Brazil’s biofuel programmes viewed <strong>from</strong> <strong>the</strong> <strong>WEL</strong>-nexus perspectiveIn <strong>the</strong> case of MT, <strong>the</strong> rise in rural workers’ real average income is associated with <strong>the</strong>increasing profitability of <strong>the</strong> soy-growing business, which is explained by <strong>the</strong> rise ininternational soybean prices and in domestic demand for bio-diesel production. Moreover, <strong>the</strong>introduction of direct planting techniques and mechanical harvesting is also growing in <strong>the</strong>business, which explains, in <strong>the</strong> short term, <strong>the</strong> rise in <strong>the</strong> average real income for ruralworkers.In <strong>the</strong> long term, <strong>the</strong> intensive mechanisation of <strong>the</strong> sugar cane and soy-growing business willreduce <strong>the</strong> number of employees in <strong>the</strong>se activities. Mechanised harvesting both requires fewerworkers per hectare planted and also alters <strong>the</strong> employees’ profile, creating opportunities forskilled workers such as tractor drivers, drivers in general, mechanics, harvester drivers, andelectricians, among o<strong>the</strong>rs. As a result, uneducated and unskilled workers, who form <strong>the</strong> greatmajority, especially in sugar cane plantations, are most likely to end up out of a job. Thistrend, which goes hand in hand with <strong>the</strong> concentration of land ownership – as observed in <strong>the</strong>participation of farming on leased land in <strong>the</strong> total area planted with sugar cane and soy in <strong>the</strong>states of SP and MT – increases social pressures in rural areas, leading to rural–urbanmigration and, above all, to conflicts due to <strong>the</strong> demand for land redistribution (agrarianreform). 14 In protest against <strong>the</strong> concentration of land ownership, and against unemploymentamong less-qualified rural workers, <strong>the</strong> 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 <strong>the</strong> Paraná and Amazon basins. However, <strong>the</strong> rise in water needs for sugar caneproduction in SP would lead to competition for scarce potable water resources, thusthreatening <strong>the</strong> supply of water for human consumption.In terms of <strong>the</strong> energy dimension, <strong>the</strong> literature review shows that <strong>the</strong> energy balance ofethanol <strong>from</strong> sugar cane is extremely positive, as is <strong>the</strong> energy balance for soy-based biodiesel.Therefore, <strong>the</strong> expansion of Proalcool and PNPB are to be welcomed <strong>from</strong> thisperspective.In brief, we conclude that <strong>the</strong> production of ethanol <strong>from</strong> sugar is sustainable in terms of <strong>the</strong><strong>WEL</strong> nexus as well as socially and environmentally, because: (a) land and water are availableto support <strong>the</strong> expansion of sugar cane cultivation; (b) <strong>the</strong>re have been associated increases inincome and rural development; (c) its energy:profit ratio is positive; and (d) <strong>the</strong> 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 <strong>the</strong> same reasons as for ethanol (Table 5.1). However, <strong>the</strong> system iscurrently not socioeconomically sustainable. While it is profitable, bio-diesel is not competitivein terms of cost with diesel, because <strong>the</strong>re is a strong rise in <strong>the</strong> price of soybeans in <strong>the</strong>international market. However, although <strong>the</strong> rural workforce has seen increased incomes, <strong>the</strong>very week inclusion of family farming systems in <strong>the</strong> production of bio-diesel is negative interms of rural development.14 This refers to <strong>the</strong> concentration of land ownership in Brazil, where 1% of rural properties constitute approximately30% of all <strong>the</strong> rural area, and 31.6% of properties occupy only 1.8% of <strong>the</strong> total rural area (Nascimento and Saes,2009).42
Brazil’s biofuel programmes viewed <strong>from</strong> <strong>the</strong> <strong>WEL</strong>-nexus perspectiveTable 5.1 Sustainability of <strong>Biofuels</strong> in Brazil*Ethanol Bio-dieselLand occupation vs. fossil fuels ↑ ↑Price of land vs. fossil fuels ↑ ↑Rural worker income vs. fossil fuels ↑ ↑Rural development vs. fossil fuels ↑ ↑Cost vs. fossil fuel + -Water availability + +Energy balance + +GHG emissions reduction vs. fossil fuels + +Note: * taking into account <strong>the</strong> items analysed in this paper.Key: (↑) increases; (↓) decreases; (+) positive; (-) negative.From <strong>the</strong> policy perspective, in all phases of Proalcool and in PNPB, government interventionsand <strong>the</strong> focus on value systems were very important to increasing ethanol and bio-dieselproduction and consumption, as well as to developing <strong>the</strong>ir respective technologies. In nei<strong>the</strong>rcase, however, did policy attach priority to promoting appropriate and less intensiveagricultural practices.In <strong>the</strong> case of PNPB, this concern is even more important. It shows <strong>the</strong> possibility of perverseeffects and also <strong>the</strong> importance of heeding <strong>the</strong> sustainability dimension of developmentprogrammes. Its original goals included <strong>the</strong> implementation of a sustainable programme,promoting social inclusion and regional development; and <strong>the</strong> production of bio-diesel <strong>from</strong>different oleaginous plants in diverse regions. After five years, <strong>the</strong> results have been <strong>the</strong> largescale,capital-intensive focus on soybean as <strong>the</strong> dominating feedstock (84%); <strong>the</strong> majority ofauthorised bio-diesel production capacity is in <strong>the</strong> Mid-west region; and <strong>the</strong> role of familyfarmers is limited to producing basic grains (Garcez and Vianna, 2009). Keeping <strong>the</strong> above inmind, lessons <strong>from</strong> Brazil can indeed be applied and its experiences reproduced in many o<strong>the</strong>rregions. The principal lessons <strong>from</strong> <strong>the</strong> <strong>Brazilian</strong> biofuel programmes that o<strong>the</strong>r countriesshould take into account in order to preserve <strong>the</strong> initial objectives of inclusive and sustainablegrowth are: Availability of a low-cost marginal lands to be incorporated in <strong>the</strong> production ofbiofuels Investment in crops that have a positive energy balance and consequently reduceGHG emissions Investment in suitable technologies adequate to <strong>the</strong> reality of <strong>the</strong> country in termsof social, economic and cultural aspects; Investment in <strong>the</strong> entire value system of <strong>the</strong> biofuel to be produced Creation of incentives to favour social inclusion and regional development in aneconomically sustainable way Development of adequate legislation and enforcement to reduce localenvironmental impacts associated with feedstock production and biofuelmanufacture. Creation of specific funding with international investment, which can turn <strong>the</strong>programme a ‘transparently observable’ phenomenon, with periodic evaluationsagainst sustainable development criteria; minimising <strong>the</strong> influence of pressures<strong>from</strong> sectors, economic fluctuations and political issues, in <strong>the</strong> programmes. Implementation of strict monitoring plans to guarantee that programme outcomesare not derailed <strong>from</strong> <strong>the</strong> initial commitments given that, in most interventions,outcomes do not depend solely on policy.43