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Legal issues in EU-Brazil biofuels cooperation
STAVROS AFIONIS
The Hague (April 2013)
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Presentation Outline The EU – Brazil partnership
Legal and trade issues
Indirect land-use change
Highly biodiverse grasslands
Trade barriers
Conclusions
www.cccep.ac.uk
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The EU’s partnershipsThe 2003 European Security Strategy (ESS)
Existing partners
United States JapanCanadaBrazilChinaIndiaMexicoRussiaSouth Africa
Potential partners
EgyptIsraelIndonesiaPakistanUkraineSouth Korea
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The EU – Brazil partnership Established in 2007
1st Joint Action Plan (JAP) in 2008
2nd JAP in 2011 (to last until 2014)
Over 20 sector dialogues Summits
2007 Lisbon2008 Rio de Janeiro2009 Stockholm2010 Brasilia2011 Brussels2013 Brasilia
1) Energy2) Environment and Climate Change3) Information Society4) Maritime Transport5) Satellite Navigation - “Galileo”6) Science and Technology7) Culture8) Education
a.) Tradeb.) Environment
www.cccep.ac.uk
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The EU – Brazil partnership Agenda dominated by trade issues
Brazil is the EU’s 10th trading partner (2.2%)
EU is Brazil’s main trading partner (22%)
Main issuesA. EU – MERCOSUR trade agreement
Negotiations collapsed in 2004, re-launched in 2010
B. Liberalization of EU agricultural market Negotiations in progress (WTO Doha Round)
www.cccep.ac.uk
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EU and biofuelsA. Directives Biofuels Directive (2003)
Renewable Energy Directive (2009)
Targets a.) 2% by 2005b.) 5.75% by 2010
10% by 2020
B. Sustainability criteria.1. GHG emission savings of at least 35% (rising to 50% in 2017)
2. Feedstock not to be derived from land with high biodiversity value
3. Feedstock is not to be derived from land with a high carbon stock
www.cccep.ac.uk
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EU, Brazil and biofuelsIssues
Indirect land-use change (iLUC)
Definition of “highly biodiverse grasslands”
Trade barriers
www.cccep.ac.uk
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Indirect land-use change (iLUC)
Source: Fehrenbach et al, 2008. “Criteria for a Sustainable Use of Bioenergy on a Global Scale” UBA-FB Report 206/41/112, p. 51.
www.cccep.ac.uk
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Indirect land-use change (iLUC)
• Brazil acknowledges scientific consensus on iLUC
• Science has progressed, but models still in infancy
• More science needed – Brazil satisfied with 2nd draft
• The 5% cap is inadequate
• What does Brazil propose?
• US process much more transparent
www.cccep.ac.uk
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Highly biodiverse grasslands
Definition expected since 2010
Vital issue for Brazil
Brazil to expand sugarcane plantations in pasture land
2nd sustainability criteriona) Primary forestb) Natural protected areac) Highly biodiverse grassland
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www.cccep.ac.uk
Highly biodiverse grasslands• Concept invented as a result of an intra-EU compromise
• Definition a complicated issue – several drafts rejected
• Agreement possibly reached this month
• Why has it taken so long:
Challenging task
Intra-EU repercussions
Brazil surprised…
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Highly biodiverse grasslandsWhy is this so important to Brazil?
Agriculture expands in pastures
• About 70% of sugarcane plantations
Compliance could be quite costly
• Natural vs. non-natural grasslands
• Need for in situ inspections
Brazil wants the CBD to come up with a definition
www.cccep.ac.uk
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Trade barriersTariffs and subsidies EU biofuels protectionism
Discussions in several foraa) MERCOSUR
b) WTO
Barriers bound to be abolished???
supports
uneconomical & energy inefficient production
www.cccep.ac.uk
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Concluding remarks Partnership has revolutionised bilateral relations
Focus is on trade
iLUC, grasslands and trade barriers top the agenda
Prospects do not appear promising
www.cccep.ac.uk
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THANK [email protected]