Law for the Production and Consumption of Biofuels (Decree No. 144-2007) (08)

This law declares the production and use of biofuels a matter of national interest in Honduras to create jobs, reduce oil dependency, and protect the environment. It grants 12-year tax exemptions to biofuel production projects and establishes that the government will regulate their production, blending, and commercialization.

Whereas Honduras, being absolutely dependent on petroleum imports, is gravely impacted by fluctuations and high prices thereof, it is considered a national priority of high importance to increase energy self-sufficiency and contribute to the reduction of environmental contamination, both local and global, by seeking alternative energy sources, since sustainable production of biocombustibles is an effective alternative to achieve energy independence.

Whereas the sustainable production of biocombustibles is adequately framed within compliance with national environmental laws and international treaties related to sustainable development and environmental conservation, of which Honduras is a signatory, providing the agribusiness industry the opportunity to be the future source of inputs for the production of ecological fuels from renewable resources and simultaneously meeting the growing global demand referred to the protection of the environment, one of whose central elements is to reduce greenhouse gas emissions, and whereas the production of biomasses for biocombustibles contributes to the achievement of the Millennium Development Goals regarding poverty reduction, opening the possibility of creating thousands of permanent jobs in agricultural areas currently abandoned, and whereas agro-industrial production is an integral part of the national economy and it is therefore necessary to coordinate an effort of all sectors involved.