Biofuels policy: Some insights from Brazil

Similar documents
OVERVIEW & OUTLOOK: BRAZILIAN SUGARCANE INDUSTRY

October 16, UNICA s Comments on Brazilian Sugarcane Ethanol Availability for the LCFS.

Enhancing International Cooperation on Biomass

The Sugarcane Industry : a sustainable source of renewable energy 30 JULY 2012

GLOBAL BIOFUELS OUTLOOK MAELLE SOARES PINTO DIRECTOR BIOFUELS EUROPE & AFRICA WORLD BIOFUELS MARKETS, ROTTERDAM MARCH 23, 2011

Biofuels: Demand. Ethanol and Biodiesel

BIOFUELS. Market situation. Projection highlights

How to reposition the energy sector s role in economic development, through innovation policies

Regulatory Role of ANTAQ. Transportation) and Brazilian foreign trade. Tiago Lima Director of ANTAQ

AGRICULTURE FOR FOOD AND FOR BIOENEGY: IS IT POSSIBLE?

Natural Gas and Transportation Fuels

Alternative and Renewable Energy. Christopher Nicholson section: AD Last 4 # of SIN: 5001

Biofuel Status and Policy. 18 th September 2015

Introduction to Biofuel

Biorefineries and Biomass: Options for the Chemical Industry

EU renewable energy and biofuel targets what will they mean?

Renewable energy in transport

Sweden. Biofuels Annual. Clearance Office: All - FAS. Date: 6/24/2009 GAIN Report Number: SW9008

INTRODUCTION TO THE ETHANOL SUPPLEMENT

From Biomass. NREL Leads the Way. to Biofuels

Ethanol Sugar Bioelectricity

Energy Access in Brazil

OVERVIEW OF BRAZIL BIOFUEL BUSINESS

Massachusetts $ Savings and Job Gains from Energy Efficiency in Buildings & Transportation

Brazil. Economic upswing and sustainable energy development. Marcelo Khaled Poppe

DEVELOPMENT AND STATUS OF THE USE OF AGRICULTURAL RESIDUES FOR ENERGY IN DENMARK HISTORY AND POLICY DRIVERS

FAPESP Bioenergy Research Program BIOEN.

Geneva, March 2009 COUNTRY REPORT: MALAWI

Building a Sustainable Biofuels Business: an Overview of the Market and BP Biofuels

Indicators for Sustainable Energy Development in Brazil

BIODIESEL THE NEW FUEL FROM BRAZIL NATIONAL BIODIESEL PRODUCTION & USE PROGRAM

Policy Options for Integrated Energy and Agricultural Markets and Global Biofuels Impacts

OECD-FAO Agricultural Outlook 2012 OECD/FAO Chapter 3. Biofuels

Liquid Biofuels for Transport

Fuel Ethanol in Europe Outlook in the light of policy uncertainty. LMC International, Oxford, UK Platts Biofuels Conference, June

Smart Cities and Sustainable Technology

California Energy Commission California Perspective on Biofuels and Energy

GG102 Unit 2. Energy Lecture 4. Hydropower and Biofuels

Present Situation of Ethanol Use in Brazil

Transport Sector in India

Woody Biomass Supply and Demand 1

Bio renewable Resources Platform. Ton Runneboom, Chairman

Chapter 13 Quiz. Multiple Choice Identify the choice that best completes the statement or answers the question.

Global Biofuels Outlook to Alternative Aviation Fuel In Asia Singapore February 15-16, 2012

MINNESOTA CLEAN ENERGY ECONOMY PROFILE. How Industry Sectors are Advancing Economic Growth

World Fuel Ethanol. Analysis and Outlook. Prepared for METI. Dr. Christoph Berg, F.O. Licht

Alternative Energy Development Plan (AEDP) 2015

310 Exam Questions. 1) Discuss the energy efficiency, and why increasing efficiency does not lower the amount of total energy consumed.

