GREEN GROWTH: FROM RELIGION TO REALITY - Sustainia
GREEN GROWTH: FROM RELIGION TO REALITY - Sustainia GREEN GROWTH: FROM RELIGION TO REALITY - Sustainia
Chapter 8nally, the Amazonian states of Acre and Amazonas havesought to create markets for sustainably produced forestproducts, and Amazonas has enacted a program to paysmallholders monthly stipends not to deforest (Viana2009; 2010, 38-42).18Conflicts between those who favor development at anycost and those who support conservation and sustainabledevelopment continue, but the programs described above(and in greater depth in Appendix 1) indicate that Brazilis becoming serious about reducing GHG emissions fromdeforestation, and about protecting biodiversity.3.4 Enhancing ranching and agricultural productivityThe alternative to expanding agriculture into new areasis to do more with existing areas. Thus, while federaland state initiatives have helped to reduce deforestation,meeting Brazil’s National Climate Change Plan target ofzero deforestation by 2040 while maintaining the country’sstature as an agro-industrial powerhouse will requirefurther investments in enhancing the productivity of agricultureand ranching. Subsidized credit for inputs suchas machinery and fertilizer have increased productivityin both industries: Some older ranches on the Amazonfrontier have managed to increase their beef productionper hectare (Margulis 2004), and, as figures 2 and 3 show,though the area in the Center-West Cerrado devoted tosoybean production continues to grow, soybean productivityhas also increased steadily from 1,452 kg/hectare in1976 to 3,135 kg/hectare in 2010. A combination of advancesin farming techniques that enabled soybean farmingin the Cerrado in the 1980s, and the fertile virgin soilof that region and the Amazon have contributed to this(Luna and Klein 2006, 120).Increasing cattle and soy productivity is to be celebratedfor its potential to reduce ranchers’ and farmers’dependence on deforestation for expansion, but it is notsufficient to render ranching and farming “green” in themedium run. Indeed, continued increases in productivityand profits in these industries may place stronger pressureson state and federal governments to loosen forestconservation laws.19 Continued government investmentin improving law enforcement in the Amazon region andthe effective implementation of Brazil’s policies to reducedeforestation are necessary to ensure that these sectors’productivity increases do, indeed, lead to reductions inGHG emissions from deforestation.Finally, domestic and international consumers couldhelp to ensure that environmental laws are enforced bydemanding that beef and soybeans be produced sustainably.Some efforts have already begun: “A large Swedishgrocery store chain” (Nepstad et al. 2006, 1600) hasdemanded that Brazilian soybeans meet environmentalcriteria, the U.K.’s National Beef Association called for aboycott of Brazilian beef (ibid.), and international NGOs,producers, and consumers imposed a “soy moratorium”for three years on Brazilian soybeans, from 2006 to 2009(Greenpeace 17 June 2008). In addition, domestic beefretailers in Brazil, such as the supermarket chains Carrefourand Pão de Açúcar, and the meat processors Friboiand Bertim, are seeking to sell beef “produced on ranchesthat obey environmental legislation and use good landmanagementtechniques” (Nepstad et al. 2006, 1600).More effort is needed on this front to promote environmentalsustainability in the beef and soybean industries.In their current states, the agriculture and ranchingindustries present Brazil with a real dilemma between“green” and “growth.” Solving this problem – and achievinggreen growth – means finding a way to decouplegrowth in these industries from rising emissions. Withoutsignificant progress in increasing the productivity ofcattle ranching and soybean farming, enforcing environmentallaws, implementing anti-deforestation policiesresponsibly, and cultivating domestic and internationalconsumer pressures, it is unlikely that Brazil will move18 See Appendix 1 for details onfederal and state environmentalprograms.19 Pressures to loosen conservationlaws are already being felt inthe ongoing acrimonious debatein the Brazilian Congress over revisingthe 1965 Forest Code. Theagribusiness sector would like thelegal reserve requirement (thepercentage of land on private propertyin different biomes that mustbe preserved in its natural state)in the Amazon to be significantlyreduced from its current 80%. Theenvironmental movement and environmentalbureaucracy opposethis change (Noronha 2011). Revisionsto the Forest Code to loosenconservation rules for small-scalefarmers and ranchers passed inthe lower house of Congress on25 May 2011, but are expected tohave a tough fight in the Senate.President Dilma Rousseff is alsoexptected to veto certain provisionsin the legislation, such asamnesty for illegal deforestationon private lands prior to July 2008(Brooks 2011).Soy productivityKg/Hectare per year3.5003.0002.5001.5001.000500Center-West Region AverageMato GrossoFigure 3: Soy Productivity in Center-West and Mato Grosso.Source: CONAB 201190
