Sunday, December 22, 2024
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Mozambican business community recommends extending deadline for biofuel blending

The Confederation of Economic Associations of Mozambique (CTA), the country’s main employers’ organisation, has proposed that the government extend the deadline for the mandatory introduction of biofuels into the mix of imported fuels. The recommendation was made taking into account the need to adjust investments, including the revision of the Biofuels Policy and Strategy, approved by the Council of Ministers in May 2009.
In a statement, the CTA pointed out that the current policy, which it considers outdated, mentioned products such as jatropha, sweet sorghum and copra as strategic for biofuel production. The proposed extension aims to allow for a proper review of these parameters, bringing them into line with the current realities of the sector.

The initiative is part of the Package of Economic Acceleration Measures (PAE), and the implementation of measure number 10 of the PAE included a business breakfast in partnership with the Ministry of Economy and Finance and the United States Agency for International Development (USAID). During the event, an evaluation study of Mozambique’s mandatory biofuel blending policy was presented.
The meeting brought together companies and business associations directly involved in the production of potential raw materials for biofuels, as well as biofuel producers and cooperation partners. The study concluded that, given the current production capacity of raw materials for biofuels, it would not be feasible to start mandatory blending in 2024, as initially planned.
Last September, the government had already approved the Regulation on Biofuels and their Blends, establishing mandatory blends for 2024. However, the CTA’s recommendation emphasises the importance of a more realistic approach, taking into account actual production capacity and the necessary adjustments to existing policy.

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