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#6. Géraldine Kutas: We’re Optimistic about Sugarcane Ethanol in Europe

10.26.16 | Podcast | By:

Recently I talked to Géraldine Kutas, Head of International Affairs & Senior International Advisor to the President for the Brazil Sugarcane Industry Association (UNICA) about the future of sugarcane ethanol in Europe. Here’s a few highlights from the discussion.

On UNICA’s Reaction to the European Commission’s Low Emission Mobility Strategy:

“Well, we are obviously disappointed in the Commission’s Low Emission Mobility Strategy, as you can imagine. As we have stated before on many occasions, the Commission has a ‘black and white’ approach to biofuels.  According to the EU institutions, first generation biofuels are all so bad that they need to be phased out after being capped at 7% in the ILUC Directive or they are all so good, as in the case of advanced biofuels, that they need to be extra promoted. And for the Commission, there is no in between. We think this is not true. There are good conventional biofuels, and sugarcane ethanol is clearly one of them. It reduces emissions by more than 70%, it has no impact on food prices, and it is certified according to criteria that have been set. It is well documented that not all biofuels are created equal. The Commission must have the political courage to make the distinction between conventional biofuels.”

On What’s Behind the Commission’s “Black and White” View of Biofuels:

“I think it’s a political issue, honestly.  The policy was created in 2003, our biofuels policy, and it supported all biofuels. Now it’s difficult for them to make a distinction among them. But they could have taken a different approach, like in the U.S. where you don’t have a distinction in the production methods but it’s rather on the GHG emissions. Because at the end of the day, why are we using biofuels? It’s to decarbonize the transport sector. So what really matters is the greenhouse gas emission performance, not production.”

On the Future of Sugarcane Ethanol in Europe:

“We are still optimistic about the future of sugarcane ethanol in Europe. Our main problem today is the import tariff which is 90 cents Euro per liter. It’s not the EU legislation. Personal transport is important, but there are other applications for ethanol. You can use it in heavy transportation, for instance, in Scania heavy-duty trucks, you can use it in the chemical industry, you can use it in bioplastics. We still think there is a future for sugarcane ethanol in Europe. We will be very active in Europe in the coming months to demonstrate that it would be a mistake to phase out conventional ethanol.”

On the Emergence of Electrification and What That Means for Sugarcane Ethanol (and Biofuels Generally):

“Well, let’s be clear: I think electrification is here to stay, there’s no doubt about this. But we think this not a matter of whether need electrification OR biofuels, but rather how we can combine electrification and biofuels. We don’t think they are mutually exclusive, but rather they can complement each other. Studies show the dominant technology in the coming years is going to be hybrid cars and not pure electric cars. The great majority of hybrid cars will run on gasoline, instead of diesel so ethanol will still be key to decarbonizing transport in personal vehicles. On top of that, electrification is not an option for all types of transportation, and this is the case for heavy duty transportation, for instance. Ethanol can play a significant role here.”

On the Potential Reversal of Dieselization:

“I think there is a reversal of the trend. It takes time because the renewal of the fleet is slow and policies in member states are different. Some member states have already moved toward more equal taxation between gasoline and diesel, and some have not. But I think it’s a clear trend. And the other thing is that I think the consumer is much more aware of the emissions problem, air pollution problem and many people are now buying gasoline cars. So I think we are seeing a reversal of the trend. It will take time, but it will happen. This is a great opportunity for ethanol. Sugarcane ethanol is the best performing of the conventional biofuels. So if we really want to decarbonize transport, we should favor sugarcane ethanol.”

 

 

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