Brazilian Biofuels Programmes from the WEL Nexus Perspective

Brazil’s biofuel programmes viewed from the WEL-nexus perspectiveIn the case of MT, the rise in rural workers’ real average income is associated with theincreasing profitability of the soy-growing business, which is explained by the rise ininternational soybean prices and in domestic demand for bio-diesel production. Moreover, theintroduction of direct planting techniques and mechanical harvesting is also growing in thebusiness, which explains, in the short term, the rise in the average real income for ruralworkers.In the long term, the intensive mechanisation of the sugar cane and soy-growing business willreduce the number of employees in these activities. Mechanised harvesting both requires fewerworkers per hectare planted and also alters the employees’ profile, creating opportunities forskilled workers such as tractor drivers, drivers in general, mechanics, harvester drivers, andelectricians, among others. As a result, uneducated and unskilled workers, who form the greatmajority, especially in sugar cane plantations, are most likely to end up out of a job. Thistrend, which goes hand in hand with the concentration of land ownership – as observed in theparticipation of farming on leased land in the total area planted with sugar cane and soy in thestates of SP and MT – increases social pressures in rural areas, leading to rural–urbanmigration and, above all, to conflicts due to the demand for land redistribution (agrarianreform). 14 In protest against the concentration of land ownership, and against unemploymentamong less-qualified rural workers, the highest number of land invasions since 2004 wasrecorded in 2011, with 97 farms invaded, of which 46 were in SP and 17 in MT (INCRA, 2011).The biofuel expansion plan, even if it is based only on increasing sugar cane and soybeanproduction in two states (SP and MT), would encounter no barriers in respect of wateravailability in the Paraná and Amazon basins. However, the rise in water needs for sugar caneproduction in SP would lead to competition for scarce potable water resources, thusthreatening the supply of water for human consumption.In terms of the energy dimension, the literature review shows that the energy balance ofethanol from sugar cane is extremely positive, as is the energy balance for soy-based biodiesel.Therefore, the expansion of Proalcool and PNPB are to be welcomed from thisperspective.In brief, we conclude that the production of ethanol from sugar is sustainable in terms of theWEL nexus as well as socially and environmentally, because: (a) land and water are availableto support the expansion of sugar cane cultivation; (b) there have been associated increases inincome and rural development; (c) its energy:profit ratio is positive; and (d) the potential ofemissions mitigation relative to gasoline is positive (Table 5.1). In terms of economicsustainability, although ethanol is cost-competitive with gasoline, it has become less profitable,which jeopardises its long-term economic sustainability.Soy-based bio-diesel is also sustainable in terms of water, energy and land, andenvironmentally, for the same reasons as for ethanol (Table 5.1). However, the system iscurrently not socioeconomically sustainable. While it is profitable, bio-diesel is not competitivein terms of cost with diesel, because there is a strong rise in the price of soybeans in theinternational market. However, although the rural workforce has seen increased incomes, thevery week inclusion of family farming systems in the production of bio-diesel is negative interms of rural development.14 This refers to the concentration of land ownership in Brazil, where 1% of rural properties constitute approximately30% of all the rural area, and 31.6% of properties occupy only 1.8% of the total rural area (Nascimento and Saes,2009).42