Bolivia launches incentive program to boost national biodiesel production

Photo: The Bolivian Ministry of Hydrocarbons and Energy

Bolivia’s president, Luis Arce, announced Aug. 6 the launch of an innovative financial and fiscal incentive program to strengthen biodiesel production in the country.

This initiative seeks to stimulate private investment in the sector and promote environmental sustainability through a series of measures that favor new ventures and existing companies in the industry.

The program includes a zero percent tariff on the import of machinery and equipment for biodiesel plants.

This measure is in addition to the current zero value-added tax (VAT) for these inputs, which will allow private producers to access advanced technologies without the additional costs traditionally associated with the import of such equipment.

The implementation of this program also contemplates the application of advanced technology to increase the productivity of raw materials for biodiesel production.

Furthermore, investment in new ventures and the modernization of existing plants are expected to play a key role in increasing the flow of biodiesel production in the country.

The incentives are not only aimed at improving infrastructure and production capacity, but they also seek to encourage research and development of new techniques and processes that optimize production and reduce environmental impact.

The program is designed to benefit a wide range of actors in the sector, from small local producers to large companies, and is expected to significantly contribute to the reduction of biodiesel imports, thus promoting the country’s energy self-sufficiency.