Platts launches daily Brazil CBIO assessment, June 3, 2024

Platts, part of S&P Global Commodity Insights, has launched a daily CBIO price 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 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 Brazil, Bolsa, Balcão (B3), a Brazilian derivatives exchange.

Details of the assessment 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. The transfer of ownership of the assessed CBIO against payment is in line with the guidelines of B3.

The Platts CBIO price assessment considers 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 4:30 pm Sao Paulo market close. The assessment follows the Brazilian federal holiday schedule.

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

The assessment was first proposed in the subscriber note published April 16 available here.

Please submit any feedback, comments or questions to mrts_biofuelsandfeedstocks@spglobal.com and pricegroup@spglobal.com.

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