COP 28: biofuels are the best short-term solution for an efficient energy transition

Together with delegations from the governments of Paraguay and Brazil, I took the biofuels banner to high-level meetings with authorities in Saudi Arabia and the United Arab Emirates, on an agenda prior to the 28th Conference of the Parties (COP28) of the United Nations on Change Climate Change (UNFCCC), which takes place in Dubai until December 12, 2023.

There are two fronts: opening new markets for our products abroad and bringing green financing resources to our investments in South America. The development of the role of biofuels in the decarbonization process is totally related to the mobilization of governments, international organizations and many sectors that need to accelerate the energy transition in their businesses.

During this period, I had meetings with the Minister of Investment of Saudi Arabia, Eng. Khalid bin Abdulaziz Al-Falih, accompanied by the Minister of Industry and Commerce of Paraguay, Javier Gimenez Garcia de Zúñiga, and with the Saudi Minister of Commerce, Dr. Majid Alkassabi. In Dubai, he met with the Minister of State for Commerce of the United Arab Emirates, Dr. Thani Al Zeyoudi. Alongside other Brazilian companies and the Brazilian Export and Investment Promotion Agency (ApexBrasil), we participated in the round table between Brazil and Saudi Arabia.

There was no shortage of time to defend the use of biofuels for Formula 1 races and other access categories, together with the president of the International Automobile Federation (FIA), Mohammed bin Sulayem. He stated that he sees certified biofuels positively and sees their use in the future, not only in vehicles, but in GP logistics, as very promising.

Biodiesel, ready and effective solution

Much has been said about electric vehicles, hydrogen and other technological routes with all their high investment impact for the transition and, for a long time, biodiesel has been ready to fulfill its role in the decarbonization process. There is no doubt that biofuels are currently the best cost-benefit solution for countries and companies to meet their decarbonization goals in the short term.

Sustainable finance plays an important role in channeling resources towards social, environmental and governance development projects (as part of the ESG concept). They guarantee compliance with decarbonization goals and, consequently, mitigate the risks of economic disruptions, such as environmental catastrophes and losses in agricultural production resulting from global warming.

The expectation is that Brazil will play a leading role in clean energy during COP28 to launch a macro and transversal energy transition program, with the aim of reinforcing the country’s position in this new moment in global energy, transforming the event into a platform attracting investment to this strategic sector of the country.

Regional leadership

Another challenge is the promotion of Public Policies in South American countries to encourage the use of biofuels for the energy transition, considering the total exemption from taxation of renewable energy produced in the region and exported. We need to create synergies and align regional regulatory strategies to increase the use of biofuels in the region, with emphasis on investments in SAF (aviation biokerosone).

Entities representing the biofuels sector in Argentina, Brazil, Colombia, Paraguay and Uruguay have already expressed a firm conviction that it is essential that all governments comprehensively promote the energy transition strategy for the development of the sector, both for vehicular transport , as well as air, river and maritime transport. APROBIO also formally joined the Pan-American Liquid Biofuels Coalition, an important forum to promote the sustainable production and consumption of biofuels.