Doubts loom over timing of Brazil’s B16 biodiesel mandate as deadline nears

Less than a month before Brazil’s latest increase in mandatory blending of biodiesel into diesel is due to come in, biofuel producers and distributors view the likelihood of hitting the deadline with skepticism. Under the Fuel of the Future law, the biodiesel blend is scheduled to increase by one percentage point each March until it reaches 20% in 2030. However, this year’s increase from the current 15% to 16% (B16) still depends on the completion of feasibility tests “in order to guarantee safety and adequate performance.” The other major step still required is final approval from the National Energy Policy Council (CNPE), which will regulate how the approved blend levels are implemented. Given this, diesel and biodiesel market participants suggest that the March deadline is unlikely to be met. “The chances of a blend increase in March are very remote, and the expectation will be to see this at the beginning of the second half of the year, just as it was in 2025,” a source from a ...