Executive Summary

This policy brief argues that Brazil has a unique opportunity to become a global leader in Sustainable Aviation Fuels (SAF). With abundant feedstocks, a mature ethanol industry, clean electricity, and decades of biofuel expertise, Brazil combines the core ingredients needed to produce low-carbon aviation fuels at scale. Meeting global SAF demand will be nearly impossible without large-scale bio-based solutions, and Brazil is one of the few countries positioned to supply them sustainably. Achieving this potential will require not only scaling production but also securing recognition for Brazil’s bio-based routes in international certification systems, aligning domestic regulations with global SAF mandates, and pursuing active diplomatic engagement to shape evolving standards.

Seizing this opportunity, however, requires deliberate policy action. The brief outlines a technology-neutral strategy that develops multiple pathways: using Hydroprocessed Esters and Fatty Acids (HEFA) to jumpstart production and build early know-how; accelerating Alcohol-to-Jet (AtJ) from sugarcane and second-crop maize as the core medium-term route; and advancing longer-term options like Fischer–Tropsch process (FT) from residues and Power-to-Liquid (PtL) through pilot projects. SAF production can serve as a bridge between Brazil’s agricultural base and its industrial capabilities, fostering domestic manufacturing, innovation, and skilled employment.

To unlock this potential, Brazil will need a coordinated policy framework that reduces risks and aligns investment with long-term climate goals. Clear and escalating SAF blending mandates can anchor demand and give investors confidence, while concessional finance from development banks can de-risk early projects. Preferential procurement can create stable offtake markets, and targeted R&D funding can build domestic capabilities in refining equipment and catalysts. Local content requirements, starting with simpler components and gradually moving up the value chain, can foster industrial spillovers.

By embedding SAF development within a broader green industrial policy, combining clear blending mandates, targeted financing, support for capital goods localization, and active international standard-setting, Brazil can transform its biofuel legacy into a competitive edge. In doing so, the country can not only contribute decisively to global aviation decarbonization but also catalyze a new phase of industrial development rooted in sustainability.