Chapter 5
Brazil Between Bioeconomy Barons
and Grassroots Agroecology
Abstract Despite grand bioeconomy ambitions in this megadiverse country, sugarcane and soy dominate Brazil’s agenda so far. National policies have driven particularly biofuel expansion, consumed essentially in the domestic market. Those policies
have included regulatory and economic instruments such as blending mandates, fiscal
incentives, and public credit to key agroindustries, in addition to public investments
in biofuel R&D, production, and storage infrastructure. This agenda has economically benefited agribusiness, helped substitute fossil fuels, and supported Brazil’s
energy independence. However, by relying only on a few industrial monocultures,
this expansion has also furthered socio-environmental impacts, such as on agrobiodiversity and freshwater resources. Sugarcane-ethanol production has helped increase
large agribusiness’ control over natural resources at the expense of smallholders
and indigenous peoples. Biodiesel chains, in turn, have attempted but broadly failed
to include smallholders, relying in the end mainly on soy. The prevalence of these
production patterns reflects the dominance of an agribusiness coalition in governance.
Some critics advocate for structural change towards agroecology, but private agroindustries and like-minded state actors have prevailed thanks to their more considerable
material capabilities, better access to positions of legal authority, and a successful
discourse that promotes large Brazilian agribusiness as working for the national
interest.
Keywords Biofuels · Sugarcane ethanol · Biodiesel · Equity · Governance · Value
chains
Brazil has long been a hub of biofuel and now bioeconomy promotion. With a large
ethanol sector since the 1970s, an expanding biodiesel industry, and coordinated
efforts to export its production model abroad (most notably in Africa), the South
American country is a key player as well as a significant case study for how biofuels
and the bioeconomy may develop. Brazil is the only nation where biofuels account
for more than 10% of the energy used in the transport sector (REN21 2019). From
economic and ecological standpoints, its sugarcane-ethanol is considered the most
efficient biofuel commercially produced from standard crops (Pereira et al. 2019).
The country also pioneered policies to include the rural poor in biodiesel production
chains, and many have regarded it as an example that other developing countries in the
© Springer Nature Switzerland AG 2021
M. G. Bastos Lima, The Politics of Bioeconomy and Sustainability,
https://doi.org/10.1007/978-3-030-66838-9_5
89
Brazil Between Bioeconomy Barons
and Grassroots Agroecology
Abstract Despite grand bioeconomy ambitions in this megadiverse country, sugarcane and soy dominate Brazil’s agenda so far. National policies have driven particularly biofuel expansion, consumed essentially in the domestic market. Those policies
have included regulatory and economic instruments such as blending mandates, fiscal
incentives, and public credit to key agroindustries, in addition to public investments
in biofuel R&D, production, and storage infrastructure. This agenda has economically benefited agribusiness, helped substitute fossil fuels, and supported Brazil’s
energy independence. However, by relying only on a few industrial monocultures,
this expansion has also furthered socio-environmental impacts, such as on agrobiodiversity and freshwater resources. Sugarcane-ethanol production has helped increase
large agribusiness’ control over natural resources at the expense of smallholders
and indigenous peoples. Biodiesel chains, in turn, have attempted but broadly failed
to include smallholders, relying in the end mainly on soy. The prevalence of these
production patterns reflects the dominance of an agribusiness coalition in governance.
Some critics advocate for structural change towards agroecology, but private agroindustries and like-minded state actors have prevailed thanks to their more considerable
material capabilities, better access to positions of legal authority, and a successful
discourse that promotes large Brazilian agribusiness as working for the national
interest.
Keywords Biofuels · Sugarcane ethanol · Biodiesel · Equity · Governance · Value
chains
Brazil has long been a hub of biofuel and now bioeconomy promotion. With a large
ethanol sector since the 1970s, an expanding biodiesel industry, and coordinated
efforts to export its production model abroad (most notably in Africa), the South
American country is a key player as well as a significant case study for how biofuels
and the bioeconomy may develop. Brazil is the only nation where biofuels account
for more than 10% of the energy used in the transport sector (REN21 2019). From
economic and ecological standpoints, its sugarcane-ethanol is considered the most
efficient biofuel commercially produced from standard crops (Pereira et al. 2019).
The country also pioneered policies to include the rural poor in biodiesel production
chains, and many have regarded it as an example that other developing countries in the
© Springer Nature Switzerland AG 2021
M. G. Bastos Lima, The Politics of Bioeconomy and Sustainability,
https://doi.org/10.1007/978-3-030-66838-9_5
89