Risks and Opportunities for Sustainable Biofuel Production in Latin America

Many countries in Latin America have established their own national programs for the promotion and use of biofuels, in the hope that they could also duplicate the success of the Brazilian biofuels program, both locally and globally. Biofuel-ethanol production from sugarcane is being targeted by Colombia, Venezuela, Costa Rica and Guatemala. Argentina is focusing on soybean-biodiesel. Soybean and (in a way) sugarcane are bioenergy crops that are partially food-based, and therefore may have possible sustainability issues.

The issue of biofuel-sustainability has important future implications in Latin American countries which cultivate these bioenergy crops. Certification schemes are being proposed (for example in some European countries) to ensure that only sustainably produced biofuels can be traded.

Researchers from WIP Renewable Energies (Germany) present an "an overview of the hotspots of conflicts in biofuel production in Latin America", and an evaluation of tools/initiatives to ensure sustainable production in the continent. Among the findings of the study are: (1) potential negative impacts which go against sustainable biofuels production in Latin America include: deforestation of the Amazon forest, degradation of the Cerrado, displacement of indigenous communities and the food–fuel conflict; (2) Industry stakeholders and governments in Latin America have initiated some sustainability initiatives to minimize the negative impacts. These include, the "Amazon Moratorium", the "Verified Sustainable Ethanol Initiative", and the "Round Table on Responsible Soy". Although many of the initiatives are done on a voluntary basis, they are reported to be important for improving "economic, environmental and social sustainability of biofuels production/use in Latin America"; (3) Implementation of sustainability schemes will be "beneficial for both domestic markets and for facilitating exports to the European market".

The full report is published in the journal, Energy Policy (URL above).