Brazil, recognized for its abundance of natural resources, is in a unique position to lead the sustainable production of renewable fuels, such as biomethane. However, this potential is still far from being fully utilized. While Europe makes significant progress in the production of biogas and biomethane, with clear goals to reduce its carbon emissions, Brazil faces challenges that need to be overcome to explore this promising market.
Currently, Brazil produces around 2.9 billion cubic meters (bcm) of biogas in 885 plants, but 74% of this volume is concentrated in landfills, limiting its expansion potential. In comparison, the European Union produces 21 bcm of biogas and biomethane combined, generating annual savings of 60 million tons of CO2 equivalent, as well as thousands of jobs.
Biomethane plays a crucial role in reducing greenhouse gas (GHG) emissions, particularly in the transportation sector and in agricultural areas. It can replace fossil fuels, allowing sectors such as agribusiness and waste management to use their own by-products to generate clean energy. This circularity in energy production not only reduces the carbon footprint, but also promotes economic sustainability.
Additionally, the connection between biomethane and the carbon credits market is a key factor in accelerating this transition. Brazil already has a regulated market for decarbonization credits, which has been operating since 2020 and encourages the production of biofuels through Decarbonization Credits. These credits, tradable on the financial market, generate additional income for bioethanol, biodiesel and biomethane producers.
For Brazil to reach its full potential in the biomethane market, it will be essential to simplify regulatory processes, expand tax incentives and develop the necessary infrastructure for the production and distribution of this fuel on a large scale. The European experience, with well-established policies for the development of the sector, can serve as an inspiration for the country.
Amazon Connection Carbon is at the forefront of this movement, committed to reducing carbon emissions and advancing renewable energy practices. ACC understands that biomethane, together with carbon credits, is an essential solution to achieving decarbonization targets. Connecting sustainability projects to the preservation of the Amazon, ACC promotes the change that Brazil needs to lead the energy transition.
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