Brazil’s commitment to COP21 after backtracking on ethanol tax exemption

In Brazil, the country’s decision to backtrack on tax exemptions for ethanol has been criticized not only by the domestic sugarcane industry but also by observers who believe the move goes against Brazil’s commitments to reducing climate change impacts made during the COP21 in Paris last December. Brazil committed to boosting ethanol and biodiesel blending to 18% of the fuel supply by 2030, requiring at least 50 billion liters of ethanol annually from the 30 million liters consumed during 2015/16. Reemploying the tax makes 100% hydrous ethanol more expensive at the pump and drivers less likely to choose it over gasoline that is blended with 25% anhydrous ethanol.

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