China may soon open its market to Brazilian ethanol, a move that could create a multi-billion dollar opportunity for Brazil and help China meet its ambitious environmental goals. The potential partnership is driven by China’s need to produce Sustainable Aviation Fuels (SAF) for its civil aviation sector. Since China lacks the agricultural land to produce enough ethanol for this purpose, Brazilian sugarcane-based ethanol is seen as a strategic and viable solution.
Discussions are currently underway between Brazilian officials and Chinese industry organizations. The cooperation is expected to lead to the signing of a memorandum of understanding on sustainable trade practices, including biofuels, at the upcoming UN Climate Change Conference. This initiative is part of a broader effort by Brazil to reduce its dependence on the trade rules of other nations, such as the US, with which it is experiencing growing trade tensions over ethanol. The move would not only boost Brazil’s agricultural sector but also align with its strategy to strengthen its role in the global bioeconomy.
Sources:
China, Brazil in talks to boost ethanol trade for sustainable aviation fuel production
Brazil eyes Chinese market for ethanol exports
