Report: US and Brazil to Launch Biofuels Initiative
4 February 2007
McClatchy reports that the US and Brazil will soon launch a partnership to expand ethanol and other biofuels in the Americas. The goals are to introduce ethanol into more countries, and to build a global, tradable ethanol commodity market akin to that of oil.
Eduardo Pereira de Carvalho, a former Brazilian agriculture and finance minister who heads the Sao Paulo Sugarcane Agroindustry Union, proposed the partnership concept during testimony before the US Senate Committee on Foreign Relations in June 2006.
Brazil has been working to promote a global market for ethanol. In order to achieve this goal, we consider that it is important to launch a Brazil-US partnership. Brazil and the USA account for 70% of the world’s ethanol production. In our view there is not going to be a global market until we see ethanol being produced and consumed in many countries. We need more players. Such partnership between our two countries could pursue goals such as common standards, technical cooperation, common research projects and&madsh;above all—joint efforts to promote ethanol in third markets.
In short, free markets and fair systems to govern them, need to be recognized as powerful instruments to secure a balanced supply of renewable fuels in the near future. And Brazil and the USA would have much to gain by joining forces to globalize ethanol as an energy commodity.—Eduardo Pereira de Carvalho
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