~ IDB President Moreno; former Florida Governor Jeb Bush; and Roberto Rodrigues, former Brazilian Minister of Agriculture co-chairmen of the Interamerican Ethanol Commission (IEC),
led a briefing session on biofuels, the emerging Caribbean and Latin American market, and implications of the U.S.-Brazil ethanol agreement ~
 

April 2, 2007 (Washington, DC) – At a briefing event today at the Interamerican Development Bank Headquarters, His Excellency Luis Alberto Moreno, President of the IDB; the Honorable Jeb Bush, former Governor of the State of Florida; and His Excellency Roberto Rodrigues, President of the Superior Council of Agribusiness of FIESP and former Minister of Agriculture of Brazil; announced how the IEC will work with the private sector to expand and strengthen our Hemispheric Biofuels Market. The briefing also included a first-look presentation of a comprehensive study of biofuels markets through 2020 commissioned by the IDB and carried out by Garten Rothkopf, an independent consultancy that focuses on emerging markets. Bush, Rodrigues and Moreno serve as co-chairs of the IEC, which has as its mission to promote the usage of ethanol in the gasoline pools of the Americas.

The three co-chairs and David Rothkopf were joined by a distinguished audience that included Cliff Sobel, U.S. Ambassador to Brazil; Linneu Carlos da Costa Lima, Brazilian Deputy Minister of Agriculture for Production and Agroenergy; Joseph Lambert, Senate President of Haiti; Brian C. Dean, Acting Executive Director of the IEC; the co-chairs of the Ethanol Advocacy Committee: Jorge L. Arrizurieta, Chair, Intl. Policy Group, Akerman Senterfitt; Dominique Virchaux, Managing Partner, Virchaux & Partners; and Mario Fernandez, President, COFE Properties, LLC; and several key officials from the IDB, including senior staff of the bank’s section for Alternative Sources of Energy. Additional attendees included corporate leaders, scientific experts, scholars, and other government leaders.

Moreno, Bush, and Rodrigues highlighted the main objectives of the commission, which include: promoting increased ethanol blended fuel use throughout the region; promoting the integration of technical and scientific research efforts across the hemisphere related to the production and distribution of ethanol; determining investment needs in both agriculture and infrastructure to enable a hemispheric wide market for ethanol blended fuel; determining the economic and environmental implications of carbon credits produced by the project; encouraging the development of environmentally sound ethanol operations; and recommending a set of actions in order to create an international market for ethanol.

In addition, the Commission is organizing a New, Strategic Ethanol Information Campaign. Recognizing that lack of information and misinformation are among the principal obstacles hindering expansion of the ethanol market, the commission views education as key to the success of increased ethanol production and consumption and aims to serve as a clearinghouse for up to date, accurate, and objective information on ethanol. This information will be shared with the general public, policy makers and shapers, industries, and investors.

President Moreno discussed the particular challenges facing smaller Latin American countries that are launching biofuels industries stating, “We must recognize ethanol potential as a catalyst for development in low income areas of Latin America and the Caribbean…Biofuels could bring investment, development and jobs to rural areas with high levels of poverty, while reducing dependence on imported fossil fuels” in several IDB member countries.” He also mentioned the Bank’s renewable energy strategy and its work plan in member countries with strong biofuels potential and reviewed the IDB’s role in the implementation of the historic biofuels cooperation agreement between Brazil and the U.S. Moreno noted that the “IDB’s Private Sector Department is structuring senior debt financing for three Brazilian ethanol production projects that will have a total cost of $570 million.”

Former Governor Bush offered an analysis of the political and commercial barriers to free trade in biofuels and described how renewable fuel targets in the U.S. could impact the hemispheric biofuels industry. He pointed out that “with the growing demand for ethanol, there is room for everyone at the table, from different feedstock in the U.S. and abroad.” He also stated, “To achieve the strategic vision outlined by the President, we need to dramatically increase importation of ethanol from our neighbors and allies in the Western Hemisphere. Eliminating the 54-cent tariff on imported ethanol is the quickest, least expensive way for America to significantly increase our supply of ethanol.” In addition, Bush detailed his vision for how the U.S. can strengthen its energy matrix through closer cooperation with Latin American biofuels producers and highlighted some of the U.S. ethanol market deadlocks saying, “Removing trade barriers to imported ethanol would go a long way to addressing the limited infrastructure in many parts of the nation.”

Former Minister Rodrigues spoke of Brazil’s role as a global leader in ethanol technology, production and distribution. He stated, “Brazil’s ethanol capacities and technology position the nation to provide leadership throughout the hemisphere,” and emphasized that “Agroenergy is going to change trade relations and the economic geography of the world.” Brazil is the world’s leader in ethanol exports with more than 300 million liters exported in 2006.

David Rothkopf presented "A Blueprint for Green Energy in the Americas", an analysis of the region's global competitive position in biofuels prepared for the IDB by Garten Rothkopf. Some key findings highlighted were: $200+ billion in new investment is necessary for biofuels to provide 5% of transport energy in 2020; blend mandates have been enacted in 27 of the 50 countries surveyed and 40 have some form of biofuels promotion legislation; a number of countries in the region, led by Brazil, have the potential to develop sustainable, competitive biofuels industries; there is a need for common global standards for ethanol or biodiesel, international futures contracts, and a reduction in tariff barriers to facilitate the development of global trade. Rothkopf concluded by saying "Latin America and the Caribbean have the potential to be the Persian Gulf of biofuels without the instability."

Moreover, Moreno, Bush and Rodrigues agreed that cooperation on renewable energy has the potential to serve as a uniting force in the Americas, contributing toward economic growth and a cleaner environment. All three alluded to the significant opportunities expanded ethanol production holds for sustainable development and job creation throughout the Western Hemisphere.