Chapter 8off of its current track of deforestation-driven increasingGHG emissions.This section has shown how cattle and agribusiness inthe Amazon region drive deforestation, and how throughdeforestation and their own emissions they contribute toabout 80% of Brazil’s total GHG emissions. Brazil’s energysector, discussed in the next section, provides a contrastingperspective on the potential for green growth in Brazil,but there are environmental risks there as well: like cattleand soy, agroenergy production is land use-intensive, andrisks increasing competition for land among differentcrops. This is especially true in the small but growing biodieselsector, which currently extracts fuel largely fromsoybeans and bovine fat (IPEA 26 May 2010, 28). Meanwhile,large hydropower projects in the Amazon threatento flood large tracts of forest and disrupt ecosystems.4 Brazil’s energy generation: A renewablepowerhouse with a possible dark sideBrazil’s energy matrix is remarkably green, with 45.9%of its domestic energy supply provided by renewables in2008 – well above the world average of 12.9% (IPEA 2010,133). As can be seen in Table 1 below, though petroleumand derivatives account for the largest source of energy inthe country, the renewable energy sources of sugar caneproducts and hydroelectricity come second and third,respectively (EPE 2010, 31). This impressive performanceresults from policies enacted since the 1970s thathave aimed to secure Brazil’s energy independence, andgrowth is expected to continue due to recent technologicalbreakthroughs (e.g. flex-fuel cars), global demand forethanol, and government investments in ethanol, biodiesel,and hydroelectric dams.Nevertheless, there is a possible dark side to renewableenergy in Brazil: Growth in the production of ethanolrequires increases in both crop productivity and theamount of land cultivated, which may displace foodcrops (raising the price of food), and force more farmersto move into the Center-West Cerrado by increasing theprice of land in coastal regions, exacerbating deforestationon the Amazon frontier (IPEA 2010, 417). Expandingland area in the Southeast and Northeast of Brazilunder sugar cane cultivation, meanwhile, is expecteddirectly to worsen deforestation in the Atlantic Forest(IPEA 2010, 431-432). Meanwhile, because the major ingredientsin biodiesel are soy and bovine fat, Brazil’s currentinvestments in biodiesel production may increaseAmazon deforestation in the medium run. Finally, largehydroelectric dams, such as the proposed Belo Montedam in Pará, require logging of surrounding lands anddisplacement of local residents, and may have deleteriousdownstream ecological effects from diverting river flows.This section will examine the potential for greengrowth in Brazil’s renewable energy sector. It will firstprofile the share of renewable energy sources in Brazil’senergy matrix. Then, it will analyze growth and environmentalrisks in the ethanol and biodiesel sectors.Finally, it will discuss the environmental tradeoffs ofhydroelectricity.4.1 Profile of Brazil’s energy matrixBrazil has succeeded in providing a large share of itsdomestic energy supply from renewable sources suchas ethanol, biomass, and hydropower – and in the com-Brazilian energy supply by sourceSourcePetroleum,NaturalGas, andDerivativesMineralCarbon andDerivativesHydropowerWood andVegetableCarbonSugar CaneProductsOtherTotalTable 1: Brazilian energy supply by source in 103 tons of oil equivalent (Percentage share of each source in total energy supply).Adapted from EPE (2010, 31-32).Source: MSWord Tables, Brazil: A Country Case Analysis, prepared by Benjamin S. AllenGreen Growth: From religion to reality 91
