Brazil: Ethanol industry welcome's new government biofuels proposal

Brazil's ethanol industry is set to grow with new government plans focusing on pushing biofuels.

A new federal program called RenovaBio will give fuel distributors targets to cut emissions, forcing them to gradually increase their share of biofuel volumes, reports Reuters.

President Michel Temer will soon announce the program via presidential decree, and the law could be activated as soon as next year. The move would be a huge step forward for ethanol producers who have been suffering from cheap petrol prices.

Investments in ethanol could pick up if the program is approved as it would stabilize the market and give an outlook to the industry´s potential over the next decade.