Scientific Research in Renewable Energy in Brazil

OUTLOOK FOR NATURAL GAS IN EUROPE

Benchmarking of Biodiesel Fuel Standardization in East Asia Working Group

Alternative energy and new technology for heavy-duty vehicles, Advanced bus technologies and alternative fuels

Fig A 9 Environmental, social and economic aspect from biofuels production Source: IEA (2011)(International Energy Agency, 2011)

Energy in Ireland. Key Statistics 2014

Uusiutuvat polttoaineet jäte- ja tähdevirroista. Teknologiajohtaja Lars Peter Lindfors, Neste Oil

Forward. Contents. Bioenergy Development Plan

Sustainable production of biogas and bioethanol from waste

Low-Carbon Development for Mexico (MEDEC)

Energy Offices Meeting

Latin America and COP20

ENVIRONMENTAL PERFORMANCE REVIEW OF BRAZIL. Main findings and recommendations

Low temperatures provide a poor increase in energy consumption. Decreasing economy lessens energy demand / Renewables continue to grow

Danish Energy Model RE Policy Tools MAIN Asian Dialog, Bali January Mr. Henrik Breum Special Advisor

The future is our most important market Refining with a sustainable vision. Sören Eriksson

Innovative technology solutions for sustainable development Abengoa in the USA

BIOENERGY IN GERMANY: STATUS QUO AND OUTLOOK

1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS

Keisuke Sadamori Director, Energy Markets and Security International Energy Agency Kuala Lumpur, 8 October

Local production of bioethanol to meet the growing demands of a regional transport system

Comparison between Cotton oil and Sunflower oil fuel mixtures

Pocket Guide to ETHANOL 2015

Governor s Executive Order, Dept. of Ecology, Air Quality Program Bob Saunders

First BTL pre-industrial demonstrator with external hydrogen input SYNDIESE project at Bure-Saudron

The importance of energy balances to estimate greenhouse gas emissions

The European Renewable Energy Directive and international Trade. Laurent Javaudin Delegation of the European Commission to the U.S.

Brazil s Developing Automotive Fuel Economy Policy 1.1 Background

BRAZIL Social-Biodiversity

The sunliquid process - cellulosic ethanol from agricultural residues. Dr. Markus Rarbach Group Biotechnology Biofuels & Derivatives

Report of the technical assessment of the proposed forest reference emission level of Brazil submitted in 2014

TWO NEW MUST-HAVE RESEARCH REPORTS ON THE RENEWABLE ENERGY SECTOR

CERTIFICATION ON SUSTAINABILITY IN THE BIOFUEL SECTOR: a case study on Brazilian ethanol

Is it possible to avoid bad impacts by using good fuel ethanol?

Innovadidattica, Leggere e scrivere l'ambiente

Myths and Realities about Wind, Water, and Sun (WWS) Versus Current Fuels Mark Z. Jacobson September 26, 2012

Energy Projections Price and Policy Considerations. Dr. Randy Hudson Oak Ridge National Laboratory

The facts on biodiesel and bioethanol

U.S. and Brazil Bilateral Collaboration on Biofuels

Renewable diesel from tall oil

A REScoop manifesto. REScoop policy priorities for the European Parliament elections 2014

Renewable Energies: Opportunities for Mexico

Introduction to our Business in Valmet. Marita Niemelä VP, Strategy Pulp & Energy 20 August 2014

Analysis of the EU Renewable Directive by a TIMES-Norway

Measuring the Effects of Ethanol and Flex-Fuel Vehicles on Brazilian Gasoline Supply & Demand

POLICY ACTIONS INVESTING IN INNOVATION

Nomura Conference. Biomass: the 4 th Energy Source. June February 2011

Critical Policy Options to Protect Industry Competitiveness

Energy Megatrends 2020

How To Model Biomass

2/23/2011. Our Multi-Client Services. Global Biofuels Center. Presentation Overview

Brazil and Biofuels for Autos: A Model for Other Nations

Transcription:

A Global Perspective on the EU Biofuel Subsidies Reform Biofuels policy: Some insights from Brazil Géraldine Kutas Senior Advisor to the President for International Affairs Head of International Affairs Brazilian Sugarcane Industry Association (UNICA) The European Parliament, 4 December 2012

