In the 2022/2023 harvest season, Companhia Mineira de Açúcar e Álcool (CMAA) expanded the area eligible for the Renovabio program by 20,233 hectares, with the certification of its Canápolis unit. With this achievement, increased ethanol production, and the appreciation of Carbon Credits (Cbio) in the market, the company increased its revenue from carbon credit sales for the harvest compared to the accumulated amount for the 2021/2022 harvest.
Established by Law No. 13,576/2017, with additional regulations through Decree No. 9,888/2019 and Directive No. 419 of November 20, 2019, issued by the Ministry of Mines and Energy, Renovabio enables the commitment assumed by Brazil at the 2015 United Nations Conference on Climate Change (COP 21). It establishes annual decarbonization targets for the fuels sector, with the aim of increasing the share of bioenergy in the Brazilian energy matrix to approximately 18% by 2030.
So, for each ton of CO2 that is no longer emitted due to the replacement of fossil fuel with biofuel, a farmer duly certified by the ANP under Renovabio receives a Cbio - a security tradable on the stock exchange. On the other hand, distributors have in Cbios a mandatory mechanism to achieve their decarbonization goals by acquiring these credits. While distributors are the main investors in Cbios, the voluntary market is also beginning to emerge as a potential audience, both in the investment market, especially due to their appreciation, and also among companies seeking ways to neutralize their emissions.
