Platts proposes to launch daily Brazil CBIO assessment

Platts, part of S&P Global Commodity Insights, proposes to launch a daily CBIO assessment, effective June 3, 2024.

The Crédito de Descarbonização, or CBIO, is the equivalent of 1 mt of carbon dioxide not released into the atmosphere via the use of certified biofuels over traditional fossil fuels. The CBIO is a credit adopted by the Brazilian National Biofuels Policy, or RenovaBio, as a tool to ensure Brazil attains its annual decarbonization targets for its transportation sector.

CBIOs are issued by biofuel producers and importers authorized by the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and certified for Renovabio. Distributors are obligated to acquire CBIOs annually to offset their greenhouse gas emissions, based on their purchase and sale invoices of transportation fossil fuels during the previous year.

CBIOs are registered, traded, and retired via the Brazil, Bolsa, Balcão (B3), a Brazilian derivatives exchange.

Details of the proposed specifications are as follows:

CBIOs are issued with no expiration date, but CBIOs can be retired, or removed from the market at the request of an obligated or non-obligated party. Fuel distributer annual target goals for CBIOs can only be satisfied via retired CBIOs. Transfer of ownership of the assessed CBIO against payment is in line with the guidelines of B3.

The Platts CBIO assessment would consider market information collected from B3, intermediaries, and custodians and reported to Platts and published throughout the day, including firm bids, offers, trades, and indicative values, as well as any other data deemed relevant up to the close of the assessment process at 16:30 Sao Paulo time market close. The assessment would follow the Brazil federal holiday schedule.

Market information with non-standard specifications may be considered and normalized back to the standard.

Please submit any feedback, comments, or questions about this proposal to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com by April 29.

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