Biofuels: What the World Can Learn from Brazil

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Géraldine Kutas
Senior Advisor to the President for International Affairs (UNICA)

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Biofuels: What the World Can Learn from Brazil

  1. 1. Bold Actions for Stimulating Inclusive Growth<br />An international dialogue organized by IFPRI and hosted by EMBRAPA<br />Session 4—Climate Change, Biofuel and Natural Resources<br />Biofuels: <br />What the World Can Learn from Brazil<br />GéraldineKutas<br />Senior Advisor to the President for International Affairs (UNICA)<br />Brasilia<br />June 2, 2010<br />
  2. 2. BRAZILIAN ENERGY MATRIX INPUT (2009)<br />Energy Supply Structure<br />Source: BEN (2010). Elaboration: UNICA<br />
  3. 3. KEY NUMBERS OF BRAZILIAN SUGARCANE SECTOR<br />Annual gross earnings US$ 23 billion (08/09)<br />Foreign revenue US$ 9.8 billion (2009)<br />Direct investments > US$ 20 bln (2006-2009)<br />Composition 438 plants nationwide (2010)<br />Sugarcane growers 70,000 <br />People directly employed 845,000<br />Share in Brazilian energy matrix 16.4%, ahead of hydroelectricity<br />Avoided CO2 emissions > 600 mln tons since 1975<br />Elaboration: UNICA. Note: data refers to the 2009/10 crop year<br />
  4. 4. EXPANSION OF ETHANOL DEMAND IN BRAZIL<br />Flex-fuel cars already represent almost 40% of the total Brazilian fleet (Otto-cycle)<br />Domestic ethanol sales E-100<br />Accumulated sales <br />of flex-fuel vehicles<br />Jan, 2003<br />Feb, 2010<br />Source: ANP e ANFAVEA. Elaboration: UNICA<br />
  5. 5. GASOLINE x ETHANOL CONSUMPTION IN BRAZIL<br />Million liters<br />Gasoline<br />Ethanol<br />Mar, 2010<br />Jan, 2000<br />Source: ANP. Elaboration: UNICA.<br />
  6. 6. ETHANOL USE: NOT LIMITED TO CARS<br />Ethanol-powered buses (E95) - still a pilot project in Brazil <br />Flex-fuel motorcycles<br />Brazilian-made crop dusting planes running on ethanol<br />Biobutanol<br />Production of diesel from sugarcane at commercial scale by 2010<br />Production of bioplastics<br />
  7. 7. BREAKDOWN OF SUGARCANE’S ENERGY<br />Energy equivalent of <br />1 ton of sugarcane <br />= 1.2 oil barrel<br />Alcochemical<br />Bio-plastic<br />Source: UNICA<br />
  8. 8. GHG SAVINGS OF BIOFUELS COMPARED TO FOSSIL FUELS<br />Source: UNEP 2009, based on data from Menichetti/Otto (2008) for bioethanol and biodiesel, IFEU (2007) for sugarcane ethanol, and Liska et al. (2009) for corn ethanol; RFA 2008 for biomethane, bioethanol from residues and FT diesel.<br />
  9. 9. SUGARCANE PRODUCTION IN BRAZIL<br />Sugarcane for ethanol production occupies 1.5% of Brazil´s arable land<br />87% of sugarcane production<br />Note: Arable Land (Censo IBGE 2006) 1) Temporary and Permanent crop land (Censo IBGE 2006); Soybean, Corn and Sugarcane values (IBGE 2008) 2) Pasture land (Censo IBGE 2006 3) Protected areas and native vegetation (Gerd Spavorek 2009, not published yet) APP = Permanent Preservation Land; UC = Conservation Units and TI = Indigenous land 4) Area available = Arable Land – Crop Land – Pasture Land . Sources: ICONE and UNICA. Prepared by UNICA. Sources (MAP): NIPE-Unicamp, IBGE and CTC<br />
  10. 10. SUGARCANE ZONING IN BRAZIL<br />Fed. Government has implemented regulations that..<br />Prohibit:<br /><ul><li>Sugarcane plantation in sensitive biomes such as the Amazon forest and Pantanal wetlands.
  11. 11. Sugarcane cultivation on native vegetation (e.g., cerrado, grasslands) </li></ul>Authorize:<br /><ul><li>64.7 millionhectares for sugarcane expansion; equivalent to 7.5% of the Brazilian territory (currently 0.9% of the area is used for sugarcane)</li></li></ul><li>SUGARCANE AREA AND ANNUAL DEFORESTATION RATE IN THE LEGAL AMAZON<br />iLUC??<br />f = Forecasted sugarcane area <br />Sources: INPE (deforestation rates) and IBGE (sugarcane area).<br />Prepared by UNICA.<br />
  12. 12. SUGAR AND ETHANOL PRODUCTIVITY IN BRAZIL<br />While sugarcane area has increased by 85% since 90/91, ethanol and sugar production has increased by 130% and 350% respectively<br />Sugar production<br />(thousand tonnes)<br />Ethanol production <br />(million litres)<br />Sugarcane harvested area (thousand hectares)<br />Source: IBGE (2007) and UNICA. Prepared by: UNICA. Note: 08/09 - forecast<br />
  13. 13. EVOLUTION OF GRAINS PRODUCTIVITY IN BRAZIL<br />Food production has doubled in the last decade, mainly due to productivity gains<br />Grains production (thousand tonnes)<br />Grains harvested area (thousand hectares)<br />Source: IBGE (2007). Note: 2008 – forecast“Grãos” abrange arroz, milho, trigo, soja e feijão.<br />
  14. 14. SOCIAL AND ENVIRONMENTAL RESPONSIBILITY<br /><ul><li>National agreement of voluntary participation and continuous improvement, which prioritize better work practices on sugarcane by creating market instruments and which recognize it as an example for other companies to adopt
  15. 15. The Green Protocol between UNICA and the São Paulo state government is a voluntary agreement to end the use of fire in sugarcane harvesting and to protect riparian areas. Currently, in the state, 55% of the cane is harvested mechanically and 25% of all the riparian areas are protected by the sector.
  16. 16. Train and requalify 7,000 workers and community members per year for jobs in sugar mills and ethanol plants and to work in other sectors, as a response to the process of mechanizing the sugarcane harvest to eliminate burning</li></ul>Requalification Program for Sugarcane Rural Workers<br /><ul><li>The first agribusiness association in the world to publish a sustainability report following the Global Reporting Initiative Framework. The 2010 one is to be published in July.</li></ul>UNICA’s GRI Sustainability Report<br />
  17. 17. WORLD SUGARCANE MAP<br />Ethanol production in 100 countries would also enhance energy security by reducing world reliance on only 20 oil producing countries.<br />Source: British Sugar<br />
  18. 18. MAIN CONCLUSIONS<br />Brazilian agriculture has an enormous potential in contributing with GHG emissions reductions; the biofuels sector is an example.<br />However it is necessary to create the right incentives; Climate Change negotiations should provide an enabling environment for long term planning and investments<br />Biofuels represent an opportunity for developing countries: land, water, sunlight, temperature, labor, potential genetic improvements (corn/wheat vs. sugarcane), incorporation of new technologies (crop rotation, agriculture-livestock integration, no-till).<br />A sharp decrease and/or elimination of tariff and non-tariff barriers from developed countries would allow real opportunities for developing countries to produce 6 Fs - Food, Feed, Fibers, Fruits, (planted) Forests and Fuel - in a much more economically, environmentally and socially sustainable way.<br />
  19. 19. Thank you<br />www.unica.com.br<br />

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