AbstractBioethanol production in Brazil gained momentum in the 1970s and 1980s as an energy security and energy sufficiency measure due to the well‐known world oil crisis. However, the increase in bioethanol production and consumption in the past couple of decades has been backed by the country's efforts and measures to reduce greenhouse gas (GHG) emissions in the transport sector. Brazil is the second largest producer of biofuels, and its production continues to increase because of the commitments made in the Paris Agreement in 2015. This study reviews several key policies designed to develop Brazilian bioethanol production and to protect the environment. It is argued that many of these policies do not consider land use change or encourage land protection to achieve sustainable land use and agricultural production. Thus, this work aims to understand the importance and impacts of public policies in expanding sugarcane in Brazil in the past 34 years, with regard to land use and native vegetation. The discussion in this paper addresses the inadequacy of current policies to avoid direct and indirect land use change caused by sugarcane expansion, despite incentives such as 17 Sustainable Development Goals from the United Nations and certification schemes. The data presented indicate an indirect effect caused by the expansion of sugarcane over pasture areas, which leads to further clearing of natural vegetation to establish new pasture areas. Ultimately, this study addresses the importance of zero deforestation in Brazil, regardless of the crop that causes the conversion. Without conjoint efforts by all sectors of the economy to curtail deforestation, the sustainability of producing biofuels is not guaranteed, as the emissions caused by deforestation will not be offset by the lower GHG emissions obtained by using ethanol as a transport fuel. © 2021 Society of Chemical Industry and John Wiley & Sons, Ltd