Platts to incorporate Brazilian CBIO carbon credits into Brazil ethanol assessments, March 10, 2025

Platts, part of S&P Global Commodity Insights, will incorporate Brazilian CBIO carbon credit prices into its assessments of anhydrous, hydrous and Grade B ethanol for export, as well as its Raw Sugar Equivalent indicator, effective March 10, 2025.

Including the Platts CBIO price assessment will better reflect the opportunity cost of forgoing the carbon credits when ethanol is exported instead of being retained for domestic consumption. Brazilian ethanol plants typically factor in the value of CBIOs when selling ethanol to trading companies for export. This approach allows producers to account for the missed opportunity of generating CBIOs, which would have provided financial reward for the plant and supported Brazil's decarbonization goals had the ethanol been used domestically.

The impacted assessments are:

• AAXNR00 -- Hydrous ethanol ANP FOB Santos/Paranagua ($/cu m)

• AAXNS00 -- Grade B ANP FOB Santos/Paranagua ($/cu m)

• AATAE00 -- Anhydrous ethanol ANP FOB Santos (cents/gal)

• AAWFO00 -- Anhydrous ethanol ANP FOB Santos ($/cu m)

• AAWFP00 -- Anhydrous ethanol ANP FOB Santos (Real/cu m)

• AAXOA00 -- Ex-mill Ribeirao Hydrous Raw Sugar equivalent (cents/lb)

The assessments will include the daily Platts CBIO (Real/mtC02e) assessment (ACIBA00) and consider applicable tariffs and taxes associated with these CBIO transactions.

The below table considers the impact of including CBIOs in the relevant hydrous and anhydrous Brazil ethanol assessments and Raw Sugar Equivalent indicator, from Jan. 1, 2025, to Jan. 31, 2025. The Platts CBIO (Real/mtC02e) assessment plus applicable tariffs and taxes associated with these CBIO transactions were used in the analysis. The CBIO had an average price Real 76.32/mtCO2e for January 2025.

The assessments currently appear in the Platts price database under the codes above, in the Biofuelscan and in the weekly Fuel Ethanol report.

The incorporation of CBIO in the ethanol prices was first proposed in the subscriber note published Jan. 7, available at https://www.spglobal.com/commodity-insights/en/pricing-benchmarks/our-methodology/subscriber-notes/010725-platts-proposes-to-incorporate-the-price-of-brazilian-cbio-carbon-credits-into-its-assessments-of-brazilian-ethanol-march-10-2025 .

Please send all feedback, comments, or questions on this proposal, to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available upon request.