Keep the Door Open to Cleaner Fuels: Why U.S. Policy Should Strengthen, Not Undermine, the Role of Brazilian Ethanol

06/02/2025

Reflecting on this consequential moment in the geopolitics of the energy market and international trade agreements, Brazilian ethanol producers are reflecting on its past and planning for its future. It’s also a time to recognize the United States is making swift decisions to prioritize energy security. For over 20 years, Brazilian ethanol has been a reliable asset in helping the U.S., and especially California, drive down transportation emissions. Transportation still accounts for roughly 30% of overall carbon emissions, and 94% of the American fuel market is still petroleum based. As policymakers in Washington and Sacramento weigh critical updates to fuel programs, it’s vital they protect—and expand—the role of lower-carbon ethanol in building a more affordable, secure, and sustainable energy future.

Thanks to visionary U.S. climate policies like California’s Low Carbon Fuel Standard (LCFS), the market-based incentives have had direct influence in pushing the global market toward cleaner fuels. Ethanol—by volume and energy delivered—has been the workhorse of this transition over the last 15 years, despite investments prioritizing electrification and other zero-emission options. In recent years, 86% of LCFS credits were being generated by fuels other than ethanol, many of them promising but still scaling technologies. Ethanol has significant untapped potential to decarbonize the aviation and maritime sectors, and investments in the infrastructure and long-term trade agreements will be increasingly valuable for generations to come.

We applaud innovation and respect the US’s efforts to bolster its domestic production. But we must not lose sight of reality: today, ethanol remains the most available, affordable, and scalable alternative fuel. And few options deliver a carbon footprint as low as Brazilian ethanol—a fuel recognized globally for its environmental benefits.

Rising Economic Uncertainty Demands Smart Policy Choices

The conversation around clean fuels is unfolding against a backdrop of rising economic anxiety. With recession fears mounting and consumer confidence plummeting, affordability is front and center for American families. In this environment, low-cost, low-carbon fuels like ethanol are more important than ever. UNICA’s message—that Brazilian ethanol can improve both environmental and economic outcomes—is not only being validated by current market dynamics, but also reinforced by federal and state policy choices.

Policymakers are doing more than they realize to affirm ethanol’s value. For example, the Trump Administration’s recent effort on trade deals have signalled  that biofuels are a clear priority now, and for decades to come. At the same time, California’s recent amendment updates to the LCFS reaffirm a technology-neutral approach that recognizes the verifiable carbon reductions delivered by advanced biofuels like Brazilian ethanol.

Yet troubling signs remain. Protectionist efforts in Congress threaten to skew what is an increasingly global market and will ultimately drive up prices unnecessarily. True energy security won’t come through artificial trade barriers—it comes from global cooperation. The fuel market is inherently international, and the real threats to energy security come from trade wars and geopolitical conflict, not from diversified fuel imports.

Brazil Is a Proven Partner in America’s Clean Energy Future

Brazil has long been a constructive trade partner to the United States. Despite recent protectionist actions, the Trump Administration acknowledged Brazil’s status by limiting tariffs relative to other countries, even as sugar tariffs continued to disproportionately disadvantage Brazil. Still, UNICA remains committed to long-term partnership. That’s why our leadership is actively engaging with U.S. stakeholders—including in New York this week—to build dialogue and reaffirm our shared goals.

Ethanol offers not only a cleaner fuel option, but one that directly benefits U.S. consumers. Advanced biofuels like Brazilian ethanol can reduce pump prices by up to $0.20 per gallon and generate thousands of dollars in annual savings for drivers using high-blend fuels like E85. For example, flex-fuel vehicle drivers in California today can utilize E85 at more than $2.00/gallon cheaper than regular gas. Public awareness of these benefits is needed more than ever as Congress and California consider legislation to allow year-round use of E15—a common-sense move that would lower fuel costs, diversify supply, and enhance sustainability.In fact, studies have shown that increasing ethanol blending even modestly across the U.S. fuel supply can improve air quality and reduce greenhouse gas emissions, while easing pressure on oil prices during times of volatility. Ethanol is not a future solution—it’s a ready, real-world option that consumers can access now.

Next-Generation Fuels: Ethanol’s Role in Aviation and Shipping

Beyond today’s vehicles, ethanol is also a foundation for tomorrow’s fuels. As the aviation and maritime sectors look to decarbonize, ethanol-based feedstocks are being used to produce sustainable aviation fuel (SAF) and renewable marine fuels. These technologies offer a practical and scalable pathway to reduce emissions in difficult industries to decarbonize and where zero-emission alternatives are decades away from being realistic at scale.

Brazilian ethanol—with its natural, exceptionally low carbon intensity and constantly improving sustainable production practices—is especially well-positioned to serve as a building block for these next-generation fuels that the world’s most developed economies should utilize. UNICA is actively supporting the development of biorefineries and fuel innovation hubs that can deliver advanced ethanol-based fuels for aviation and shipping, helping these sectors achieve their climate goals faster and more affordably. Rather than sideline this progress with trade barriers, the U.S. should be working with partners in Brazil to lead the world in the development and deployment of these transformative solutions.

Global Energy Security Requires Global Solutions

UNICA strongly believes that energy security is not a zero-sum game. We export to dozens of nations and are proud that much of that demand was catalyzed by American leadership through market-based policies like Renewable Fuel Standard (RFS) and LCFS. These policies have inspired similar frameworks worldwide, with the U.S. rightly seen as a pioneer in decarbonizing transportation fuels. Brazil brings unique advantages—including its geographic positioning, fertile climate, trade-oriented coastline, sugarcane’s exceptionally low carbon intensity, and an expanding base of corn ethanol production. These resources should be leveraged to serve global markets, not restricted by trade politics. Sustainable energy partnerships can enhance long-term energy resilience, reduce emissions, and foster international stability.

The Road Ahead

Now is the time for science-based, forward-looking policy. We encourage American policymakers to embrace all low-carbon fuels—regardless of origin—that deliver verifiable environmental benefits. Congress should continue advancing access to higher ethanol blends that enhance both affordability and energy diversification. And the U.S. should recognize that Brazilian ethanol is not a threat, but a solution—ready to help meet demand, stabilize markets, accelerate climate progress, and bring down daily costs for the consumer.

The choice aligns with our shared interests: embrace proven, lower-carbon fuels like and expand consumer access—or risk higher prices, reduced fuel diversity, and stalled environmental progress. The United States and Brazil have built a decades-long partnership rooted in energy innovation, sustainability, and shared prosperity. Together, we can lead the world toward a cleaner, more affordable energy future—but only if we keep the door open to proven, sustainable solutions.

Lastly, with an open hand (and door) we invite American policymakers, business leaders, and civil society to join us at the 30th Conference of the Parties of the UNFCCC (COP 30) in Belem, Brazil this November.

 

Austin Heyworth

Austin Heyworth is the founder and principal of Heyworth Government Affairs, which he has led since 2022 with a focus on technology, healthcare, and energy policy. A seasoned California strategist and former public affairs leader at the rideshare giant Uber, Austin brings 15 years of experience navigating legislation, regulatory negotiations, and high-impact campaigns with state and national stakeholders. He began his career in the California State Capitol, working under Speaker John A. Pérez, running candidate campaigns and later played a central role in the passage of Proposition 22, a landmark ballot measure shaping the gig economy. Austin earned degrees in Economics and Political Science from UC Davis, where he played quarterback for the Aggies.