Sustainability of bioenergy in a global market the case of sugar cane ethanol from Brazil October 12, 2006 – Bonn, Germany Lúcia Ortiz Friends of the Earth Brazill GT Energia / FBOMS

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.” Sener Grupo de Ingeneria, to EU biofuels directive consultation 2006 (Biofuelswatch repot)

But while the production of agro-forestry commodities in extensive monoculture regimes provides goods of low aggregated value to the international market, the aggregated export of natural resources - such as water, energy, 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 bioenergy be different?

criteria for global trade of sugar cane ethanol from Brazil  Possibilities  Limitations  Challenges  Other steps and strategies for sustainability

Possibilities Reduction of social and environmental impacts of sugar cane production on: Biodiversity Water pollution and use Work conditions Air polution

Biodiversity Compliance with the forest code (at least 20% legal reserve + permanent preserved areas) No direct relation to conversion of new natural areas

Water Intensive use of agrochemicals and vinhace disposal for controlled and efficient water reuse for fertirrigation

Work conditions Forced, slave and child labor 16 deaths by excess of work load in 2005 and 2006 harvests for ILO, Brazilian laws, better work and living conditions for workers

Air pollution 80% plantations burned before harvesting end of the use of fire postponed to 2031 in Sao Paulo state (Law )

The sugar cane fields burns are a public health problem: the annual mean PM10 concentration in Piracicaba Is 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 Health Perspect 114: , 2006

Mechanization x rural unemployment More than a half of million jobs at the sector are temporary at manual harvesting Rural workers demand land reform, not more qualification to be rural employers at plantations

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?

Limits for global demands for ethanol area required in the short term EU biofuels directive 5.75% of transport fuel by 2010 = Up to 10 billion liters/year Japan 5% of gasoline substitution by 2010 = 1,8 billion liters/year United States Imports 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 to produce exclusively ethanol for export, considering no additional sugar will be demanded and excluding the growing internal demand by flex fuel cars

Limits INTERNATIONAL CRITERIA FOR GLOBAL TRADE CAN NOT: Control land use change and impacts on local food security Prevent land concentration Reduce land conflicts and expulsion of family farmers and traditional populations from their lands Achieve 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 model

The way ethanol is traded on the global market Bilateral contracts As a commodity 25/09/ Rodrigues will run and investment company on agro-energy The ex-Ministry of Agriculture has plans to open a private equity company on agroenergy business in Brazil.[…] He will be leading a company for investments on the production of bioenergy in the country, as alcohol distilleries and biodiesel plants. “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

Other steps from the defensive agenda to a positive one GLOBAL POLICIES FOR consumption reduction and energy efficiency in industrialized countries and priority for bioenergy use in producing countries faster transition for the bioenergy second generation technologies to reduce land use and to be appropriated for local ownership NATIONAL AND REGIONAL POLICIES priority to local markets and to social inclusion on the productive chains of bioenergy NATIONAL AND GLOBAL POLICIES AND FINACING support and replicate decentralized good projects that promote bioenergy as a strategy for local development (integral sustainability with diversified function of land)

Contacts Lúcia Ortiz FoE Brazil General Coodinator Fórum Brasileiro de ONGs e Movimentos Sociais para o Meio Ambiente e o Desenvolvimento - FBOMS Thanks to Francisco Alves and Cancado for the pictures in this presentation

Source Table: WWI, 2006 Findings: Langer, 2006