bonham consulting brazil working group arnold bascombe carol mccann tony mcgovern brazil working...

BONHAM CONSULTING

BRAZIL WORKING GROUP

Arnold BascombeCarol McCann

Tony McGovern

BRAZIL’S CLIMATE CHANGE POSITIONS

BRAZIL’S CLIMATE CHANGE POSITIONS

• Burden Sharing – Common but differentiated responsibility – Based on emission levels.

• Willing to accept targets – only under common but differentiated responsibility

• Legally binding emission targets – only developed nations which bear greater responsibility for greenhouse emissions.

• Supports Carbon Trading – Initially opposed • Supports Clean Development Mechanism • Mitigation - prevention of deforestation, and boosting the use

of bioenergy.

BRAZIL EXPORT COMPOSITION1975 2006

Mineral F uels 1%

C hemicals 4%

Mis c . Manufactured

artic l.3%

Mach. and Trans p eqiup

5%

Manufactured G oods 11%

Animals & Vegetable Oils

9%

C rude Materials 19%

F ood and L ive Animals

48%

C hemicals 7%

B everages and Tobacco

1%

F ood and L ive Animals

18%

C rude Materials

16%

Mineral F uels 8%

Animals & V egetable Oils

1%

Manufactured G oods

18%

Mach. and Trans p eqiup

25%

Mis c . Manufactured

artic l.4%

C omm & Trans not C las s .

2%

Sugar exports over the period 1975-2005 fell from 13.2% - 3.3% - Showing reduction in Sugar exports to duel ethanol production

Ethanol in Brazil (Sugar Cane) Compared to Ethanol in US (Corn)

Characteristic Brazil U.S.

Total arable land 355 270(1) Million hectares. (1) Only contiguous U.S. (excludes Alaska)

Total area used for ethanol crop

3.6 (1%) 10 (3.7%)

Million hectares (% total arable)

Productivity per hectare 7,500 3,000 Liters of ethanol per hectare. Brazil is 727 to 870 gal/acre (2006), US is 321 gal/acre (2005/06)

Energy balance (input energy productivity)

8-9 times

1,3-1,6 times

Ratio energy expended in production/energy obtained from ethanol

Ethanol fueling stations in the counrty

33,000 (100%)

873 (0,5%)

As % of total fueling gas stations in the country. U.S. has 170,000 (see Inslee, op cit pp. 161)

Fuel ethanol used on transportation

40% 3.6% As % of the country's total fuel consumption on a volumetric basis

Cost of production (USD/gallon)

0.83 1.14 2006/2007 for Brazil (22¢/liter), 2004 for U.S. (35¢/liter)

Government subsidy (in USD)

0 0,51/bushel

U.S. as of 2008-04-30. Brazilian ethanol production is no longer subsidized.

BRAZIL: Leader in Agricultural Technology and Innovation

REPLACE FOSSIL FUELS

REPLACE FOSSIL FUELS

MAKE OTHER COUNTRIES MORE

EFFICIENT

MAKE OTHER COUNTRIES MORE

EFFICIENT

REPLACE FOSSIL FUELS

REPLACE FOSSIL FUELS

MAKE OTHER COUNTRIES MORE

EFFICIENT

MAKE OTHER COUNTRIES MORE

EFFICIENT