BNDES RenovaBio is part of BNDES’s agenda aimed at stimulating good environmental, social and governance (ESG) practices. The program was conceived under the National Biofuels Policy (RenovaBio), under the responsibility of the Ministry of Mines and Energy, aiming to increase the insertion of renewable fuels in the Brazilian energy matrix. The program aims to contribute to increasing productivity and the dissemination of technological innovations, consequently providing consumers with lower prices and greater supply of even more sustainable biofuels. 

 

“The program was designed to complement RenovaBio’s policy, since it encourages the adoption of the best productive and environmental practices,” explains Petrônio Cançado, BNDES’s Director of Credit and Guarantees. “With greater energy-environmental efficiency and certification, Brazil’s biofuel production will be even greener, that is, with lower volume of CO2 emissions when compared to the energy offered.”

 

For Ricardo Barros, BNDES’s Director of Operations, BNDES RenovaBio is an innovative proposal for a financial instrument to support a public policy: “At the same time it fosters the development of the carbon credits market, the program promotes competitiveness in the fuel sector.”

 

The companies that will be able to apply for loans are the biofuel producers participating in the RenovaBio Policy, that have their head office and administration in Brazil and that hold Cnae classifications C1931-4 (ethanol manufacturing) or C1932-2 (biofuel manufacturing, except ethanol). Applications must be filed directly with BNDES by December 31st, 2022. The budget allocation of the program is R$ 1 billion.

 

The maximum value of each loan will be R$ 100 million per production unit, considering the limit per economic group of R$ 200 million. The total payment period will be up to 96 months, including a grace period of up to 24 months.

 

Rate reduction – Interest – formed by TLP or market cost benchmarks, plus a basic BNDES remuneration of 1.5% per year, and a credit risk rate – may be reduced by up to 0.4 percentage points if the client proves, after the grace period, to have reached the CO2 emissions reduction goals defined by the program.

 

To evaluate the achievement of the goals, BNDES will use the Decarbonization Certificate Issuance Factor (CBIOs), an indicator calculated by the National Agency for Petroleum, Natural Gas and Biofuels (ANP). The Decarbonization Certificate (CBIO) is an environmental asset issued, through banks or other financial institutions, by the certified biofuel producer or importer. It is also a financial asset traded on the market by fuel producers and distributors and other investors. One CBIO unit corresponds to one ton of carbon that is no longer emitted into the environment.

 

About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. BNDES’s actions focus on the socioenvironmental and economic impact in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In crisis situations, BNDES acts in an anticyclical manner and assists in formulating solutions for resuming economic growth.