Chambers of the sector strongly criticised the Bioenergy League, considering that it not only does not promote deregulation or consensus, but also harms SMEs and concentrates production in a few provinces.
CEPREB argues that this measure favours large companies that export, harming SMEs that have specifically invested in the national market.
The Chamber of Regional SME Biofuel Processing Companies (CEPREB) expressed its rejection of the proposed reform of Law 27,640 on biofuels, presented by the “Bioenergetic League“, an alliance made up of the provinces of Santa Fe, Cordoba, Tucuman, Salta and Jujuy.
CEPREBwhich brings together biofuel producers from Buenos Aires, Entre Rios, La Pampa and San Luisargues that the Bioenergetic League project does not promote deregulation as is arguedbut increases restrictions with even more complex regulations. They also claim that the initiative lacks consensus and encourages unfair competition, harming SMEs in the sector.
The Bioenergy League is seeking to modify the current regulatory framework to increase the percentage of bioethanol in fuels to 15%, and includes an initial quota for bioethanol from sugar caneIn the case of biodiesel, it would allow the entry of large oil companies to the domestic marketcurrently reserved for SMEs.
The argument of CEPREB
CEPREB argues that this measure favours large companies that export, harming SMEs that have invested specifically in the national market. In addition, they criticise that it does notor new investments have been generated and there is 75% idle capacity in biodiesel production in Argentinawhich limits opportunities for the development of the sector.
A key aspect that CEPREB highlights is that the project would create an unfair advantage for companies located in strategic areas, such as those close to the port of Rosario, due to lower logistics costs, which puts SMEs in provinces such as San Luis, Buenos Aires, La Pampa and Entre Ríos at a disadvantage.
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According to the camera, This could lead to the bankruptcy of many small and medium-sized businesses.while production would be concentrated mainly in Santa Fe, which could increase its share in biodiesel production from 30% to 80%.
Finally, CEPREB asks Congress not to move forward with this project, urging that a debate be promoted that favours the development of SMEs and the industrialisation of biomass, without compromising legal security or harming those who have decided to invest in the country under the current regulatory framework, which is valid until 2030.
Source: Ambito