THE BRAZILIAN ETHANOL POLICY Proálcool Program started in 1975 with a clear objective: Increase energy security by reducing oil imports Established an E-5 mandate and encouraged the development and demand of pure ethanol-fueled cars (E-100) Implemented measures to increase sugar production and exports Brazil has successfully transitioned from importing almost 80% of its total oil consumption in the 1970s to becoming a key player in energy and a renewable energy leader. Current Brazilian ethanol policy: Flexibility Government intervention:18-25% mandatory blend. The mandate has been reduced 4 times over the decade. Ethanol in the mandate averaged 35% of total fuel ethanol consumption in the last 5 years. Consumer-driven market: pure ethanol used in Flex Fuel vehicles (FFVs). 65% of fuel ethanol consumption. Provides adjustment flexibility in case of market tensions as consumers can use indifferently gasoline or ethanol in their car. No import tariff Allows supply from abroad, at no extra-cost, when necessary

THE BRAZILIAN SUGARCANE INDUSTRY Brazil became the world leading exporter of sugar (50% market share) while it expanded its ethanol production and consumption Flexible food and fuel production 75% of the mills produce sugar and ethanol All of them have the flexibility to re-direct 10% of their production to one or the other product 10% of the ethanol produced in these units is made of molasses, a residue of the sugar industry that has no market for other uses in Brazil Strong investment in R&D, including in agronomy Since 2003, annual world sugar consumption increased by 2.4% on average 1. Over the same period, Brazilian sugar production grew by almost 5% per year. Sugar is not a staple food. Brazilian grains production has more than doubled over the last decade.

BRAZILIAN ENERGY MATRIX INPUT 47.3% 45.5% 44.1% Natural Gas 10.1% Wood and Other Biomass 9.7% Other Coal and Renewables Derivatives 4.1% 5.6% Hydro 14.7% Uranium 1.5% Petroleum and Derivatives 38.6% Sugarcane 15.7% 52.7% 54.5% 55.9% 2009 2010 2011 Non-renewable Renewable WORLD (%) 12.9 7.6 #1 Source of Renewable Energy in BR 87.1 92.4 World (2008) OCDE (2009) Non-renewable Renewable Source: Balanço Energético Nacional BEN (2011) and International Energy Agency. Key World Statistics 2010. Elaboration: UNICA

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Thousands km 2 /year Cane area (Million hectares) SUGARCANE AREA AND ANNUAL DEFORESTATION RATE IN THE LEGAL AMAZON 40 35 30 25 20 Empirical data shows no correlation between ethanol expansion and deforestation. - 83% 10 9 8 7 6 5 15 10 5 4 3 2 1 0 0 Amazon: deforestation rate Sugarcane Area Sources: Prepared by UNICA. INPE / PRODES (deforestation rates) and IBGE and UNICA (sugarcane area).

SUGARCANE AGROECOLOGICAL ZONING IN BRAZIL 1. It excludes sugarcane expansion in the most sensitive biomes e.g. Amazonia and Pantanal. 2. It excludes sugarcane expansion on any type of native vegetation (Cerrados, Campos, etc.) 3. Authorized areas for sugarcane expansion: 64.7 ml hectares, equivalent to 7.5% of the Brazilian territory (Currently 1% of the area is used for sugarcane)

SUGARCANE PRODUCTS: STEP BY STEP Current technology Sugar Drop-in fuels (diesel, jet fuel, gasoline) Technology under development Cane stalks Cane juice (Sucrose) Detergents & solvents Ethanol Cosmetics Sugarcane Bagasse (Cellulose) Biopolymers (bioplastics, isoprene, etc) Lubricants Straw (Tops and Leaves) (Cellulose) Bioelectricity Flavors and Fragrances Food

CONCLUDING REMARKS Transportation is the GHG emissions fastest growing sector and solutions are URGENTLY needed to tackle them. There is no magic solution and trade-offs between resource uses are necessary. Renewable energy needs public support: According to the IEA, fossil fuels received U$ 523 bn in 2011 (+ 27% compared to 2010) Fossil fuels prices don t reflect their negative environmental externalities Market conditions are imperfect due to the market power held by fuels producer/distributors Fair and stable legislation that reward each type of biofuels according to their environmental merits + open market are essential for sustainable biofuels to develop as a viable option in the pool of transport fuels. Excess of prudence regarding all biofuels will simply promote an increase in fossil fuels consumption and therefore more GHG emissions.

VISIT SUGARCANE.ORG

Thank you! www.unica.com.br www.sugarcane.org