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Sustainability issues of bioethanol from Brazil
October 18, 2006 – Amsterdam
Lúcia OrtizDelcio Rodrigues
Friends of the Earth Brazill Vitae Civilis Institute members of the EnergyWorking Group of the
The role of developing countries in the global market
The global market is seen as an opportunity for developing countries to grow their economies.
“considering that agriculture cheap raw materials will be produced in undeveloped countries, the production of these feedstocks for the biofuels industry will contribute to the reduction of poverty and hungry and will help to the development of the agriculture and this would be the best for all these countries, independent if the environmental aspects are or not satisfactory for our levels.”
EU based companies - Sener Grupo de Ingeneria, to theEU biofuels directive consultation 2006
source: Biofuelswatch report, 2006
While the production of agro-forestry commodities in monoculture regimes provides goods of low aggregated value to the international market, the aggregated export of natural resources - such as water, energy, nutrients, biodiversity and land use - leaves several social and environmental impacts and exacerbates land use conflicts in developing countries.
The role of developing countries in the global market
Will biofuels be different?
Export led monocultures in Brazil
Impacts of monocultures in Brazil
illegal deforestation in order to make place for new plantations;expulsion of small farmers from their land;land ownership concentration;intensive use of agrochemicals,
threatening the health of farmers and the population of nearby areas;
contamination of soil, rivers, ground and spring waters;
rural and urban poverty - besides the expulsion of small farmers from their lands, monoculture hardly creates jobs.
Current production and expected growth – sugar cane for ethanol
IBGE 2005
Limits for global demands for ethanolarea required in the short term
EU biofuels directive5.75% of transport fuel by 2010 = Up to 10 billion liters/year
Japan5% of gasoline substitution by 2010 = 1,8 billion liters/year
United StatesImports of additional14 billion liters/year by 2010
This would require the production of additional 26 billion liters of ethanol what would represent additional 3,6 million hectares (almost as big as the Netherlands) to produce exclusively ethanol for export, considering no additional sugar will be demanded and excluding the growing internal demand by flex fuel cars.
The Brazilian sugar cane industry
The lowest cost of production in the worldCurrent production: 388 M tons/year
– 40% ethanol (16 B liters/year)20-25% mixture anhydrous ethanol in gasolinefor ethanol in alcohol and flex fuel vehicles2,5 B for export
– 50% sugar (22 M tons/year)– 10% others
100% private sector (national companies, recently international corp.)
More than 330 mills (sourrounded by +/- 100km of cane plantations)
More than 1 M direct jobs2.35% GDP
Sugar cane cultivated and expansion areas
AmazonForest
AtlanticForest
Cerrado
Caatinga
Pantanal
Pampa
Implementation of criteria for globatrade of sugar cane ethanol from Brazil
Possibilities
Challenges
Limitations
Other steps and strategies for sustainability
Environmental issues
Biodiversity
Compliance with the forest code (at least 20% legal reserve + permanent preserved areas)
No direct relation to conversion of new natural areas
Water andagrochemicals
Intensive use of agrochemicals and waste water (vinhasse)disposal
forcontrolled and efficient water reuse for fertirrigation
Air pollution
80% plantationsburnedbeforeharvesting
end of theuse of firepostponed to 2031 in SaoPaulo state(Law 11.241)
The sugar cane fields burns are a public health problem:
the annual mean PM10 concentration in PiracicabaIs equivalent to the one of Sao Paulo capital
The risk of children and elderly people check ins in hospitals because of respiratory diseases increases 12% on the harvest period
Cancado et al., Environ HealthPerspect 114:725-729, 2006
Greenhouse gas balance
Source
Table: WWI, 2006
Findings: Langer, 2006
(considering transportation to Europe in the life cycle analysis, the rate can fall to 5-6)
Social issues
Work conditions
Forced, slave and child labor 16 deaths by excess of work load in 2005 and 2006 harvests
forILO, Brazilian laws, better work and living conditions for workers
Work conditions
Migrant and seasonal laborMinimum wage x payment by productionGender issuesLiving conditions
Rede Social
Mechanization x rural unemployment
More than a half of million jobs at thesector are temporary at manual harvesting
Rural workers demand land reform, not more qualification to be rural employees at plantations
Land use, energy and local food security
Land use, energy and local food security
Local demandsFlexible land marketNo Land Use Planning Migration of local farmersEffects on local food markets
Challenges
HOW TO?faster transition from manual harvesting with the use of fire for mechanization together with land reform and rural social inclusion?guarantee local markets prior to export? guarantee food security locally?avoid the leakage affect into new natural areas? have social control over compliance and effectiveness of sustainability criteria?
The way ethanol is traded on the global market
Bilateral contractsAs a commodity
25/09/2006 - Rodrigues will run and investment company on agro-energyThe ex-Ministry of Agriculture has plans to open a private equity company on agroenergybusiness in Brazil.[…] He will be leading a company for investments on the production of bioenergy in the country, as alcohol distilleries and biodiesel plants. http://www.zoonews.com.br/noticiax.php?idnoticia=91469
“Our interest is that many countries produce and consume ethanol and biodiesel as fuels. We want the commoditization of these products.”Roberto Rodrigues, ex Ministry of Agriculture in Brazil
Limits
Control land use change and impacts on local food securityPrevent land concentrationReduce land conflicts and expulsion of family farmers and traditional populations from their landsAchieve maximum efficiency in GHG reductions by prioritizing local resources use on an integrated perspective for local sustainable development (once the criteria are mean for international trade) Change the unfair and unsustainable monoculture regimes of production into a sustainable diversified model
Other steps from the defensive agenda to a positive one
GLOBAL POLICIES FORconsumption reduction and energy efficiency in industrialized countries and priority for bioenergy use in producing countriesfaster transition for the bioenergy second generation technologies to reduce land use and to be appropriated for local ownership
NATIONAL AND REGIONAL POLICIESpriority to local markets and to social inclusion on the productive chains of bioenergy (ex. Social Label - Brazilian BiodieselProgram)
NATIONAL AND GLOBAL POLICIES AND FINACINGsupport and replicate decentralized good projects that promote bioenergy as a strategy for local development (integral sustainability with diversified function of land)
Role of international stakeholders
Reduce consumption, press for policies on energy efficiency in all levelsSupport energy projects for local developmentRaise awareness on governments and consumers in industrialized countriesEnhance capacity and technology transfer for land use planningEmpowering and supporting civil society in developing countries
Contacts
Lúcia OrtizFoE Brazil General [email protected]
Fórum Brasileiro de ONGs e Movimentos Sociais para o MeioAmbiente e o Desenvolvimento - FBOMSwww.fboms.org.br
To download GTEnergia / FBOMS documents:www.fboms.org.br/gtenergia/energia_doc.htm
Thanks to Francisco Alves and Cancado for the pictures in this presentation
