Law 2010-22 Regulating the Biofuels Industry

Laws and Policies

CCLW

CCLW national policies

Law passed

The Law aims to develop the biofuels sector, establishing norms and conditions for the production and exploitation of biofuels in the national territory as well as for international co-operation. More broadly, the law aims to contribute to environmental protection and increase the value of forest and agricultural resources. Overall, the law expects to increase access to energy, promoting economic growth and social welfare. The law covers all components of biofuels sector, from production to processing, storage to transport and distribution.<br>&nbsp;<br>&nbsp;It grants biofuels the fiscal benefits established under the Great Agricultural Offensive for Food and Abundance Programme. Thus, revenues generated from biofuel activities are exempted from taxation for a period of five years. The purchase of seeds and equipment for the production and export of biofuels are exempted from value added taxes for an indeterminate period of time.<br>&nbsp;<br>&nbsp;According to the new law, biofuels projects are eligible to certifications under the CDM. The ownership over these carbon credits should be negotiated between the State and the 'promoters'.