Date: January 16, 2008

Source: Yahoo Finance

Sao Paulo, Brazil- An important step in the right direction. That is how Brazil's Sugarcane Industry Association (UNICA) assesses the report "Sustainable Biofuels: Prospects and Challenges", released by Britain's Royal Society on January 14, 2008. The report's key conclusions are that each biofuel must be evaluated on its own merits and governments should ensure their policies promote only the sustainable production and use of biofuels that result in meaningful emissions reduction.

According to UNICA President and CEO Marcos Jank, the Royal Academy's conclusion should go a long way to clarify misleading and incomplete information that often surfaces when Brazilian ethanol, produced from sugarcane, is lumped together with less efficient biofuels produced from non- sustainable sources.

"Biofuels can be produced from various feedstocks, and they are not all the same," Jank says, emphasizing that ethanol from sugarcane produced in Brazil is widely recognized as the most efficient in terms of reduced greenhouse gas emissions, improved energy balance and lower production costs.

"Studies produced in various countries frequently consider biofuels as if they were somehow equals that one can compare. Unfortunately, some studies arrive at broad conclusions without recognizing the profound differences that exist among different biofuels. These generalizations are often the basis for misleading assessments about Brazilian sugarcane ethanol."

The Royal Society report highlights the importance of continued independent research for a complete picture about the sustainability of different types of biofuels. "The sugar and ethanol industry in Brazil is ready to cooperate with these efforts. We find it essential that quality analyses and unbiased comparisons continue to be produced and disseminated," concludes Jank.

The British report comes at a defining moment for the future of biofuels in Europe as a new directive governing the use of renewable energy is expected to be issued on January 23. Once the directive is approved by the European Parliament in coming months, it will lead to the implementation of the decision reached by the heads of government of EU member states requiring a 10% biofuel target for transportation fuels by 2020.

"We are optimistic that Europe will not only implement the 10% biofuel mix, but to also adopt biofuel certification mechanisms that come from a transparent consultative process that involves all interested parties, including the world's major producers," says Jank.

About UNICA:

Brazil's Sugarcane Industry Association (UNICA) represents the top producers of sugar and ethanol in the country's South-Central region, especially the state of Sao Paulo, which accounts for 60% of the country's total production. Along with its 101 member companies, UNICA develops position papers, statistics and specific research in support of the sugar and ethanol sector. Its membership accounts for about 50% of Brazil's sugarcane harvest. In 2007, Brazil produced 425 million metric tons of sugarcane, which yielded 29.8 million tons of sugar and 17.7 billion liters of ethanol.