Project encourages family farming in the production of biofuels

A project being analyzed in the Senate establishes incentives for family farming to participate in the biofuel production chain, such as ethanol and biodiesel. O PL 5,927/2023 it was presented by senator Jader Barbalho (MDB-PA) in December.

The proposal changes the National Biofuels Policy (RenovaBio), established in Law 13,576, of 2017. The text includes among the objectives of the legislation the encouragement and support for family farming aimed at the production of raw materials for biofuels.

The text also provides for a minimum percentage of participation in the commercialization of biofuels for those who have the Social Biofuel Seal, granted to biodiesel producers who promote the productive inclusion of family farmers. The seal is awarded by the Ministry of Agriculture and guarantees tax benefits to producers.

According to the project, farmers who supply raw materials to the sector's production chains must be guaranteed incentives and technical assistance to produce.

“Encouraging and promoting the participation of family farming in biofuel production can contribute to increasing income generation and employment in the countryside, as well as keeping people in the countryside, providing greater dynamism and increasing the socioeconomic development of each region”states Jader Barbalho in justifying the proposal.

According to the author, the project contributes to the “increasing Brazil’s energy matrix” and has social and economic importance.

“As there are new biofuels, including green diesel, biokerosene (BioQAV), biogas and hydrogen, obtained from other raw materials from rural areas, this type of incentive becomes even more relevant”says the senator.

The text is being analyzed by the Agriculture and Agrarian Reform Committee, but it does not yet have a designated rapporteur. The PL must also be voted on in the Environment Committee and the Infrastructure Services Committee.

With information from Senate Agency.