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Chapter 8nally, the Amazonian states of Acre and Amazonas havesought to create markets for sustainably produced forestproducts, and Amazonas has enacted a program to paysmallholders monthly stipends not to deforest (Viana2009; 2010, 38-42).18Conflicts between those who favor development at anycost and those who support conservation and sustainabledevelopment continue, but the programs described above(and in greater depth in Appendix 1) indicate that Brazilis becoming serious about reducing GHG emissions fromdeforestation, and about protecting biodiversity.3.4 Enhancing ranching and agricultural productivityThe alternative to expanding agriculture into new areasis to do more with existing areas. Thus, while federaland state initiatives have helped to reduce deforestation,meeting Brazil’s National Climate Change Plan target ofzero deforestation by 2040 while maintaining the country’sstature as an agro-industrial powerhouse will requirefurther investments in enhancing the productivity of agricultureand ranching. Subsidized credit for inputs suchas machinery and fertilizer have increased productivityin both industries: Some older ranches on the Amazonfrontier have managed to increase their beef productionper hectare (Margulis 2004), and, as figures 2 and 3 show,though the area in the Center-West Cerrado devoted tosoybean production continues to grow, soybean productivityhas also increased steadily from 1,452 kg/hectare in1976 to 3,135 kg/hectare in 2010. A combination of advancesin farming techniques that enabled soybean farmingin the Cerrado in the 1980s, and the fertile virgin soilof that region and the Amazon have contributed to this(Luna and Klein 2006, 120).Increasing cattle and soy productivity is to be celebratedfor its potential to reduce ranchers’ and farmers’dependence on deforestation for expansion, but it is notsufficient to render ranching and farming “green” in themedium run. Indeed, continued increases in productivityand profits in these industries may place stronger pressureson state and federal governments to loosen forestconservation laws.19 Continued government investmentin improving law enforcement in the Amazon region andthe effective implementation of Brazil’s policies to reducedeforestation are necessary to ensure that these sectors’productivity increases do, indeed, lead to reductions inGHG emissions from deforestation.Finally, domestic and international consumers couldhelp to ensure that environmental laws are enforced bydemanding that beef and soybeans be produced sustainably.Some efforts have already begun: “A large Swedishgrocery store chain” (Nepstad et al. 2006, 1600) hasdemanded that Brazilian soybeans meet environmentalcriteria, the U.K.’s National Beef Association called for aboycott of Brazilian beef (ibid.), and international NGOs,producers, and consumers imposed a “soy moratorium”for three years on Brazilian soybeans, from 2006 to 2009(Greenpeace 17 June 2008). In addition, domestic beefretailers in Brazil, such as the supermarket chains Carrefourand Pão de Açúcar, and the meat processors Friboiand Bertim, are seeking to sell beef “produced on ranchesthat obey environmental legislation and use good landmanagementtechniques” (Nepstad et al. 2006, 1600).More effort is needed on this front to promote environmentalsustainability in the beef and soybean industries.In their current states, the agriculture and ranchingindustries present Brazil with a real dilemma between“green” and “growth.” Solving this problem – and achievinggreen growth – means finding a way to decouplegrowth in these industries from rising emissions. Withoutsignificant progress in increasing the productivity ofcattle ranching and soybean farming, enforcing environmentallaws, implementing anti-deforestation policiesresponsibly, and cultivating domestic and internationalconsumer pressures, it is unlikely that Brazil will move18 See Appendix 1 for details onfederal and state environmentalprograms.19 Pressures to loosen conservationlaws are already being felt inthe ongoing acrimonious debatein the Brazilian Congress over revisingthe 1965 Forest Code. Theagribusiness sector would like thelegal reserve requirement (thepercentage of land on private propertyin different biomes that mustbe preserved in its natural state)in the Amazon to be significantlyreduced from its current 80%. Theenvironmental movement and environmentalbureaucracy opposethis change (Noronha 2011). Revisionsto the Forest Code to loosenconservation rules for small-scalefarmers and ranchers passed inthe lower house of Congress on25 May 2011, but are expected tohave a tough fight in the Senate.President Dilma Rousseff is alsoexptected to veto certain provisionsin the legislation, such asamnesty for illegal deforestationon private lands prior to July 2008(Brooks 2011).Soy productivityKg/Hectare per year3.5003.0002.5001.5001.000500Center-West Region AverageMato GrossoFigure 3: Soy Productivity in Center-West and Mato Grosso.Source: CONAB 201190