Brazil and Europe are driving the transition to biofuels: strategies, progress, and challenges

  • Brazil will increase the proportion of ethanol and biodiesel in its fossil fuels in August 2025 as a strategic measure to advance decarbonization and strengthen its climate leadership ahead of COP30.
  • The European sector is making progress on new supply agreements for biofuel feedstocks, especially waste products such as used cooking oil, to supply a growing network of biorefineries and produce more sustainable fuels.
  • India and Paraguay are also joining the global trend by increasing the percentage of ethanol in fuels, consolidating the Latin American and Asian model of cleaner mobility.
  • Ethanol and biodiesel are reinforcing their role as viable and scalable alternatives in the face of existing barriers to the mass deployment of electrification in several regions.

Generic image of biofuels

The global push for biofuels continues to strengthen as an alternative to address the energy transition and reduce dependence on fossil fuels. The latest move on this board has been made by Brazil, which takes a key step by raising the mandatory percentage of ethanol in gasoline and biodiesel in diesel, aligning this decision with both the international energy price situation and its environmental commitments.

This measure also responds to the need to show concrete progress in the fight against climate change, especially in the context of the upcoming UN Climate Change Conference (COP30), whose celebration in the Amazonian city of Belém will place Brazil at the epicenter of the global debate on sustainability and energy transition.

Brazil strengthens its leadership in bioenergy with the increase in E30 and B15

Image of biofuels Brazil

Starting in August 2025, gasoline in Brazil will have to contain 30% ethanol (E30), while diesel will have 15% biodiesel (B15).This change, approved by the National Energy Policy Council, seeks not only to reduce greenhouse gas emissions, but also to reduce pressure on prices and ensure a greater degree of energy autonomy.

President Luiz Inácio Lula da Silva emphasized that these advances will demonstrate the country's capacity for economic growth without resorting to further deforestation, thanks to new technological developments in the agricultural sector. Furthermore, The Government is confident that these new blends will partially contain fuel prices., which have seen increases due to international tensions.

The Ministry of Mines and Energy emphasizes the firm commitment to increasing the proportion of biofuels reduces dependence on fossil fuels and limits the need to import gasoline, acting as a shield against the instability of international markets.

Brazil, one of the world's largest ethanol producers, has traditionally based its industry on sugarcane, although the use of corn as a feedstock has also grown considerably in recent years. The announcement reinforces Brazil's position as an international benchmark in the development and mass use of liquid biofuels.

A trend that transcends borders: Paraguay and India accelerate the integration of ethanol

International biofuel production

The Brazilian model is not the only protagonist in the advancement of biofuelsThis year, Paraguay became the first Latin American country to officially adopt E30, thanks also to a thriving bioenergy industry supported by crops such as sugarcane and cassava.

For its part, India surprised by accelerating the implementation of the E20 (20% ethanol in gasoline) at all its service stations by 2025, ahead of its original schedule and demonstrating its determination to transform the transportation sector. The country is already setting its next goal of achieving E30 before the end of the decade, closely following the Latin American example and consolidating a global-scale transition.

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Innovation in Europe: Agreements for a circular and sustainable supply chain

Biofuels supply chain

The European biofuels scene is also showing signs of transformation, with energy companies strengthening their efforts to ensure a stable and sustainable supply of raw materials. An example of this strategy is the recent agreement between 15 years between TotalEnergies and Quatra, through which the collection and recycling of used cooking oil from different parts of Europe for conversion into biofuels, including biodiesel and sustainable aviation fuel (SAF).

Installed processing capacity is growing alongside the transformation of traditional refineries into biorefineries, as evidenced by the La Mède plant in France, with an annual production of up to 500.000 tons of biofuel. In parallel, the Grandpuits industrial complex is preparing to produce 230.000 tons of SAF annually, meeting the demand for less polluting fuels from the aviation industry.

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Advantages, challenges, and prospects of biofuels in the energy transition

The increase in the share of biofuels in conventional fuels presents environmental, economic and social benefitsOn the one hand, it reduces polluting gas emissions; on the other, it reduces the need for imports and boosts agricultural and rural sectors linked to biomass production, generating jobs and local added value.

However, the development of biofuels also raises important challenges, such as the need to consolidate stable regulations, improve tax incentives, and ensure that the expansion of energy crops does not conflict with food security or environmental protection.

Another relevant advantage is that Liquid biofuels, such as ethanol and biodiesel, can be used in existing infrastructure. and in current vehicles, which facilitates their immediate deployment, especially in countries where the electrification of transport poses greater logistical or economic challenges.

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The experiences of Brazil, Paraguay, and India demonstrate that sustained public policies, technical support, and collaboration between the public and private sectors are essential ingredients for accelerating the transition toward cleaner and more sustainable mobility and economy.

The global energy landscape is experiencing a moment of accelerated reconfigurationThe strengthening of biofuels in Brazil and the decisive commitment of countries like Paraguay and India invite us to envision a future where these fuels play a leading role in reducing emissions and achieving energy independence. At the same time, European industry is making progress in agreements and alliances that guarantee the supply of sustainable raw materials and large-scale production of alternative fuels. The challenge now is to consolidate these advances, ensure their long-term viability, and raise awareness of their potential in society and international markets.

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