Brazilian myopia for clear energy

The Intergovernmetal Panel of Climate Change - IPCC, was stabelished in 1988, comprising
195 countries. IPCC is part of the United Nations and his aim is provide the world with a clear
scientific view on the current state of knowledge in climate change and its potential environmental and
socio-economic impacts
On 13 of April 2014, last Sunday, the IPCC presented its fifth report in Berlin. According to it,
almost half of the human CO2 emissions, between 1750 and 2010, happened in the last forty
years. Among several problems in this scenario, stands out the rise of Earth`s Temperature,
which has catastrophic consequences.

The principal agents of CO2 emissions, according to this document is energy (47% of the
emissions), industry (30%), transport (11%) and civil construction (3%).

The report highlights Bioenergy as a crucial factor for mitigation and cites the sugarcane as a
concrete alternative for the reduction of CO2 in the atmosphere, because of the ethanol,
produced from the sugarcane.

Ethanol, or ethyl alcohol, is made from the fermentation of vegetables rich in sugar. In Brazil the
principal source for it is the sugar cane.

The culture of sugarcane in Brazil is strongly present since its colonization, five centuries ago. It
was introduced for the first time in the country in 1530 in the South-west. However, it was in the
Northeast of Brazil that the sugarcane culture had more success. The finish of the Ciclo do
Acar (Sugar Cycle) in Brazil occurred between 1830 and 1880 in special when France
developed technology to have sugar through the beet. In this period, the exportation of Brazilian
sugar declined to 10%. Before this crisis, it was 24%.

After this period, the Brazilian exportation of sugar only decreased. It generated intense crisis
for investors in the sector, shaking the Brazilian economy. Trying to avoid worst problems, the
Federal Government, searched new uses for the sugar. The most significant attempt was the
use of the alcohol arising from the sugar cane in 1920, generating the Ethanol, a clear fuel,
being a bioenergy. This new use of sugar cane was also motivated by the desire to be less
dependent of the fuel importation.

In 1973, occurred the first international crisis of the petroleum and the price of one petroleum
barrel quadrupled. During that decade, 80% of the petroleum used in Brazil was imported.


In 1930, through the decree 197.17, the Government made mandatory the addiction of alcohol
in the imported petrol in a proportion of 5%. The PROLCOOL a Governamental program
launched in 1975 strengthened the sugarcane industry. However, the principal reason of this
program was stabilized the market of sugar and not to be a clear alternative to fossil fuels.
Anyway, the PROLCOOL until 1983 increased the proportion of ethanol in the gas to 25% and
90% of the cars sold in Brazil was moved by ethanol.

Until 1984 this biofuel (ethanol) received meaningful incentives from Brazilian Government.
After that year the incentives decreased and they became extinct in 1990 during the
Government of Fernando Collor de Mello (president who was the first to be impeached in
America Latina, in 1992).

Luiz Inacio Lula da Silva, president of Brazil during 2003 and 2011, was an enthusiast of
ethanol, defending that it would supply the world with renewable fuel.

Nowadays, according to Elizabeth Farina, president of the Uniao da Industria de Cana de
Acucar - UNICA ( Union of the Industry of Sugar Cane), problems such as inflation, the
economic crisis of 2008 and in special the measure politics of the President Dilma Roussef,
triggered the worst crisis of the sector in its history. Elizabeth affirms that: Only in the last five
harvests, 44 plants closed the door.

Brazil is the first largest producer of sugar cane in the world, and according to the Food and
Agriculture Organization of The United Nations FAOSTAT, Brazil is also the largest producer
of ethanol in the world.

Considering the history of Brazil, the last report of IPCC, the notorious problem with the climate
in the world, it is really difficult to understand why the actual Government isn`t investing in
ethanol. Maybe for this, would be necessary a deeply study of the policies behind the petroleum
industry in Brazil, and who earn with it.