UDOP president Hugo Cagno Filho proposes a permanent and technical dialogue with the government that will take office in 2027 in order to consolidate ethanol — including the E32 blend with a possible move to 35% —, biomethane and bioelectricity, with compatible financing and coordinated policies.
UDOP president Hugo Cagno Filho said that the re-election of Luiz Inácio Lula da Silva opens a new cycle of responsibilities for the government and proposed that the task of the bioenergy system is to establish a permanent, proactive and technical dialogue with the administration that will begin its term in 2027. The leader, who is also executive director of Usina Vertente, set out his position in an article published on November 13.
According to Cagno Filho, once the electoral dispute is over it is necessary to build convergences around a national agenda that expands energy security, reduces emissions, generates jobs and turns productive capacity into development. "Bioenergy meets the conditions to contribute to all of those objectives," he said.
For the UDOP president, the sector must be recognized as a strategic partner in that construction: it produces food, renewable fuels and electricity, drives industrial chains and sustains opportunities in the country's interior. That diversity requires policies coordinated across energy, agriculture, industry, environment, labor and economy, since decisions taken in isolation can jeopardize investments whose viability depends on coherence among those areas.
The article notes that the Lei do Combustível do Futuro, RenovaBio and the Programa Mover offer instruments to bring decarbonization, innovation and competitiveness closer together. The challenge of the next term will be to ensure execution, stability and coordination: targets must translate into effective demand, regulations must offer legal certainty and oversight must guarantee that everyone meets its obligations.
In UDOP's view, ethanol must occupy a central position in that strategy. In light mobility, Brazil has a solution developed over decades, with production, distribution, technology and a large flex fleet. The leader proposes encouraging the use of hydrous ethanol with tax conditions that recognize its environmental benefits and with clear information for consumers, while flex hybrids make it possible to combine electrification and renewable fuel. Public policy must compare alternatives by lifecycle emissions, considering production, energy use and the characteristics of the Brazilian energy mix.
The adoption of gasoline with 32% anhydrous ethanol (E32), on a temporary basis, represents a concrete step forward. Consolidating that percentage and the legal possibility of reaching 35%, conditional on proof of technical feasibility, require planning that brings together testing, supply capacity, logistics and predictability. The text recalls that this agenda was at the center of the debate moderated by Cagno Filho at the Datagro International Conference in October.
The opportunities go beyond cars. Ethanol can gain ground in maritime transport and as a feedstock for sustainable aviation fuel (SAF), through the alcohol-to-jet conversion route. These are markets with their own certification, safety, performance and traceability requirements, for which demonstration projects, supply infrastructure and long-term contracts are needed. Brazilian diplomacy must work for recognition of the environmental credentials of its products, based on scientific criteria and without discriminatory barriers.
In heavy transport and in agricultural operations, ethanol can also reduce diesel consumption in engines and systems developed or adapted for that purpose, which requires technological and economic validation, technical assistance and adequate supply. The article warns that the point is not to push for immediate replacement across the entire fleet, but to create conditions for efficient solutions to advance. It cites as a lesson that, as far back as the 1980s, ethanol-powered trucks were already being offered to the sugarcane market: developing the technology is only part of the way, since its consolidation requires economic viability, infrastructure and continuity of public policies.
Biomethane extends that transformation. The use of vinasse, filter cake and other residues makes it possible to produce renewable fuel for vehicles, industrial processes and the substitution of fossil natural gas, in addition to reducing dependence on diesel in the sector's own operations. For projects to get off the drawing board, predictability is needed for decarbonization targets, certification mechanisms and trading conditions; grids, road transport of gas, connection and market access must accompany the expansion of supply.
Bioelectricity completes that set of solutions. Generation from biomass can contribute to the security of the electrical system and add better value to resources already available at production units, which requires grid access and contracting mechanisms that recognize the attributes of each source. A policy for the bioenergy system must encourage the integrated use of raw material, remunerating efficiency and environmental performance.
None of these fronts will prosper without compatible financing, says the UDOP president. High interest rates make working capital, sugarcane field renewal, industrial modernization and the implementation of new technologies more expensive; capital-intensive projects need terms and grace periods suited to the maturation of investments.
In that context, the Plano Safra must address the needs of bioenergy raw material producers, including independent suppliers. The announced resources must be available at the right time, with accessible conditions and procedures proportional to the size of the borrowers. Crop renewal, mechanization, irrigation where viable, precision agriculture and climate adaptation are essential investments; rural insurance and risk management must gain consistency in the face of droughts, fires and other extreme events.
Another sensitive issue is the implementation of changes to working hours, especially their effects on seasonal and continuous-operation activities. The sector must participate responsibly, recognizing the importance of rest, health and quality of life, while agribusiness activity has seasonality and continuous operations that require a specific organization. Dialogue among government, companies and workers must seek legal certainty, collective bargaining and viable operating conditions, within the rules in force.
UDOP said it is willing to contribute to that agenda, bringing together companies, professionals, researchers and public authorities. For the association, the new term will have the opportunity to consolidate policies capable of turning Brazil's advantages into lasting international leadership, which requires listening, verifiable commitments and continuity. "The future of the bioenergy system will be built by the decisions we make now, with a vision of the country and responsibility toward the next generations," Cagno Filho concluded.
