“Ship will face a fine if it does not decarbonize fuel”, warns Mercadante

The president of the National Bank for Economic and Social Development (BNDES), Aloizio Mercadante, drew attention, this Thursday (9), to changes in fuels for navigation and aviation. The rules are defined by the United Nations (UN), which has been adopting measures with the aim of reducing carbon emissions, in an effort to mitigate the effects of global warming. According to Mercadante, the country needs to be prepared, and the BNDES has been looking into the issue.

“The UN is responsible for navigation and airspace. In airspace, the date and volume of renewable fuel that will have to be adopted from 2027 are already given. We are financing the production of SAF, which is the sustainable fuel of aviation”, said Mercadante, during the presentation of the BNDES financial statement for the first quarter of 2024.

In his view, the biggest concern, however, involves maritime navigation. “About 90% of all goods transported on the planet are carried out by ships. They will face fines if they don’t decarbonize the fuel. And we have a logistical problem getting to, for example, China. Our ship takes much longer than, for example, Australia. With this, we could lose competitiveness. And the BNDES is focusing on this”, he explained.

One of the tools that the country has to promote this energy transition is the Merchant Marine Fund, which has existed since 1958 and is aimed at promoting the development of the merchant marine and the national naval industry. There are several managers, but BNDES accounts for 75%. According to Mercadante, through the fund, R$6.6 billion is in the process of contracting, involving ferries, tugboats, pushers for transporting grain and ore, among other vessels.

Despite the challenges, he sees an opportunity. “In the short term, to adapt ships, the best answer is ethanol and methanol, of which Brazil is the second largest producer. We have the most advanced ethanol production, which is second generation. It is the most efficient , which decarbonizes the most. We can enter this market.” The president of BNDES stated that, to meet demand, it will be necessary to double ethanol production in Brazil.

Aviation subsidy

BNDES is also studying a way to support airlines, given that the sector is still feeling the losses accumulated throughout the covid-19 pandemic, when social distancing measures drastically reduced people’s movement, including transport to business and tourism. The alternative that has been discussed involves the National Civil Aviation Fund (FNAC). It relies on contributions from activities linked to the sector itself. “This fund could be used as a guarantor so that we can operate and offer credit. We have an ongoing discussion”, says Mercadante.

According to him, companies are going through a good time. “They are doing well. Revenue is growing, results are excellent. But they have liabilities from the pandemic. The planes were on the ground for practically a year and they were paying leasing, having to maintain teams of professionals, paying airport taxes. There were very heavy costs and companies had no revenue. Brazil did not adopt any measures during that period.”

Mercadante also stated that, in several countries, the sector received support to withstand the losses of the period. “After the covid-19 pandemic, there were aviation subsidies all over the world. There were in the United States, in almost all European countries, in India and others. China has always done this. And it is very important for a country of this size of Brazil to have a structured sector. We cannot reach many important locations in the country if we do not have companies that have a systemic view of the country and that give priority to Brazil. BNDES is willing to help these companies resolve the situation.” .