Minimum proportion of residual oils and fats in biofuel production will become mandatory from 2028.

The measure was issued in the context of the implementation of the Future Fuel Law and CNPE Resolution No. 13/2024, reinforcing the Brazilian regulatory direction aimed at expanding the use of renewable and lower-carbon-intensive raw materials in the national energy matrix.

The Ordinance establishes a minimum use of 1% of used cooking oil (UCO) in relation to the total renewable raw materials employed by biodiesel producers and by producers of agroforestry systems (AFS) and green diesel that use oils or fats as raw materials in their respective technological routes. Compliance with this target will be voluntary in 2026 and 2027 and will become mandatory from January 1, 2028.

The minimum proportion established by the Ordinance will be reviewed every three years by the Ministry of Mines and Energy (MME) and the Ministry of the Environment (MMA), starting from the beginning of its mandatory validity on January 1, 2028.

Verification of compliance with the mandatory minimum proportion will be carried out annually by the National Agency of Petroleum, Natural Gas and Biofuels (ANP), which will also regulate the procedures, deadlines and instruments necessary for monitoring, verifying and inspecting its compliance.

It is also worth mentioning that, if the biodiesel, SAF, or green diesel producer controls two or more industrial units, the verification of compliance with the obligation will be carried out in a consolidated manner for all units under its control.

After verification, the volume actually used that exceeds the amount necessary to meet the minimum mandatory proportion may be used to fulfill the obligation in subsequent fiscal years, according to regulations to be issued by the ANP (National Agency of Petroleum, Natural Gas and Biofuels).

From a regulatory and market perspective, this initiative is part of a broader movement to strengthen instruments aimed at decarbonizing the Brazilian energy matrix, especially in light of the expansion of sustainable fuel markets and the development of mechanisms associated with emission reduction and the energy transition.

In this context, the measure seeks to expand the reuse of used cooking oil, stimulate investments in collection, traceability and pre-treatment, and strengthen the sustainable production of biodiesel, SAF, and green diesel in the country.

Beyond the environmental benefits associated with the circular economy and the reduction of greenhouse gas emissions, the measure tends to increase the economic relevance of used cooking oil (UCO) as a strategic input for the production of advanced biofuels. On the other hand, the implementation of the policy may require strengthening the collection and certification chains of these residues, as well as the development of traceability mechanisms capable of ensuring the origin and availability of the raw material in the face of the growing demand from the biodiesel, SAF (sugar-based anabolic ethanol), and green diesel sectors.

The Ordinance reinforces the importance of regulatory monitoring by agents in the biofuel chain, producers, distributors, companies with decarbonization targets, and sectors exposed to energy transition and sustainability instruments.

The ANP’s (National Agency of Petroleum, Natural Gas and Biofuels) complementary regulations will be particularly relevant to defining operational aspects related to proving compliance with the obligation, accounting for volumes used, and inspection rules.

Interministerial Decree MME/MMA No. 3/2026 will enter into force on July 1, 2026.

This material is exclusively institutional and informative in nature, limited to presenting general normative and administrative aspects of the subject.

Evelini Oliveira de Figueiredo Fonseca | evelini.fonseca@nascimentomourao.adv.br
Partner in the Environmental, Regulatory and Biodiversity Law area.

Bianca Oliveira Begossi | bianca.begossi@nascimentomourao.adv.br
Partner in the Environmental, Regulatory and Biodiversity Law area.