A surge in direct diesel sales between producers and large industrial buyers in Brazil is challenging the RenovaBio decarbonization framework. Current rules require fuel distributors to purchase cbio carbon credits, but direct sales from producers to end users may bypass these obligations, creating a competitive imbalance. This regulatory gap allows producers to avoid the costs associated with funding cleaner fuel production, potentially undermining the effectiveness of Brazil's emissions policy. The situation highlights the need for updated carbon accounting rules that ensure compliance obligations follow the fuel regardless of the sales channel.
