Lula’s Green Fuel Law Favors Farmers Over Oil Giant Petrobras
- Gasoline consumption to fall on higher bio blend mandate
- Bill will also boost demand for corn ethanol and biodiesel
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New legislation in Brazil is set to support farmers by pushing additional demand toward biofuels — and away from the fossil fuels produced by state-controlled oil giant Petroleo Brasileiro SA.
At its final stages in Congress, the “Fuel of The Future” bill from President Luiz Inacio Lula da Silva’s government creates broader mandates for biofuels, reinforcing Brazil’s strategy of relying on its bountiful crops to address the energy transition. It’s also a strong reminder for Petrobras of increasing pressure to invest in low-carbon alternatives.