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Brazilian Sugarcane Industry: OECD Report Confirms Overall Benefits of Brazilian Sugarcane Ethanol
Date:7/16/2008

SAO PAULO, Brazil, July 16 /PRNewswire/ -- The Brazilian Sugarcane Industry Association (UNICA) welcomes the OECD Report "Economic Assessment of Biofuel Support Policies" as another major report that highlights the benefits of sugarcane ethanol in terms of greenhouse gas reduction and urges governments to level the playing field by removing trade-distorting subsidies and tariffs.

"In recent weeks, reports by diverse organizations such as FAO, Oxfam, the World Bank, the U.S. Federal Reserve and now the OECD highlight the vital role that Brazilian sugarcane ethanol has in emission reduction as well as economic development. Through competition, not subsidies or trade distortions, gasoline is now the alternative fuel in Brazil, as drivers choose lower costs and less emissions with sugarcane ethanol," states UNICA president and CEO Marcos Jank.

The OECD report reviewed more than 60 studies on GHG balances for biofuels and concluded that, in the case of sugarcane, average emission improvements can surpass 100% because of additional products that result from the process, such as electricity. "This reflects the recent trend in the Brazilian industry towards more integrated concepts combining the production of ethanol with other non-energy products and selling surplus electricity to the grid," the report states.

The OECD report makes clear that mitigating climate change is a global concern, and it does not matter whether biofuels are produced domestically or in other parts of the world, so long as they are produced sustainably where they can make the most significant contribution to the reduction of greenhouse gas emissions.

UNICA welcomes the emerging consensus that opening markets for biofuels and related feedstocks would allow for more efficient production with lower costs, while improving environmental gains and reducing reliance on fossil fuels. "Biofuels should be produced in those parts of the world where they can make the most effec
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SOURCE UNICA - Brazil's Sugarcane Industry Association
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