Sustainability of biofuels in Latin America: Risks and opportunities

Several Latin American countries are setting up biofuel programmes to establish alternative markets for agricultural commodities. This is mainly triggered by the current success of Brazilian bioethanol production for the domestic market and for export. Furthermore, the global biofuel market is expected to increase due to ambitious biofuel programmes in the EU and in the USA. Colombia, Venezuela, Costa Rica and Guatemala are focusing on bioethanol production from sugarcane whereas biofuel production in Argentina is based on soy biodiesel. Recent developments of the biofuel sector take place extremely rapid especially in Argentina, which became one of the five largest biodiesel producers in the world in 2008. Till date no specific biofuel sustainability certification systems have been implemented in Latin American, as well as on global level. This fact and the predominant use of food crops for biofuel production raise concerns about the sustainability of biofuel production related to environmental and social aspects. This paper provides an overview of the hotspots of conflicts in biofuel production in Latin America. It investigates presently available sustainability tools and initiatives to ensure sustainable biofuel production in Latin America. Finally, it provides an outlook on how to integrate sustainability in the Latin American biofuel sector.

Research Highlights
► This study investigates risks and opportunities of biofuels in Latin America.
► Latin American countries are setting up programmes to promote biofuel development.
► Strong biofuel sectors provide opportunities for economic development.
► Potential negative impact includes deforestation and effects on food security.
► Sustainability initiatives exist to minimise negative impact.