This report studies the situation of biofuels in Brazil. Some of the conclussions arrising from the article are: first the development of first generation ethanol implementation has not provided stimulus to spur cellulosic or advanced biofuel legislation and developement. Second, if cellulosic or advanced biofuels are to be developed to large scale and play an important role in the future fuel transport mix, Brazil should be taking more steps into the promotion of such fuels, helping to diversity the feedstock sources as it currently does with sugarcane in first generation.