Policy and diplomacy in the production of second generation ethanol in Brazil: international relations with the EU, the USA and Africa

Concerns over the global energy crisis and climate change are increasingly mediated through the deployment of renewable energy sources, such as biofuels. Second generation (2G) biofuels derived from non-edible feedstocks offer more sustainable and higher productive alternatives than first generation (1G) ones, which are more water and land intensive. New cooperation opportunities, particularly among Brazil, the USA and the EU, have been generated by the emerging 2G global market. Future expansion of 2G production and consumption in the African continent is envisaged to offer a range of benefits, including decreased oil dependency and generation of economic activities which can foster rural development. This chapter outlines the current state of affairs with respect to 2G biofuels in Brazil, including discussion on the future prospects of introducing 2G production in Africa. Opportunities and challenges of 2G cooperation between Brazil, the USA and the EU are discussed. Secondary data from government documents, published reports and scientific studies were integrated with semi-structured interviews and personal communications with Brazilian line ministries and EU officials. Data show a great potential for the expansion of Brazil’s 1G ethanol industry in Africa, but 2G development is not identified as a foreseeable option in the forthcoming years. This is due to the high production costs, lack of advanced technology and the unattractive business environment. The creation of a 1G consumer market and establishment of safe legal and policy frameworks are needed in order to foster 2G investments. As observed in terms of international cooperation, Brazil’s potential to foster 2G technologies in Africa is compromised by a disconnect between science production, industrial and policy developments. Cooperation of Brazil with the EU is focused on fundamental sciences, while linkages with the USA are limited to private sector and market development. Increased policy coordination towards the transition from 1G to 2G, as well as stronger budget support, is key for enabling Brazil’s future leadership in the international 2G arena