An agreement designed to eliminate the use of native forest wood in Brazil’s corn ethanol plants has been suspended in Mato Grosso, delaying rules that would have phased out the fuel by 2035. Governor Otaviano Pivetta postponed a decree implementing the June agreement with the state prosecutor’s office. The pause has raised uncertainty for eucalyptus plantation investments, which industry advocates describe as a more renewable biomass source but one requiring long-term capital and regulatory certainty. Arefloresta president Fausto Takizawa said the situation had become a warning for prospective forest investors. Mato Grosso has 14 corn ethanol plants and plans more than 10 additional facilities. Arefloresta estimates that 10 billion reais ($1.94 billion) would be needed to supply existing and planned projects with eucalyptus and other renewable biomass, potentially increasing the state’s eucalyptus area to 400,000 hectares by 2030 from about 165,000 hectares. The state government has also sought a legal review of a proposal allowing large consumers to cover up to 5% of their energy demand with native wood.