The Ministry of Mines and Energy (MME) opened a public consultation to receive contributions for the revision of MME Ordinance No. 419/2019, which regulates the issuance, bookkeeping, registration, negotiation and retirement of the Decarbonization Credit (CBIO) of the National Biofuels Policy (RenovaBio). The consultation is open until April 8.

The review comes at a time of consolidation of RenovaBio, which currently has more than 300 certified biofuel producing units and had more than 29 million CBIOs traded in 2021.

The main objective of the revision of the ordinance is to insert a device to discipline the improvement of negotiations, in order to enable a future buying and selling mechanism. This protects the parties involved (issuers and buyers of CBIOs) from sudden fluctuations in asset prices.

The revision of Ordinance 419 brings other improvements, such as the formalization of the requirement of prior registration of the bookkeeper in the Brazilian Securities and Exchange Commission (CVM) and the requirement that a new registrar prove interoperability with the current one, allowing adaptation to the eventual entry of new registrars. In addition, it also provides for the inclusion of a provision on the provision of individualised information, to the MME and the National Petroleum Agency (ANP), by the registrars, necessary for monitoring and eventual adjustments of the CBIOs market.