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Biofuel Production:considerations from Brazil
THINK.CHANGE.DO
INSTITUTE FOR SUSTAINABLE FUTURES
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8/14/2019 Biofuel Production: Considerations from Brazil a presentation by Sarina Kilham
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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)
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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
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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
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World Biofuel consumption projection
International Energy Agency World Energy Outlook 2008p172
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Brazil
191 million
people
Producing
since 1970s
Biggest
consumer
until 2004
Photo Source: http://news.mongabay.com/bioenergy/
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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
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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
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2005-PROBIODIESEL
Small farmers positiveenvironmental
impact
Regional
development
Images from Biofuel Watch Center and Government of Brazil
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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
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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
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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).
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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
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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
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Thank You
Sarina Kilham
Institute for Sustainable Futureswww.isf.uts.edu.au
Skype: sarinakilhamTlp: 745 9909
mailto:[email protected]:[email protected]