BUILDING RESILIENCE IN BRAZIL’S BIOFUEL MARKET

The document discusses Brazil's strategy to meet its Nationally Determined Contribution (NDC) goals by expanding its biofuel market. It highlights a study conducted in Rio de Janeiro showing that the increase in flex-car adoption—which reached 94% of new car registrations in 2008—reduces retail prices for both ethanol and gasoline. The study finds that a 10-percentage point increase in flex-car market share lowered ethanol prices by approximately eight cents of Brazilian reais and reduced gasoline margins by two cents, benefiting consumers who do not own flex-fuel vehicles.

• Brazil's energy mix includes 40% renewable energy, which is three times the global average, positioning the country as a low-carbon economy.
• Flex-fuel vehicle adoption in Brazil was high, with 94% of all new cars registered in 2008 being flex-cars capable of running on any mix of gasoline or ethanol.
• A study of the retail fuel market in Rio de Janeiro found that a 10-percentage point increase in the market share of flex cars reduced ethanol prices by about eight cents of Brazilian reais and reduced gasoline margins by two cents of Brazilian reais.
• The increased substitution between ethanol and gasoline driven by flex-car penetration resulted in estimated consumer savings of up to 70 million Brazilian reais (approximately 36 million dollars) at the pumps in Rio de Janeiro in 2007.
• Between 2005 and 2012, the sugarcane production area in Brazil grew by 70%, with forecasts suggesting a further increase of up to 37% over the following ten years.

APA

Assunção, J., Pessoa, J. P., & Rezende, L. (2017). BUILDING RESILIENCE IN BRAZIL’S BIOFUEL MARKET. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2017/08/CPI_Building_Resilience_In_Brazils_Biofuel_Market.pdf

Chicago

Assunção, Juliano, João Paulo Pessoa, and Leonardo Rezende. BUILDING RESILIENCE IN BRAZIL’S BIOFUEL MARKET. Climate Policy Initiative, 2017. https://www.climatepolicyinitiative.org/wp-content/uploads/2017/08/CPI_Building_Resilience_In_Brazils_Biofuel_Market.pdf.

Wikipedia

{{cite report |last1=Assunção |first1=Juliano |last2=Pessoa |first2=João Paulo |last3=Rezende |first3=Leonardo |title=BUILDING RESILIENCE IN BRAZIL’S BIOFUEL MARKET |publisher=Climate Policy Initiative |date=August 2017 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2017/08/CPI_Building_Resilience_In_Brazils_Biofuel_Market.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{assuno2017building, author = {Assunção, Juliano and Pessoa, João Paulo and Rezende, Leonardo}, title = {{BUILDING RESILIENCE IN BRAZIL’S BIOFUEL MARKET}}, institution = {Climate Policy Initiative}, year = {2017}, month = aug, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2017/08/CPI_Building_Resilience_In_Brazils_Biofuel_Market.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }