Reumo
Renewable fuels are important drivers of innovation systems towards sustainability, the basic foundations for the development of a low-carbon economy. There is a noticeable delay in the diffusion and adoption of eco-innovations in the transportation sector (heavy-duty buses and trucks) in Brazil. Clean technologies based on renewable fuels have been developed, disseminated and are available for decades. However, their adoption is slow and depends on government actions to impose restrictive standards and provide a set of market incentives to economically enable these eco-innovations, such as subsidies to the operations and supply of biofuels at competitive prices. The main purpose of this study is to analyze the process of development and diffusion of eco-innovation projects and understand the influence of public policies in the transportation sector in Brazil. The method used was the case study. The main determinants of the company’s eco-innovation projects are related to market demand, public policies, technological changes and the company-specific factors such as technological, innovation and investment capacity. The government influence was identified as one of the main drivers of eco-innovation and, at the same time, the main barrier in the adoption of eco-innovation at Scania due to the current Brazilian subsidy policy to oil byproducts, which makes the renewable fuels more expensive, and the lack of subsidized credit facilities for sustainable products in this sector. These factors lead to the lack of market demand.