UN demands free trade in biofuels to tackle climate change

The landmark Human Development Report 2007/2008 which focused on the impacts of climate change on development, urges wealthy countries to open their markets for efficient biofuels made in developing countries in the subtropics and the tropics. The United Nations Development Program's (UNDP) report was officially presented in Brasília with president Luiz Inacio Lula da Silva being the host. Not coincidentally, Brazil is the leader in the use of sustainable biofuels. Lula is known for his vision which says biofuels can boost both poverty alleviation in the developing world on a massive scale, as well as providing energy security and independence from catastrophic high oil prices.

With the Human Development Report, the UNDP joins a large series of energy, climate and development experts in demanding a removal of the trade barriers imposed by the US and the EU on efficient biofuels from the South, such as Brazilian sugarcane ethanol. Organisations and institutions supporting the same call include: the UN's FAO (Food and Agriculture Organisation), the UNIDO (UN Industrial Development Organisation), the GBEP (Global Bioenergy Partnership), the OECD, the WorldWatch Institute, the International Energy Agency (IEA) and many others.

In an analysis of potential climate change mitigation options, which include bioenergy and biofuels, the authors make a case for a 'Biopact' of sorts - the win-win situation in which countries from the South utilize their comparative advantages to make carbon reducing fuels to supply the less efficient North:

International trade could play a much larger role in the expanding markets for alternative fuels. Brazil is more efficient than either the European Union or the United States in producing ethanol, Moreover, sugar-based ethanol is more efficient in cutting carbon emissions. The problem is that imports of Brazilian ethanol are restricted by high import tariffs. Removing these tariffs would generate gains not just for Brazil, but for climate change mitigation. - UNDP, Human Development Report 2007/2008

The suggestion was made based on the knowledge that such biofuels from South emit far less carbon dioxide than biofuels made in the North. The case of sugarcane ethanol is given as an example: it emits 70 to 80 percent less greenhouse gases than fossil fuels, while ethanol made from corn offers only a 10 to 20 percent reduction. Moreover, ethanol from the (sub)tropics, which can be made from a vast range of highly efficient crops, has a much stronger energy balance. For cane ethanol this is up to 8 to 1, for corn ethanol barely 1 to 1 (some scientists have even found it to be negative). Finally, unlike biofuels made from crops like corn or rapeseed, these fuels have had no impact on food prices. Brazilian ethanol production is at all time highs, whereas sugar prices have declined (previous post).

Scientists have found the technical potential for sustainable biofuels in the South to be very large. Researchers from the International Energy Agency's Bioenergy Task 40 have found that, by 2050, Africa and Latin America alone could produce more than 500 Exajoules of exportable bioenergy, after meeting all food, fiber, fodder and forest products needs of growing populations (more here).

The United States and the European Union have imposed barriers on Brazil's ethanol, which almost doubles the price to consumers in those countries, according to Brazilian producers:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: biodiesel :: poverty alleviation :: developing countries :: trade :: tariffs :: Brazil ::

Brazilian President Luiz Inacio Lula da Silva said in a document attached to the report that the use of ethanol in transportation reduces carbon gas emission by approximately 25.8 million tons per year in his country.

"Our aim is to increase the supply of biodiesel by 5 percent in Brazil up to the year 2013," said the president.

The report highlighted the fact that Brazil holds the fifth lowest emissions rate per capita among the 70 countries with the highest human development indices. In 2004 its carbon footrpint was was 1.8 ton per inhabitant, 60 percent lower than the world's average of 4.5 tons and more than 10 times lower than the average American (table, click to enlarge), Australian or Canadian.

Efficient biofuels have played an important role in this achievement.

For the first time in the history of the Human Development Index, Brazil ranks amongst the countries with a "high development" status. Its economic growth however has a low carbon profile, making the country an example for others to follow.


Image: carbon intensity of the economy, and per capita carbon footprint: Brazil and the US compared. Credit: online interactive tools on carbon footprinting at the UNDP HDR website.

References:
Xinhua: UN suggests removal of tariffs on Brazilian ethanol - November 27, 2007.

UNDP Human Development Reports website.

UNDP: Human Development Report 2007/2008 [*.pdf] - English Summary.

UNDP Human Development Reports: Fighting climate change: Human solidarity in a divided world - November 27, 2007.