Productive inclusion of smallholders in the Brazilian biodiesel value chain: a path of challenges and opportunities

This doctoral dissertation delves into the complex challenge of smallholder productive inclusion within the biodiesel value chain in Brazil. The focus is on the National Policy for Biodiesel Production and Use (PNPB) and its instrument to promote smallholder inclusion: the Social Biofuel Seal (SBS). Productive inclusion of smallholders in value chains can be a strategy for poverty alleviation and resilient and inclusive development. However, the concept of productive inclusion is not clearly defined in the literature, and it is not yet a priority in most policies aimed at the transition to a bioeconomy. One of the outputs of this thesis is to define the concept in a way that suits the discussions regarding inclusive biobased value chains.
The research poses the question of "how can governance enhance smallholder inclusion in biobased value chains in Brazil, emphasizing the promotion of stable employment, income generation, and fair economic risk distribution among stakeholders?".
The experience of PNPB illustrates that managing the tension between immediate needs and long-term goals is a significant challenge. Although PNPB and SBS have made strides in promoting inclusive biobased value chains, achieving the anticipated results is complicated due to the complexity of productive inclusion, the Brazilian context, and the policies themselves. The study underscores the importance of addressing both technological advancement and economic viability, as well as the impacts on local communities, social structures, and cultural dynamics, to prevent adverse outcomes like exclusion. It also highlights the need to confront historical injustices and power imbalances to achieve smallholder productive inclusion. State capability development is crucial for supporting smallholder productive inclusion goals. PNPB's experience showcases the importance of institutional, political, regulatory, and coordination capabilities. The study argues for adaptive and participative governance arrangements to progress the energy transition while prioritizing inclusion as a long-term goal.