BRASÍLIA — On Thursday (1/12), the National Bank for Economic and Social Development (BNDES) approved new rules for the financing program for biofuel producers, BNDES RenovaBio. The change includes a reduction in interest rates and carbon emission reduction targets according to each customer's current stage of energy-environmental efficiency.

According to the development institution, the goal is to expand the company's support to the program.

With a budget of R$ 2 billion, the program will provide discounts of up to 0.4% in interest rates for customers who prove improvements in their environmental indicators.

BNDES RenovaBio finances companies producing biofuels based on their energy-environmental efficiency. Those that, over the period of payment of loans, achieve co2 emission reduction targets stipulated by the bank benefit from lower interest rates.

The change announced on Thursday predicts that customers considered more efficient in the production of biofuels with less environmental impact will have the target reduced to 2%.

On the other hand, companies that contribute less to reducing greenhouse gas (GHG) emissions will have their targets increased to 10%. The percentage of 5% will remain fixed for the other plants.

In addition, there will be a reduction in the initial interest rate, formed by tlp or market cost benchmarks, a credit risk rate, plus the basic remuneration of BNDES, which will go from 1.5% to 1.3% per year.

Even after the grace period, the customer who proves to have reached the CO2 emission reduction targets may have the initial interest rate limited by up to 0.4%.

In search of customers

The Director of Productive and Sustainable Credit of BNDES, Bruno Aranha, hopes that the new measures can increase the impact of the program.

"The proposed changes seek to recognize that the current emission standards of the biofuels sector are heterogeneous, and it is necessary to think of goals compatible with the reality of each client. Considering only the operations already approved, we have the potential to avoid the emission of 2.2 million tons of carbon annually", he explained.

Launched in 2021, BNDES RenovaBio has had ten operations approved so far, totaling about R$ 900 million in financing, and projecting an average growth of 4% in energy efficiency. In all, the plants supported by BNDES RenovaBio will have the potential to issue about 2.2 million decarbonization credits (CBIOs).

Bndes RenovaBio's first operation of R$ 100 million – the maximum amount of each financing per plant – occurred last May for the Santa Adélia Plant in Jaboticabal (SP).

They also received credits Sugar Quata, Ferrari Agroindústria and Coruripe, São Manoel, Batatais, Santa Fe and Itamarati plants. With the support, these units expect to increase, on average, around 5% the energy-environmental efficiency of their production processes.

In May 2022, the financial institution expanded the available resources of BNDES RenovaBio by R$ 1 billion, providing R$ 2 billion by the end of 2022 to finance plants.

Source: epbr