World Energy Outlook 2006

Figure 16.13: Planned Infrastructural Developments for Ethanol
in Brazil
The boundaries and names shown and the designations used on maps included
in this publication do not imply official endorsement or acceptance by the IEA.
Note: State abbreviations are: GO – Goais; SP – São Paulo; MG – Minas Gerais; RJ – Rio de Janeiro.
Source: Petrobras.
Brazil will also need to establish a clear regulatory framework in order to
increase production and to address the potential environmental and social
impacts of expanding ethanol production. To this end, the Brazilian
government is carrying out a strategic environmental assessment to determine
where to plant sugar cane in the future. Currently, the amount of land devoted
to the growing of sugar cane is far less than land set aside for planting other
crops. In 2005, less than 10% of the cultivated area was used for growing sugar
cane, compared with 20% for corn and nearly 35% for soybeans. Yet the
highly-intensive production systems for ethanol have caused environmental
damage through the use of fertilizers and pesticides. Sugar cane is also a major
source of air pollution, due to burning practices prior to manual harvesting.
The phase-out of burning is being enforced in Brazil, with a deadline for
complete phase-out by 2022. In the longer term, the possible emergence of
ligno-cellulosic ethanol production could lower costs and increase demand for
ethanol (see Chapter 14). Good environmental legislation and enforcement are
essential to ensure the sustainability of ethanol production. In this regard,
Brazil is in a position to be a role model for other countries with emerging
biofuels markets.
478 World Energy Outlook 2006 - FOCUS ON KEY TOPICS