Brazil’s sugarcane ethanol programme is one of the world’s most successful large-scale renewable energy milestones, and in 2026 the country is extending its biofuel leadership into new areas including sustainable aviation fuel (SAF) and advanced biofuels. Understanding Brazil’s biofuel sector is increasingly important for anyone tracking the global clean energy landscape.

The Sugarcane Ethanol Foundation

Brazil has operated the world’s largest sugarcane ethanol programme for decades, following the launch of the ProAlcool programme in 1975 in response to the oil price shocks of that era. Today, Brazilian flex-fuel vehicles — which can run on any mix of petrol and ethanol — dominate new car sales, and ethanol accounts for a significant share of total road transport fuel consumption.

Brazilian sugarcane ethanol has among the best sustainability credentials of any biofuel globally, with a lifecycle greenhouse gas intensity of around 70–80% lower than petrol. The land use efficiency of Brazilian sugarcane production, combined with the high energy yield of the crop, makes it genuinely competitive with fossil fuels on both cost and emissions grounds.

Sustainable Aviation Fuel: The Next Frontier

Brazil is positioning itself as a major producer of sustainable aviation fuel (SAF), which is increasingly mandated by airlines seeking to reduce their aviation emissions. Brazilian sugarcane-based SAF has attractive economics and sustainability credentials, and several major projects are in development to convert existing ethanol capacity to SAF production.

Policy and Regulation

Brazil’s RenovaBio programme provides a regulatory framework that supports biofuel production through decarbonisation credits, creating economic incentives for producers and users of low-carbon fuels. The programme has attracted significant investment in the sector and positions Brazil as a key supplier of clean fuels to global markets.