In Brazil, half of the energy matrix already comes from renewable sources, pollution levels are lower, and sugarcane ethanol plays a central role. This reflects a broader global challenge: limiting temperature rise to 1.5°C, as set by the Paris Agreement. The energy sector accounts for three-quarters of global emissions, with transport alone contributing 20% and remaining one of the hardest areas to decarbonise.
Electric mobility and hydrogen are essential long-term solutions, but cannot scale fast enough to cut emissions in the 2020s and 2030s. Electrification faces challenges such as mineral scarcity and battery production emissions, which requires complementary solutions: biofuels, including ethanol produced both in Europe and abroad, provide an immediate pathway to promote technology neutrality, as the Brazilian experience offers lessons Europe can adapt.
Bioethanol’s versatility: from roads to bioplastics
Cars, planes, ships and even plastics can all reduce emissions today thanks to ethanol-based solutions. They provide one of the most viable solutions available by working within existing infrastructure and engines, making them a scalable option.
In road transport, ethanol blends such as E10 already reduce emissions in millions of cars without requiring major infrastructure upgrades. In Brazil, flex-fuel vehicles have been available since 2003 ; equipped with sensors that detect the proportion of ethanol, the engine automatically adjusts parameters for optimal performance, which has delivered rapid and sustained results.
In aviation, ethanol-derived Sustainable Aviation Fuels (SAF), including those produced through the Alcohol-to-Jet (AtJ) pathway, have been approved under international certification processes. They can use existing airport and aircraft infrastructure, cutting the carbon footprint of air travel without compromising performance.
In maritime transport, where no single scalable solution exists, ethanol is emerging as a credible candidate. The International Maritime Organization’s net-zero strategy for 2050 recognises the need for a diverse portfolio of fuels. Engine trials with leading European manufacturers are already demonstrating ethanol’s ability to integrate smoothly into shipping operations.
This innovation delivers even deeper climate benefits: studies show 2G ethanol emits around 80% less CO₂ than gasoline. The technology is scalable beyond Brazil, as it can use biomass from agroforestry, construction, and urban residues worldwide
Beyond mobility, sugarcane-based ethanol opens the way for bio-based plastics. By converting ethanol into renewable polymers, industries can reduce reliance on fossil-derived plastics, diversify revenue streams, and contribute to a circular economy. In short, ethanol is more than a fuel: it is a versatile platform for sustainable innovation.
Brazil as living proof
Brazil provides a real-world example of how ethanol canpower a cleaner, more sustainable economy. Since 2003, flex-fuel vehicles have allowed drivers to use gasoline, ethanol, or any blend of the two seamlessly. Today, 76% of the fleet is flex-fuel.1 The national fuel mix currently contains 30% ethanol.
This achievement rests on a strong regulatory foundation. Since the 1970s, Brazil has pioneered ethanol through policies such as Proálcool, RenovaBio, and the recent Fuel of the Future Law. Together, they created one of the world’s most advanced biofuel markets.
The impact is significant: by 2024, half of Brazil’s energy matrix came from renewable sources. Ethanol alone accounted for 20% of transport energy consumption, helping the sector reach a 25.7% renewable share. From 2003, the year flex-fuel cars were launched, to March 2025, the use of ethanol has prevented more than 730 million tonnes of CO₂ from being released into the atmosphere. Achieving a similar effect through nature would require planting 5.1 billion trees and maintaining them for the next 20 years2 .
Brazil has also shown how sustainability and land use can be managed responsibly. Sugarcane ethanol delivers high yields of around 7,000 litres per hectare, far above most feedstocks. Cultivation is concentrated more than 2,000 kilometres far away from the Amazon and occupies only 1.1% of Brazil’s territory, with nearly all recent expansion occurring on degraded pastures. Between 2000 and 2020, this model contributed to a net removal of nearly 10 million tonnes of CO₂ per year.
“Brazil has shown what is possible to ambitiously achieve. Europe has the regulatory momentum. If action begins today, the EU and Brazil can unlock a global pathway to decarbonisation
Raízen’s leadership and global innovation
Raízen is at the centre of this story as the world’s largest sugarcane producer and processor, leader in sustainable first-generation (1G) ethanol and a pioneer in second-generation (2G) ethanol at commercial scale. By using residues such as bagasse and straw, 2G technology increases ethanol output by up to 50% from the same land area. Production is traceable and monitored through remote sensing to ensure compliance with a wide range of socio-environmental criteria.
This innovation delivers even deeper climate benefits: studies show 2G ethanol emits around 80% less CO₂ than gasoline. The technology is scalable beyond Brazil, as it can use biomass from agroforestry, construction, and urban residues worldwide.
Sugarcane processing generates not only ethanol but also sugar and bioelectricity, making many plants self-sufficient. In 2024, bioelectricity from sugarcane accounted for 60.9% of Brazil’s total bioelectricity3. By integrating multiple value streams, Raízen demonstrates how renewable fuels can anchor sustainable, circular growth, and its operations illustrate broader bioeconomy at work.
A partnership opportunity for Europe and Brazil
Europe’s climate ambitions and Brazil’s practical experience create a natural alliance with technical work ongoing to raise ethanol blending limits to 20%. Raízen advocates for this increase, as higher blends would accelerate decarbonisation of the existing fleet, whose cars will remain a large part of the fleet beyond 2030.
Brazil complements these goals with decades of operational experience, proven technology, and a ready-made fleet of flex-fuel vehicles. The partnership between both regions could accelerate progress toward shared climate targets while supporting energy security, competitiveness, and rural development.
For Europe, adopting a technology-neutral approach is essential. There is no silver bullet for transport decarbonisation. Electrification is critical, but biofuels can cut emissions from the hundreds of millions of combustion engines still on the road. Recognising ethanol as a legitimate decarbonisation pathway will balance the EU’s ambition with realism.
Political and regulatory frameworks must prioritise solutions that are proven, scalable, and science-based. That means life-cycle assessmentsshould guide decision-making: every year of delay makes climate goals harder to reach, the science is clear.
Brazil has shown what is possible to ambitiously achieve. Europe has the regulatory momentum. If action begins today, the EU and Brazil can unlock a global pathway to decarbonisation.
With its ability to cut emissions immediately across transport modes, support circular industries like bioplastics, and mobilise rural economies, ethanol belongs at the heart of the net-zero toolbox, the Raízen’s message is simple: ethanol is ready now, and will remain a central part of the future energy mix.
List of references
- Sindipeças e Abipeças – Relatórioda Frota Circulante – edição 2024
- União da Indústria de Cana-de-Açúcar. (2025, October 15). Etanol. UNICA. https://unica.com.br/setor-sucroenergetico/etanol/
- BEN 2025 - Relatório Síntese 2025 - Ano base 2024
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