Highlights in 2018
Mission Innovation impact case study
Participation in MI has provided an inspiring environment for improving Brazil’s database on clean energy innovation investments. The existing experiences have helped accelerate the design of more effective reporting and use it as a tool for improving policies and strategies. One example is the collaboration between Brazil and the International Energy Agency (IEA) aiming at capacity building and methodological development to support a national platform for clean energy innovation spending reports and indicators. Various collaborators have joined this initiative since the last Ministerial Meeting. Third MI Ministerial (MI-3) side events and networking were useful to create links that proved effective to help Brazil build a strategy for improving the data governance on innovation investments for advancing clean energy.
In Brazil the governmental support for research and development activities in the energy sector is fragmented between several institutions. There are programs managed by regulatory agencies, investments by public banks, funding agencies and different public funds. It is understood that the design of a tool capable of concentrating information and classifying it according to international best practices is fundamental to optimize the use of resources and enable greater integration between research and development (R&D) activities with other countries. This is expected to improve the quality of investments, boost public-private collaboration, strengthen innovation networks and accelerate development of clean energy technologies.
Update on clean energy innovation policies and strategies
- According to the IEA (2018), Brazil has the greenest energy mix amongst large economies. In 2017, the proportion of renewables in the Brazilian energy matrix is around 43% and 80% in its electricity mix. In line with its goal to expand the use of renewable energy sources, it is expected to reach a share of 47% from renewable sources (electricity and biofuels) by 2027, according to the latest Ten Year Energy Expansion Plan.
- In the transportation sector, Brazil has strong biofuels mandates (27.5% ethanol mix in gasoline and 10% biodiesel mix in diesel). It aims to increase biofuels in the energy mix to 18% by 2030 (RenovaBio). The Rota 2030 programme, announced in 2018, requires vehicle manufacturers to increase energy efficiency of their fleet by 11% by 2022, and grants tax cuts on the purchase and import of electric and hybrid vehicles.
- The Science, Technology and Innovation Plan for Renewable Energies and Biofuels 2018-2022 is a strategic orientation document of the Ministry of Science, Technology, Innovation and Communications to operate in the areas of renewable energies and biofuels, being part of the National Science, Technology and Innovation Strategy (ENCTI 2016-2022).
Major innovation initiatives in 2018/19
- A successful webinar with seven Brazilian institutions, including the Energy Research Office and the Ministry of Mines and Energy last October presented IEA’s data work on tracking energy R&D budgets, as well as on national clean energy innovation policies and strategies. This was a kick-off to a set of programmed activities in 2019, including joint work on the development of a data management tool to support tracking clean energy R&D and innovation spending in the Brazil and a fact-finding mission.
- The National Agency for Petroleum, Natural Gas and Biofuels (ANP) and the National Electric Energy Agency (ANEEL), responsible for sector regulation, have been active in supporting energy innovation, supervising legal obligations of investments for private companies in research, development and innovation projects in the energy sector.
- Other public institutions have been active in financing or offering grants for R&D in clean energy, including the National Development Bank (BNDES) and FINEP (that manages a national fund for R&D, including energy).
Major activities in support of the Innovation Challenges in 2018/19
IC4 (Sustainable Biofuels): Three main instruments support RenovaBio operations: Annual Carbon Intensity Reduction Targets, Biofuels Certification and Decarbonisation Credits (CBIO). On March 15, 2018, Presidential Decree No. 9,308 established the RenovaBio Committee. On June 5, 2018, the National Council for Energy Policy (CNPE) approved, in Resolution No. 5, the annual compulsory targets for greenhouse gas (GHG) emissions reduction for fuel trade, as defined by the RenovaBio Committee. In addition, ANP started a program called “RenovaBio Itinerante” in September 2018, which explains the RenovaBio operation for biofuel producers. In November 2018, through Resolution No. 758, the National Agency for Petroleum, Natural Gas and Biofuels (ANP) established the accreditation requirements for Inspection Companies, the Biofuel Producer eligibility criteria and the Biofuels Efficient Production Certification. In January 2019, ANP accredited two Inspection Companies. On March 1, 2019, ANP put to public consultation the resolution draft that provides the individualization of the annual compulsory GHG emission reduction targets. Contributions will be presented on 16 April 2019. In the second half of 2019 ANP will publish the resolution that determines the rules to prove CBIO acquisition.