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4.72. Brazil has also launched the National Energy Plan 2050, which integrated planning of energy resources by the Government as prepared by the Energy Research Company (EPE) in close collaboration with the Ministry of Mines and Energy (MME). The plan lays the basis for the formulation of a strategy to expand the supply of economic and sustainable energy with a view to meeting the evolution of demand, according to a long-term perspective, and by covering electric energy, as well as other energy sources, notably oil, natural gas, and biomass.

4.73. Under the Federal Constitution, Brazil's hydropower sources and mineral resources (including oil and gas), whether in the subsoil, the continental shelf, or in the exclusive economic zone, are the exclusive property of the Union. (...) The Ministry of Mines and Energy (MME) implements the general policy for the sector and chairs the National Energy Policy Council (CNPE), which proposes policies and regulations pertaining to hydrocarbons, biofuels, and electricity to the President. Two autonomous regulatory agencies are 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. (...) The Energy Research Company (EPE) supports planning, inter alia, in areas such as electricity, oil, natural gas and its derivatives, coal, renewable energy sources, and energy efficiency.

4.77. The production-sharing regime is aimed at lowering the exploration risk, maximizing the government take from oil production, and achieving a more equal distribution of its proceeds among Brazilians; revenue from production sharing contracts is to finance (...) environmental initiatives. (...)

4.81. Brazil was the eighth-largest producer and the seventh-largest consumer of crude oil, all other petroleum liquids, and biofuels consumer in the world in 2019, consuming 3.14 million barrels/day (b/d). (...)

4.83. (...) In 2022, a minimum blend of 10% of biodiesel is required, according to National Energy Policy Council (CNPE) Resolution No. 25/2021. This share should reach 15% in 2023, according to CNPE Resolution No. 16/2018. (...)

4.86. At the end of 2017, Brazil instituted the National Biofuels Policy (RenovaBio), with the objective to contribute to the decarbonization of the Brazilian transport matrix in line with the United Nations Framework Convention on Climate Change 21st Conference of the Parties (COP21) commitments. To achieve this, the programme takes into account the relationship between energy efficiency and the reduction of greenhouse gas emissions (GHG), and it draws on three main instruments: (i) annual carbon intensity reduction targets (CO2/MJ) for a minimum period of 10 years; (ii) certification of biofuels by efficiency in reducing GHG emissions; and (iii) decarbonization Credits (CBio). From these instruments, the environmental costs of using fossil fuels are converted into income for biofuel producers, offering efficiency incentives for their sustainable growth. In 2021, it avoided the emission of 24.4 million tonnes of GHG due to the commercialization of 24.4 million CBios by distributors of fossil fuel, which met about 98% of the 2021 target.

4.92. In 2019, Brazil's ethanol exports averaged approximately 33,000 barrels/day. The United States was the main destination for Brazil's ethanol exports (13,000 barrels/day), mainly through California because of the fuel's favourable treatment compared with domestic corn ethanol under California's Low Carbon Fuel Standard (LCFS), as Brazil's sugarcane ethanol emits less carbon dioxide than corn-based ethanol.

4.94. During the review period, Brazil's biodiesel output grew steadily to 6.76 million m3 (2021), compared to a rise from 2.7 million m3 (2012) to 3.9 million m3 (2015), inter alia, supported by the increase of the biodiesel use mandate (see below). Brazil is the world's third largest producer of biodiesel after the United States and Indonesia. As of 2021, Brazil had 55 plants authorized to produce biodiesel and their capacity represented 35,679 million m3/day.

4.95. The customs tariff on biodiesel (HS 3826) is 12.6%. However, external trade of biodiesel is very low: imports reached USD 119,605 in 2021, USD 23,292 in 2020, and USD 15,751 in 2019, while biodiesel exports reached USD 9 million in 2021, USD 3 million in 2020, and USD 565,661 in 2019.

4.96. The 2004 National Biodiesel Production Programme (PNPB) remains in place. Its aim is to promote domestic biodiesel production, reduce petroleum import dependency, lower pollutant emissions and health-related costs, generate jobs and income, and alleviate regional economic disparities by passing on benefits to family farmers. It is implemented through blending requirements. (...) On 1 January 2022, a new biodiesel commercialization model was implemented, replacing the public auctions for direct negotiations among buyers and biodiesel producers, as defined by National Council for Energy Policy (CNPE) Resolution No. 14/2020, where 80% of the biodiesel market is reserved to sugarcane plants that have the Social Fuels Seal.