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[BUSINESS] · Argentina · 8 sources

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Argentina Chamber of Deputies debates biofuels law reform

The Argentine Chamber of Deputies has initiated discussions regarding the reform of Law No. 27.640, following its preliminary approval in the Senate. The proposed legislation aims to gradually increase mandatory biofuel blending requirements: biodiesel from 7.5% to 10% and bioethanol from 12% to 15% within one year of enactment.

The debate has highlighted significant tensions between large industrial players and small-to-medium enterprises (SMEs). Representatives from regional biodiesel SMEs expressed concerns that the transition scheme, which extends to 2036, could lead to market concentration by favoring large integrated oilseed companies over smaller producers.

Industry groups, including the Association of Maize and Sorghum of Argentina (Maizar), have advocated for the reform to boost local industrialization and energy sovereignty. They noted that ethanol significantly improves fuel octane ratings compared to pure petroleum-based gasoline. While some political figures have attributed the initiative to President Javier Milei, industry leaders noted that the final Senate version underwent substantial changes to incorporate provincial interests.

Entities

Argentina · Association of Maize and Sorghum of Argentina · Chamber of Deputies of Argentina · Javier Milei · Senate of Argentina

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