Géraldine Kutas Senior Advisor to the President for International Affairs (UNICA)

1. Bold Actions for Stimulating Inclusive Growth An international dialogue organized by IFPRI and hosted by EMBRAPA Session 4—Climate Change, Biofuel and Natural Resources Biofuels: What the World Can Learn from Brazil GéraldineKutas Senior Advisor to the President for International Affairs (UNICA) Brasilia June 2, 2010

2. BRAZILIAN ENERGY MATRIX INPUT (2009) Energy Supply Structure Source: BEN (2010). Elaboration: UNICA

3. KEY NUMBERS OF BRAZILIAN SUGARCANE SECTOR 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 Elaboration: UNICA. Note: data refers to the 2009/10 crop year

4. EXPANSION OF ETHANOL DEMAND IN BRAZIL Flex-fuel cars already represent almost 40% of the total Brazilian fleet (Otto-cycle) Domestic ethanol sales E-100 Accumulated sales of flex-fuel vehicles Jan, 2003 Feb, 2010 Source: ANP e ANFAVEA. Elaboration: UNICA

5. GASOLINE x ETHANOL CONSUMPTION IN BRAZIL Million liters Gasoline Ethanol Mar, 2010 Jan, 2000 Source: ANP. Elaboration: UNICA.

6. ETHANOL USE: NOT LIMITED TO CARS Ethanol-powered buses (E95) - still a pilot project in Brazil Flex-fuel motorcycles Brazilian-made crop dusting planes running on ethanol Biobutanol Production of diesel from sugarcane at commercial scale by 2010 Production of bioplastics

7. BREAKDOWN OF SUGARCANE’S ENERGY Energy equivalent of 1 ton of sugarcane = 1.2 oil barrel Alcochemical Bio-plastic Source: UNICA

8. 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.

9. SUGARCANE PRODUCTION IN BRAZIL Sugarcane for ethanol production occupies 1.5% of Brazil´s arable land 87% of sugarcane production 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

12. SUGAR AND ETHANOL PRODUCTIVITY IN BRAZIL While sugarcane area has increased by 85% since 90/91, ethanol and sugar production has increased by 130% and 350% respectively Sugar production (thousand tonnes) Ethanol production (million litres) Sugarcane harvested area (thousand hectares) Source: IBGE (2007) and UNICA. Prepared by: UNICA. Note: 08/09 - forecast

13. EVOLUTION OF GRAINS PRODUCTIVITY IN BRAZIL Food production has doubled in the last decade, mainly due to productivity gains Grains production (thousand tonnes) Grains harvested area (thousand hectares) Source: IBGE (2007). Note: 2008 – forecast“Grãos” abrange arroz, milho, trigo, soja e feijão.

15. 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.

17. WORLD SUGARCANE MAP Ethanol production in 100 countries would also enhance energy security by reducing world reliance on only 20 oil producing countries. Source: British Sugar

18. MAIN CONCLUSIONS Brazilian agriculture has an enormous potential in contributing with GHG emissions reductions; the biofuels sector is an example. However it is necessary to create the right incentives; Climate Change negotiations should provide an enabling environment for long term planning and investments 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). 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.

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