CNI study warns of risk of lack of biofuels and rising prices by 2035
According to the CNI, production may fall short of the decarbonization targets for the next decade, putting pressure on prices for consumers and companies.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
Brazil is at risk of facing a lack of biofuels and rising prices by 2035, according to a warning from the CNI (National Confederation of Industry). The study was released on Wednesday (28) and, according to InfoMoney, points to a scenario in which supply does not keep up with the pace necessary for the country to meet its goals.
The center of diagnosis is production. According to the report, the capacity to manufacture biofuels may be insufficient to meet decarbonization goals for the next decade. The problem, therefore, is not the lack of objectives, but rather the speed at which the productive structure is able to grow.
This discrepancy appears at a time when the country has advanced the rules to increase the consumption of renewable fuels. The demand policy has moved forward, but supply still depends on conditions that are not guaranteed.
That's where the crux of the matter lies. The expansion of production capacity depends on investments that are not assured. If the contributions do not come at the right time, supply restrictions tend to materialize, putting pressure on the prices paid by consumers and companies.
In the liberal reading that guides this newspaper, regulatory predictability is what weighs most in this type of decision. Without stable rules and legal certainty, investment tends to hesitate, and the bill ends up falling on those who consume.
What changes for the investor
For those who follow the stock market, interest rates and exchange rates, the alert deals with cost and supply risk, not a recommendation. Companies linked to the production and consumption of biofuels can feel the effects of possible price changes and investment decisions that depend on clear rules. The most prudent reading is to monitor the progress of announced investments, the stability of consumption rules and the evolution of costs before drawing conclusions about results. This article does not provide price forecasts or indicate the purchase or sale of assets.
Automatically translated from Portuguese.
