California to boost Brazilian ethanol imports as low-carbon targets bite

In California, stricter policies requiring ever-lower GHG footprints on biofuels mean that the door is opening for Brazilian sugarcane ethanol imports despite the import tariff still remaining in place. The state already uses 1.3 billion gallons of ethanol annually, a figure which could be converted in large part to Brazilian product.

It’s expected that California drivers would have to pay a premium to make up for the extra costs to comply with the new rules that would in essence require Brazilian imports.