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Géraldine Kutas Senior Advisor to the President for International Affairs (UNICA)
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BrasiliaJune 2, 2010
Biofuels:
What the World Can Learn from Brazil
Géraldine KutasSenior Advisor to the President for International Affairs (UNICA)
Bold Actions for Stimulating Inclusive GrowthAn international dialogue organized by IFPRI and hosted by EMBRAPA
Session 4—Climate Change, Biofuel and Natural Resources
Petroleum and derivatives
37,9%
Sugarcane18,1%
Hydroelectricity15,2%
Wood and other biomass
10,1%
Natural Gas8,8%
Coal4,8%
Other renewable sources
3,8% Uranium1,4%
BRAZILIAN ENERGY MATRIX INPUT (2009)
Source: BEN (2010). Elaboration: UNICA
Energy Supply Structure
Annual gross earnings US$ 23 billion (08/09)
Foreign revenue US$ 9.8 billion (2009)
Direct investments > US$ 20 bln (2006-2009)
Composition 438 plants nationwide (2010)
Sugarcane growers 70,000
People directly employed 845,000
Share in Brazilian energy matrix 16.4%, ahead of hydroelectricity
Avoided CO2 emissions > 600 mln tons since 1975
KEY NUMBERS OF BRAZILIAN SUGARCANE SECTOR
Elaboration: UNICA. Note: data refers to the 2009/10 crop year
EXPANSION OF ETHANOL DEMAND IN BRAZIL
Flex-fuel cars already represent almost 40% of the total Brazilian fleet (Otto-cycle)
Jan, 2003 Feb, 2010
Accumulated sales of flex-fuel vehicles
Domestic ethanol s
ales
E-100
Source: ANP e ANFAVEA. Elaboration: UNICA
0
400
800
1.200
1.600
2.000
2.400
Gasoline
Ethanol
Mill
ion
liter
s
Jan, 2000 Mar, 2010
GASOLINE x ETHANOL CONSUMPTION IN BRAZIL
Source: ANP. Elaboration: UNICA.
Brazilian-made crop dusting planes running
on ethanol
Ethanol-powered buses (E95) - still a
pilot project in Brazil
Flex-fuel motorcycles
Production of diesel from sugarcane at commercial
scale by 2010
ETHANOL USE: NOT LIMITED TO CARS
Biobutanol
Production of bioplastics
BREAKDOWN OF SUGARCANE’S ENERGY
Source: UNICA
AlcochemicalBio-plastic
Energy equivalent of 1 ton of sugarcane
= 1.2 oil barrel
GHG SAVINGS OF BIOFUELS COMPARED TO FOSSIL FUELS
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.
SUGARCANE PRODUCTION IN BRAZIL
Sugarcane for ethanol production occupies 1.5%
of Brazil´s arable land
87% of sugarcane production
Millions of hectares
% of Brazil
% of Arable Land
BRAZIL 851.4
TOTAL ARABLE LAND 329.9
1. Crop Land - Total 59.8 7.0% 18.1%
Soybean 21.6 2.5% 6.4%
Corn 14.4 1.7% 4.4%
Sugarcane 8.1 0.9% 2.5%
Sugarcane for ethanol 4.8 0.6% 1.5%
2. Pasture Land 158.7 18.6% 48.1%
3. Protected Areas and Native Vegetation 495.6 58.2% -
4. Available Area 137.2 16.1% -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
SUGARCANE ZONING IN BRAZIL
Fed. Government has implemented regulations that..
1. Prohibit:
• Sugarcane plantation in sensitive biomes such as the Amazon forest and Pantanal wetlands.
• Sugarcane cultivation on native vegetation (e.g., cerrado, grasslands)
2. Authorize:
• 64.7 million hectares for sugarcane expansion; equivalent to 7.5% of the Brazilian territory (currently 0.9% of the area is used for sugarcane)
f = Forecasted sugarcane area
Sources: INPE (deforestation rates) and IBGE (sugarcane area). Prepared by UNICA.
SUGARCANE AREA AND ANNUAL DEFORESTATION RATE IN THE LEGAL AMAZON
iLUC??
SUGAR AND ETHANOL PRODUCTIVITY IN BRAZIL
Source: IBGE (2007) and UNICA. Prepared by: UNICA. Note: 08/09 - forecast
90/9
1
91/9
2
92/9
3
93/9
4
94/9
5
95/9
6
96/9
7
97/9
8
98/9
9
99/0
0
00/0
1
01/0
2
02/0
3
03/0
4
04/0
5
05/0
6
06/0
7
07/0
8
08/0
90
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Are
a ('0
00 h
a);
etha
nol (
ml l
itres
); s
ugar
('0
00 t
on)
Ethanol production (million litres)
Sugar production(thousand tonnes)
Sugarcane harvested area (thousand hectares)
While sugarcane area has increased by 85% since 90/91,
ethanol and sugar production has increased by 130% and 350%
respectively
Source: IBGE (2007). Note: 2008 – forecast “Grãos” abrange arroz, milho, trigo, soja e feijão.
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
'00
0 h
a e
'00
0 to
nn
es
Grains production (thousand tonnes)
Grains harvested area (thousand hectares)
Food production has doubled in the last decade, mainly due to productivity gains
EVOLUTION OF GRAINS PRODUCTIVITY IN BRAZIL
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
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
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
Requalification Program for Sugarcane Rural Workers
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.
UNICA’s GRI Sustainability
Report
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.
Ethanol production in 100 countries would also enhance energy security by reducing world reliance on only 20 oil producing countries.
Source: British Sugar
WORLD SUGARCANE MAP
MAIN CONCLUSIONS
1. Brazilian agriculture has an enormous potential in contributing with GHG emissions reductions; the biofuels sector is an example.
2. However it is necessary to create the right incentives; Climate Change negotiations should provide an enabling environment for long term planning and investments
3. 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).
4. 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.
