RenovaBio sets a long-term framework that introduces market-based mechanisms to recognize the emissions reduction potential of each biofuel, assessed individually by production facility. The program operates primarily through two key instruments:
Ten-Year Targets

RenovaBio sets national emissions reduction targets for the fuel matrix over a 10-year period. These long-term targets provide essential predictability regarding the projected demand for both fossil and renewable fuels, enabling private sector stakeholders to plan and evaluate investments with greater confidence and reduced uncertainty.

The national targets are then translated into mandatory annual targets for individual fuel distributors. These obligations are allocated proportionally, based on each distributor’s share of the fossil fuel market.

1) Life Cycle Assessment (LCA)
Greenhouse gas emissions are evaluated using a Life Cycle Assessment (LCA) approach, following the parameters established by ANP Resolution No. 758/2018.

Each production unit must undergo certification, which is conducted by accredited private auditors. The assessment is based on data processed through RenovaCalc, a standardized tool that calculates the Environmental Energy Efficiency Score (NEEA in Portuguese) for each facility. This score reflects the unit’s efficiency in reducing CO₂equivalent (CO₂eq) emissions over its production life cycle.

Producers with lower life cycle emissions receive higher NEEA scores, indicating a greater contribution to greenhouse gas mitigation when compared to their fossil fuel counterparts. The score quantifies this contribution in terms of avoided CO₂-eq emissions per unit of biofuel produced.

2) The score determined through the certification process serves as the basis for issuing Decarbonization Credits (CBIOs) in a regulated market. Each credit represents the reduction of one metric ton of CO₂-equivalent (CO₂eq) emissions achieved through the use of renewable fuels in place of fossil fuels. These credits are tradable and can be bought or sold by any market participant – individuals or legal entities. Fuel distributors are required to meet their annual emissions reduction targets by purchasing CBIOs from certified renewable energy producers.

RenovaBio is managed through a coordinated effort among several government bodies. The RenovaBio Committee and the National Energy Policy Council (CNPE in Portuguese) are responsible for setting long-term national decarbonization targets and establishing overall policy guidelines for the fuel matrix. The National Agency of Petroleum, Natural Gas, and Biofuels (ANP in Portuguese) oversees the program’s technical and operational aspects. Its responsibilities include accrediting certifying firms, validating biofuel invoices that back CBio issuance, allocating the national emissions reduction targets among individual fuel distributors, and monitoring annual compliance. The ANP also enforces penalties on distributors that fail to meet their obligations. The Ministry of Mines and Energy (MME) is in charge of regulating the CBio market.

Each year, national emissions reduction targets are broken down into mandatory individual targets for all fuel distributors. The allocation is based on each distributor’s share of the fossil fuel market in the previous year, ensuring a fair and proportional distribution of responsibilities. According to Resolution No. 791/2019, the final annual target for each fuel distributor must be published by March 31 of the year in which it takes effect.

RenovaBio’s national emissions reduction targets for the fuel matrix are defined by the National Energy Policy Council (CNPE in Portuguese) and set for a 10-year period.

A CBio (Decarbonization Credit) represents the reduction of one metric ton of CO₂-equivalent (CO₂eq) emissions that would have otherwise been released into the atmosphere. These credits are issued by biofuel producers accredited by the National Agency of Petroleum, Natural Gas, and Biofuels (ANP in Portuguese), following the commercialization of certified biofuel production, in accordance with Resolution No. 802/2019.

CBios are traded on the B3 stock exchange and can be purchased by any individual or legal entity interested in offsetting their carbon emissions.

Biofuel producers must hire an inspection firm accredited by the National Agency of Petroleum, Natural Gas and Biofuels (ANP in Portuguese) to audit the carbon footprint of their production process. This audit includes a life cycle analysis of the biofuel, which results in an energy-environmental efficiency rating (NEEA in Portuguese) for each production unit. The NEEA is then submitted to the ANP for validation. As part of the transparency process, the ANP publishes the report for a 30-day public consultation period, during which any concerns or objections can be raised. Once the NEEA is validated, producers become eligible to issue CBios  (Decarbonization Credits) based on their physical biofuel sales. Each CBio must be supported by an invoice and is registered with authorized financial institutions, making it available for trading on the stock exchange. Fuel distributors are required to purchase CBios to meet their decarbonization targets. Buyers “retire” the CBios through the ANP system to officially offset their CO₂ emissions.

CBios (Decarbonization Credits) are traded on organized markets and registered with authorized financial institutions, which are responsible for maintaining records of all transactions during the time the securities are listed. Any individual or legal entity can purchase CBios by contacting a licensed broker that offers the credits. Once the transaction is completed, it is recorded on the exchange. Buyers can either sell the CBios later on the secondary market (acting as investors or speculators) or retire them, in which case the credits are used to offset their carbon emissions.

Transparency and credibility are key to RenovaBio. Thus, the entire life cycle analysis process to determine the carbon footprint of biofuels is audited by inspection companies, validated by the National Agency of Petroleum, Natural Gas and Biofuels (ANP in Portuguese), and made available for public review for 30 days.

To participate in the process, all inspection firms have their capabilities reviewed and verified by the ANP. After being recognized by the agency, these companies become eligible to be hired by producers to audit information related to their production process. Information such as the origin of the raw material, possession of the Rural Environmental Registry (CAR), and the inputs used during the production process are verified. The final report is submitted to the ANP and made available for public review for 30 days, in addition to the agency’s own evaluation. After this period, if there are no questions, the producer is approved for participation in RenovaBio.