Biofuel sustainability in Latin America and the Caribbean – a review of recent experiences and future prospects

Abstract

The Latin American and Caribbean (LAC) region is a leader in global biofuel production, accounting for 27% of supply. This is driven by a proliferation of mandates and targets calling for increased use of biofuels around the world. Unsustainable biofuel production can alter landscapes and stress social-ecological systems. To mitigate impacts, different types of governance mechanisms have been introduced including national regulations, voluntary certification schemes, sustainability standards, meta-standards, and codes of conduct. Voluntary certification has gained prominence in the region, with over 220 producers and processors in 12 LAC countries obtaining certification. However, given the potential social and environmental impacts evident in the region, voluntary certification may be insufficient and stronger sustainability mechanisms may be justified.

Notes

1 It is difficult to know if exported oilseeds or oils from the LAC region to biofuel producing regions such as the EU are used for biofuel production or in other sectors. Nevertheless, it is worth noting feedstock exports here because it is likely that some feedstock originating from LAC were used in by EU member states to produce biofuel in recent years (MVO 2009) [172].

2 Brazil ended its direct subsidies in 1999, and at the end of 2011 the US removed its import tariff on Brazilian ethanol [53].

3 Brazilian ethanol has always been strongly tied to the country's sugarcane industry. While sugarcane remains the primary feedstock for ethanol, Brazil, as well as Argentina, have also seen recent investment in maize-based ethanol production [54].

4 Between January and December 2009 Brazilian sugar prices, which serve as benchmark for the world market, doubled. Prices declined by mid-2010, but underwent a similar increase by the end of 2010 and remained high through the first quarter of 2011 [56].

5 For example, in Brazil, energy security and autonomy as well as socio-economic development were initial goals of deploying a bioethanol industry; reducing negative climate change impacts and other environmental objectives were later added [87].

6 The crop-specific schemes were not originally developed for biofuels, but have been adapted to make them compatible with other biofuel efforts, particularly the EU RED [89].

7 Only the six schemes that have been active in LAC are included.

8 Multiple factors contribute to Mexico's tortilla crisis of 2007 including a high degree of concentration in Mexico's maize importing and processing industries, reduction of food subsidies, and a drop in rural wages [155].

9 There are few well-documented links between biofuel production and conflicts over land rights or tenure in Latin America. However, there are many land-related conflicts linked to crops that are commonly used as biofuel feedstock, e.g. soy and sugarcane [24,164,165]. This section examines issues related to these broader land conflicts.

10 The relevant international treaties include the ILO's Convention on Indigenous and Tribal Peoples and the UN Declaration on the Rights of Indigenous Peoples.

11 Bonsucro divides their criteria into core criteria, which must be fully satisfied to achieve compliance, and non-core criteria, for which applicants may show partial compliance and still achieve certification. Demonstration that producers have clear title to the land on which they operate is not a core criterion [144].