3. Brazil: Ethanol

Brazil has been a leader in fuel ethanol production since the Proálcool program began in 1975. The industry received decades of government support, but it is now largely self-sufficient and cost-competitive with gasoline. Somewhat surprisingly, however, the last few years have seen Brazil change from a major ethanol exporter to an importer from the USA due to reductions in sugarcane agriculture and in ethanol production. Among starch and sugar crops currently used for commercial ethanol production, Brazilian sugarcane shows the highest returns on energy investment and the most favorable carbon balance. Indeed, the Brazilian model is considered by many to be a success story worthy of emulation across the global south. However, sustainability challenges still remain in some issues that are discussed here, along with recent policies to address such concerns. In addition, there are concerns about the social conditions of sugarcane production. Cane production in Brazil was expected to almost double in the next decade in order to satisfy domestic demand, as well as a growing international trade in fuel ethanol, but recent figures show a significant decrease. These pressures raise concerns about the environmental and social impacts of the industry going forward. Several initiatives are in place to promote sustainability, which will be examined in this chapter, including agro-ecological zoning.