Brazil may miss March 2026 deadline to raise biodiesel blend to 16%

Brazil may be unable to raise the mandatory biodiesel blend in diesel from 15% to 16% by the government’s set deadline of March 2026, an official from the Brazilian Ministry of Mines and Energy said.
Marlon Arraes, director of Biofuels at the ministry, stated during an industry event in São Paulo that there may not be sufficient time for the government to complete the necessary studies to implement the measure, Reuters reported.
“It’s possible that we won’t be able to meet the March deadline. It’s highly challenging,” Arraes said, adding that the government has yet to finalise a report required to introduce the next phase of the policy.
Brazilian law stipulates a gradual increase in the biodiesel blend of one percentage point per year, potentially reaching 20% by 2030. The official declined to provide a timeline for the introduction of the 16% mandatory blend.
A potential postponement of the deadline would primarily affect the soybean oil industry, as the oilseed is used to produce more than 75% of Brazil’s biodiesel.
The 15% blend, which was originally due to become mandatory in March this year, was only implemented in August, with the government citing inflation concerns.