The opaque politics of power and the consolidation of the biofuels market
Henrique Oliveira from Ethablog analyses the opacity of a biofuels production deal between a large multinational and the state governor of Matto Grosso in Brazil. Both actors share common interests. But the deal also shows the fine line between where healthy common interests end and outright conflicts of interest begin.
To us, biofuels and bioenergy are much more than just fuels. They are a symbol of a new economic, social and even cultural paradigm. One of the elements that define the new era is radical political transparency - unlike the secrecy surrounding the old politics of petroleum. We feel that biofuels advocates should do more than merely hint at the benefits of renewable energy and sustainability. They should actively engage themselves in creating new political parameters so that access to energy, resource control and social justice become part of the bioenergy paradigm. Social sustainability and even 'political sustainability' are just as important as environmental durability.
Henrique Oliveira notes: On July 27th, Archer Daniels Midland (ADM) deemed it necessary or convenient to put out a press release announcing that it had chosen the state of Mato Grosso as the site for its first biodiesel plant in Brazil. As motives, it proffered the fact that the new plant, to be installed in the town of Rondonopolis, is "strategically located adjacent to ADM’s existing soybean crushing plant in Rondonopolis to maximize synergies between ADM’s Brazilian origination, transportation and processing capabilities".
It also communicated the strong political support that the project has received from the state government, giving the Governor's own words as proof: “The Government of the State of Mato Grosso recognizes the importance of renewable fuels, and we are pleased that ADM, a world leader in bio-based fuels, has chosen our state to build its first Brazilian biodiesel plant,” stated Blairo Maggi, Governor of Mato Grosso.
Based on his keen knowledge of local politics, Oliveira then asks some critical questions:
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: Brazil :: transparency
To us, biofuels and bioenergy are much more than just fuels. They are a symbol of a new economic, social and even cultural paradigm. One of the elements that define the new era is radical political transparency - unlike the secrecy surrounding the old politics of petroleum. We feel that biofuels advocates should do more than merely hint at the benefits of renewable energy and sustainability. They should actively engage themselves in creating new political parameters so that access to energy, resource control and social justice become part of the bioenergy paradigm. Social sustainability and even 'political sustainability' are just as important as environmental durability.
Henrique Oliveira notes: On July 27th, Archer Daniels Midland (ADM) deemed it necessary or convenient to put out a press release announcing that it had chosen the state of Mato Grosso as the site for its first biodiesel plant in Brazil. As motives, it proffered the fact that the new plant, to be installed in the town of Rondonopolis, is "strategically located adjacent to ADM’s existing soybean crushing plant in Rondonopolis to maximize synergies between ADM’s Brazilian origination, transportation and processing capabilities".
It also communicated the strong political support that the project has received from the state government, giving the Governor's own words as proof: “The Government of the State of Mato Grosso recognizes the importance of renewable fuels, and we are pleased that ADM, a world leader in bio-based fuels, has chosen our state to build its first Brazilian biodiesel plant,” stated Blairo Maggi, Governor of Mato Grosso.
Based on his keen knowledge of local politics, Oliveira then asks some critical questions:
What the press release failed to acknowledge is that Mr. Maggi is the largest grower of soybeans in the entire world, according to Reuters. ADM's communique also omitted the fact that Mr. Maggi is the president of Amaggi, a family-owned industrial complex that ranks as Brazil's 27th-largest exporter and has plants in a number of locations around the immense state of Mato Grosso - including in Rondonopolis.We agree with his conclusion: the production of feedstocks for biofuels, whether sugarcane or soy, in Brazil or elsewhere, will never achieve critical mass while the relationship between those who produce it and those who control the land on which it is produced is less than crystal clear.
Why are these two vital facts absent from ADM's press release?
What kind of negotiations went on between ADM and the state government in the development of the biodiesel plant in Rondonopolis, Mato Grosso state? What are the "synergies" that led to the choice of that particular state? Why were these not mentioned in ADM's July press release? Does ADM deal with Amaggi, the governor's company? If so, do public and private interests ever intersect?
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: Brazil :: transparency
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home