The National Bank for Economic and Social Development (BNDES) of Brazil approved modifications to the rules of its Incentive Program for the Reduction of CO2 Emissions in the Fuel Sector (RenovaBio), with a budget in local currency equivalent to approximately 385 million dollars.

The BNDES RenovaBio program, launched in 2021, finances companies that produce biofuels to encourage them to improve their energy and environmental efficiency. Those who, during the repayment term of the loan, achieve the CO2 emission reduction targets established by the program, enjoy a reduction in interest rates.

In its new format, BNDES RenovaBio establishes goals to reduce carbon emissions according to the client’s current state in terms of energy and environmental efficiency (for example, clients that still need to improve their emission standards will have targets raised to 10%). In addition, there will be a reduction in the initial interest rate, which will go from 1.5% to 1.3% per year. Furthermore, if the client demonstrates, after the grace period, that it has achieved the CO2 emission reduction targets defined by the program, the initial interest rate will be reduced by up to 0.4%.