OREANDA-NEWS. December 13, 2017. Brazil's senate today unanimously approved biofuels legislation aimed at providing long-term incentives to boost consumption of ethanol and biodiesel.

The bill, known as Renovabio, was presented by the mines and energy ministry just over a year ago, and is considered the most important piece of legislation for the biofuels sector since the creation of the "Pro-Alcool" program in the 1975.

Renovabio is expected to double Brazilian ethanol production by 2030 and usher in $40bn in investment. It is also seen as a vehicle to stimulate new investment in biodiesel production capacity. The biodiesel industry is currently operating with roughly 45pc unused capacity. President Michel Temer is now expected to sign the bill into law within the 15-day legal limit.

The bill already passed the lower house on 29 November.

The legislation is instrumental to Brazil's ability to meet its COP21 Paris climate accord target of reducing greenhouse gases by 43pc in 2030 from 2005 levels.

Elizabeth Farina, president of Brazil's sugar and ethanol industry association Unica, said the passage of the bill this year should allow its full implementation by the 2019-2020 sugar cane harvest season, once associated regulations are approved over the next year.