Brazil takes an alternative path to reduce transport emissions

Brazil is unlikely to follow the global trend of vehicle electrification to cut carbon emissions. Instead, Brazil will continue to invest and develop ethanol technology and will favour the use of biofuel to achieve its goals. The country pioneered the use ethanol as a car fuel almost a century ago and since the introduction of flex fuel cars, ethanol demand has increased massively. We expect the flex fuel fleet to continue increasing in Brazil, supporting gasoline and ethanol demand growth in the long term and ethanol demand will account for more than half of total motor gasoline demand in the long term. Ethanol as car fuel was first used in Brazil to alleviate the gasoline shortage in the country, but this also helped to develop the economy in the regions where sugarcane is produced. Favouring the use of ethanol to reduce carbon emissions in the short and long term gives the country a new opportunity to use the unique technology while supporting the local economy.