biofuel production: considerations from brazil a presentation by sarina kilham

8/14/2019 Biofuel Production: Considerations from Brazil a presentation by Sarina Kilham

1/15

Biofuel Production:considerations from Brazil

THINK.CHANGE.DO

INSTITUTE FOR SUSTAINABLE FUTURES


2/15

appropriate time to

reflect on the global

scene for biofuels

Timor-Leste may

soon need to

confront issuesassociated with

biofuel

production

Biofuels- transforming Timor-Leste?

Photo: Road in Covalima District (Sarina Kilham)


3/15

Biofuel Overview

Biofuels:liquid or gaseous fuels derivedfrom organic matter such as plant materialor animal waste.

Also known as agrofuels, reflecting thecurrent situation where the majority ofbiofuel is produced from agricultural

commodities


4/15

Ethanol and biodieselEthanol

liquid fuel generated fromconverting biomass into sugarand then fermenting the sugar

Common feedstock is sugarcane or corn

Most widely used and tradedinternationally

USA and Brazil biggestproducers and consumers

Biodiesel

biodiesel is produced fromorganically-derived oils or fats

Common feedstock is soybean, palm oil, jatropha

Limited international trade

Indonesia and Malaysiabiggest producers, EU biggestconsumer


5/15

World Biofuel consumption projection

International Energy Agency World Energy Outlook 2008p172


6/15

Brazil

191 million

people

Producing

since 1970s

Biggest

consumer

until 2004

Photo Source: http://news.mongabay.com/bioenergy/


7/15

1975- PROALCOOL - Promoted production and

domestic consumption of ethanol by policy measures

Quotas

subsidies to bioethanol producers

fixed purchasing price

government control

distribution by monopolistic agent (Petrobras)

installation of bioethanol bowsers at everyPetrobras Fuel Station

tax incentives for car owners

soft loans


8/15

PROALCOOL in 2009

Liberalised but policy measures remain(e.g. Mandated 20-25% mix, FFV)

Industry is thriving and Brazilian remains

the worlds largest exporter

BUT development and benefits have

not been uniform across the nation


9/15

2005-PROBIODIESEL

Small farmers positiveenvironmental

impact

Regional

development

Images from Biofuel Watch Center and Government of Brazil


10/15

PROBIODIESELSocial Fuel Stamp

Aims to promote social inclusion. Producers receive stamp when they

meet minimum social inclusion criteria. Industrial producer must:

purchase a minimum percentage of feedstock from family farmerslocated at different geographical points in Brazil

enter into a legally binding agreement with family farmers to

establish specific income levels and deadlines and conditions ofdelivery of feedstock

guarantee technical assistance and training


11/15

Challenges

Costs for the technical assistance are oftenhigher than Social Fuel Stamp tax exemptions

operational costs of managing thousands ofcontracts with geographically dispersed small

farmers was difficult.

Research is showing patterns of biodieselproduction and processing are similar to that ofethanol, despite policy measures


12/15

Global Policy context

The biggest producers and users of biofuels at a globallevel are interested in quite different aspects of biofuels

(e.g. Some for climate change mitigation, some forpolitical influence)

multilateral rules that govern biofuels are neither unified

nor consistent- bioethanol and biodiesel are classifieddifferently under World Trade Organisation rules

Ethanol and biodiesel are subject to very different

permitted tariff and subsidy rules (more refined = higher tariff).


13/15

Governance of Biofuel is complex...

In Brazil, at least 6 of 24 government Ministriesinvolved:

Ministry of Agriculture, Livestock and Supply: responsible for large-scale industrial farming and the development ofagricultural technologies

Ministry of Science & Technology: supports research in advanced agricultural technologies such as biotechnology

Ministry of Development, Industry & Trade: export development

Ministry of Mines and Energy: supports the development of biofuels

Ministry of Agrarian Development: responsible for small scale, family and subsistence farming and social inclusionissues.

Ministry of Social Development & the Fight against Hunger: has a poverty reduction mandate

Policy in Timor will also involve several Ministries


14/15

the road ahead for Timor..

Demand: big BUT the global context is changing

Timor-Leste would be price-taker

Benefits: possible benefits for rural developmentif focused on local consumption; needsto be part of a diverse farming system

Policy: social + environmental + economicSpecific measures to address equity.

Government needs to be involved


15/15

Thank You

Sarina Kilham

Institute for Sustainable Futureswww.isf.uts.edu.au

[email protected]

Skype: sarinakilhamTlp: 745 9909
mailto:[email protected]:[email protected]

biofuel production: considerations from brazil a presentation by sarina kilham

Documents