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LatinNews Daily - 11 May 2021

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In brief: Argentina extends biofuels law

* The Argentine government has issued a decree extending the national biofuels production promotion law by two months. First approved in May 2006 and due to expire this month, the law encourages the production of biofuels (mainly derived from plant waste) and the transition towards cleaner fuel use in Argentina by stipulating that petrol fuels sold at pumps must be blended with biofuels; and by introducing a series of tax benefits for domestic biofuel producers. The government led by President Alberto Fernández proposed extending the law until 2024 but with some modifications. It sent a bill to congress last month proposing to reduce the amount of biofuels that must be blended into petrol and diesel from the current 12% and 10% respectively, to 9% and 5%. The bill has been rejected by the political opposition, business organisations, and environmental groups, which complain that it will undermine investment in the biofuels sector and the efforts to encourage their use. Unable to build consensus over its bill, the Fernández administration has opted to extend the law to give itself more time to garner support for a new bill.