The Brazilian sugarcane sector experience: promoting sustainability with adequate tools

Transcription

1 Euroclima Project Seminar CTBE Unicamp JRC The Brazilian sugarcane sector experience: promoting sustainability with adequate tools Luiz Fernando do Amaral Sustainability Manager Campinas, November 30th, 2011

2 ABOUT UNICA The Brazilian Sugarcane Industry Association (UNICA) is the leading sugarcane industry association in Brazil. Its more than 140 member companies, voluntarily engaged, represent over 50% of the ethanol and 60% of the sugar produced in Brazil. In global terms, UNICA represents 13% of the ethanol and 14% of the sugar produced worldwide. Its member companies also produce and sell bioeletricity to the national electricity grid. UNICA s expertise covers key areas including the environment, energy, technology, international trade, corporate social responsibility, sustainability, regulation, economics and communications It has offices in five locations: São Paulo, Brasília, Ribeirão Preto, Washington D.C, and Brussels

3 I. Private sector sustainability programs II. Considerations for scientific research and policy makers

4 I. Private sector sustainability programs II. Considerations for scientific research and policy makers

5 The Green Protocol signed between UNICA and the São Paulo state government is a voluntary agreement to end the use of fire in sugarcane harvesting and to protect riparian areas. Currently, in the state, 60% of the cane is harvested mechanically and 25% of all the riparian areas in the State of SP are protected by the sector. The green protocol Requalification Program for Sugarcane Rural Workers Program to train and requalify 3,000 cane cutters and community members per year for jobs in sugar mills and ethanol plants and to work in other sectors, as a response to the process of mechanizing the sugarcane harvest. It is coordinated by UNICA in partnership with the Union of the Agricultural Workers of São Paulo (FERAESP). It has support from: Case, John Deer, Iveco, Syngenta, Solidaridad and IADB. A trilateral agreement - between Government, Private Sector and Labor Unions - of voluntary participation which sets around 30 better labor practices that goes beyond legislation demand. Positive List of verified companies to be included in the website of the General Secretary of the Presidency of the Republic The National Commitment To improve labor conditions in the sugarcane activity

6 GRI Sustainability Report UNICA was the first agribusiness association in the world to publish a sustainability report following GRI guidelines. In its last version (2010) it achieved an A+ Grade. Dissemination of the practice within the Sugarcane sector: around 75 mills have now their own GRI Sustainability Report! Elaborated by the Sugarcane Technology Center (CTC), the manual was support by the National Waters Agency (ANA) and sponsored by UNICA. More than 90% of the water used in the industry is now recycled and since 2007, UNICA members have reduced their water consumption per ton of sugarcane crushed in 22%. Manual for Water Conservation and Re-use in the sugarcane industry CONSECANA-SP The Council of Sugarcane, Sugar and Ethanol Producers in São Paulo State A bilateral private sector arrangement between sugar /ethanol industry and sugarcane growers, Consecana elaborates a dynamic and transparent model to define the price paid by ton of cane. Subject to revisions of its parameters and improvement of its rules on a regular basis, the objective is to make the revenue of the sugarcane grower is proportional to the industrial revenue. Developed by INPE (National Institute for Spacial Research) and supported by UNICA, Canasat is a remote sensing monitoring system with all the cane areas in the south-center of Brazil, field by field. It is an important sectorial tool for planning and transparency. All the data and maps are freely available at A second phase of the project called Series ( allows for monitoring previous land use patterns.

7 An international multi-stakeholder certification of best sustainability practices UNICA is a member of Bonsucro and sits on the board of directors EU RED recognized Some Bonsucro members 7 brazilian mills certified

8 Lessons from other sectors Forestry products percentage of global managed forested area ( ) Palm oil supply and sales of RSPO-certified palm oil Green coffee percentage of production and world trade (2009) production world trade % Non-certified % Certified Elaboration UNICA. Source: IISD, The State of Sustainbility Initiatives Review 2010 Global market penetration is low, even if all sustainability certifications are summed up. Demand does not follow supply. Huge risk for the long term sustainability of the certification business.

9 Project specific certification initiatives suits some objectives, but not others. There is no silver bullet for the sustainability challenge. There are still challenges outside the scope of a project specific initiatives, as well as challenges outside the scope of international regulations. Different sustainability initiatives and strategies are important for different goals Need to evaluate the best marginal return for each unit of effort

10 I. Private sector sustainability programs II. Considerations for scientific research and policy makers

11 WHAT TYPE OF ETHANOL ARE BIOFUEL POLICIES PROMOTING? (GHG reduction) s-2003 energy cane 2 nd and 3 rd generation 100% mechanical high electricity exports Opportunity cost analysis higher ag. yield mechanical harvest high pressure boilers electricity exports lower ag. yield manual harvest low pressure boilers low electricity exports s LCA => average analisis X iluc => marginal analisis

12 USE OF MOST RECENT AND AVAILABLE DATA

13 BIOELECTRICITY Sugarcane mills produce its own power from cellulosic residues (bagasse) and are increasingly exporting the excess electricity to the national grid. In 2010 more than 1100 average MW were produced, between 2% e 3% of the Brazilian electricity matrix. Cane harvest occurs during the dry-season when hydroelectric reservoirs are low and marginal sources of electricity (such as fossil power plants) are more needed. Complementary nature of sugarcane bioelectricity and hydroelectricity Equivalent to Three Belo Montes hydroelectric plants Source: Nivalde J. de Castro et. al. From CCEE and EPE.

14 CARBON STOCKS Semi-perenial crop (replanted only every 5-7 years) Source: CTC Available at:

15 CONSIDERATIONS OF LOCAL POLICIES IN MODELING EXERCISES

16 SUGARCANE AGROECOLOGICAL ZONING IN BRAZIL 1. It does not allow sugarcane production to expand close to the most sensitive biomes Amazonia and Pantanal. 2. It does not allow sugarcane production to expand on any type of native vegetation (Cerrados, Campos, etc.) 3. Authorized areas for sugarcane expansion: 64.7 mn hectares, equivalent to 7.5% of the Brazilian territory (Currently 0.9% of the area is used for sugarcane)

17 BRAZILIAN PUBLIC POLICIES ON CLIMATE CHANGE National Climate Change Plan and Policy Targets to reduce deforestation: no illegal deforestation Increase in the share of biofuels in the transport sector Maintain high participation rates of renewable energy in the power sector ABC Plan (Low Carbon Agricultural Plan) Target A: To recover 15 million hectares of degrated pastures until 2020 UNICA seats on the Managing Board of the National Climate Change Fund State Climate Change Policy of São Paulo Positive incentives: sectoral agreements to reduce emissions and voluntary public registry of emissions associated with benefits (e.g. advantages to obtain environmental licensing, public finance and others) Overall target for SP State: 20% CO2 emissions reduction by 2020 (2005 baseline) Possible sectoral targets to be defined UNICA seats on the State Council on Climate Change Municipal Climate Change Policy of São Paulo Overall target for the city: 30% CO2eq emissions reduction by 2012 (2005 baseline) Public Transportation: Annual 10% reduction in the use of fossil fuels. Ethanol-powered bus as an important tool to achieve this target. UNICA supports the project that introduced the first 50 brazilian ethanol-powered buses in the city.

18 Thank you