmental initiatives.