With the recent rising concerns regarding energy security and the environment, interest in biofuels has grown substantially. Consideration of biofuels has been due to their potential beneficial impact on energy security, mitigation of Greenhouse Gases (GHGs) in the transport sector and rural economic development. Growing concern surrounding the sustainability of biofuels has led to numerous initiatives that attempt to define sustainability in the context of biofuels. Their aim is that, if adopted, these standards will deliver a sustainable outcome.
The majority of standards for biofuels and biofuel feedstocks are without a national context (with the exception of the Roundtable on Sustainable Palm Oil - RSPO and forthcoming national interpretations in the Roundtable on Responsible Soy - RTRS). This paper addresses the concept of biofuel sustainability in Brazil. The aim is to support the effective development of sustainability standards by gathering the available information and interpreting impacts and outcomes in a specific national context. The report assesses the status of key issues for and potential implications of applying sustainability standards in Brazil, in terms of market relevance, potential production areas and volumes and the capacity to implement and monitor standards.
The term biofuels can be used to cover solid biomass and liquid and gaseous fuels derived from biomass. This report is focused primarily on liquid biofuels. While there are many feedstocks for liquid biofuels, the scope of this paper is limited primarily to soybean for biodiesel and sugarcane for bioethanol.
The biofuel industry in Brazil is well established for ethanol. Large-scale ethanol use began in 1975 and is second only to the USA in terms of production volume of ethanol. Centers of supply and demand for bioethanol are well matched at present (Center-South dominated). Such concentration has enabled economies of scale to be realized and ethanol is competitive with gasoline both in Brazil and globally (despite international tariffs applied to Brazilian imports e.g. in the US and Europe). Despite around 85% of domestic production being consumed in Brazil it is currently and is forecast to continue to be the world‟s largest exporter of bioethanol. Feedstock costs represent up to 80% of the cost of production of bioethanol and improving yield is a key driver for further cost reductions. Substantial R&D capacity exists and is applied in Brazil, which has led to such economic improvements over time and continues to focus on further improvements through a recently established center. Ensuring economic sustainability from increased production requires an infrastructure that can cope with increased volumes. Investments are planned for pipelines in the Center-South to connect the producing regions with ports.
Brazilian biodiesel production is substantially lower and the National Biodiesel Program (PNPB) is focused on delivering socio-economic goals. Soybeans are however exported or crushed and exported and the soy oil is a biodiesel feedstock used for international production, notably in Europe where mandates have steadily increased and the transport fleet is diesel-dominated.

The report considers the following implications of applying sustainability standards in Brazil:

• Market relevance of sustainability standards
• Implications for production potential and plans
• Capacity building implications

By: Winrock International

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