Brasilcom et. al. v. Ministério de Minas e Energia

Brazil

Jurisdiction: Superior Court of Justice

Principle law(s): Law 13.576 on National Biofuels Policy (RenovaBio)

Side A: Association of Fuel Distributors (Brasilcom) (Corporation)

Side B: Ministério de Minas e Energia (Government)

Core objectives: Whether to allow for further reduction of decarbonization targets due to the Covid-19 pandemic.

Summary

On November 18, 2020, the Association of Fuel Distributors (Brasilcom) filed a writ of mandamus with the aim of reducing by 25% the acquisition targets of 14.5 million annual Decarbonization Credits (CBios) for fuel distributors corresponding to the sales of ethanol and biodiesel by mills and distilleries. The writ intended to modify the individual targets for the distributors in the RenovaBio (National Biofuels Policy, Law No. 13.576/2017) program. Renovabio has the goal of contributing to the targets under the Paris Agreement, expanding biofuels in the energy matrix, ensuring the predictability of the fuel market, inducing gains in energy efficiency and reducing GHG emissions in the production, sale and use of biofuels. The annual national decarbonization targets for the fuel sector are RenovaBio’s main instrument. In 2019, the individual mandatory measures for the distributors of fuel were defined in ANP Resolution No. 791/2019.

Yet in 2020, the National Counsel of Energy Policy (CNPE) reduced the initial measures due to the effects of the Covid-19 pandemic in the distribution of fuel (CNPE Resolution No. 8/2020). On November 3, 2020, distributors filed a petition to only comply with 50% of current measures, amounting to only 25% of the original targets. The lower court granted the injunction and suspended the terms of the schedule for the acquisition of CBios and accepted the request for a reduction of the targets. On November 16, 2020, the appellate court reversed the decision. On December 5, 2020, the STJ maintained the decision that annulled the injunction.

Case documents

Related laws and policies

This law implements Brazil legislation

Law 13.576 on National Biofuels Policy (RenovaBio)

Passed in 2017 Legislative

The present law establishes the National Biofuel Policy - RenovaBio, and details for its principles, objectives, fundamentals and instruments. RenovaBio provides for 1) Biofuels certification, 2) the goals of reducing GHG emissions in the fuel matrix and 3) issue and trading decarbonisation credi...