STAVROS AFIONIS The Hague (April 2013). Presentation Outline The EU – Brazil partnership Legal and trade issues Indirect land-use change Highly.

Legal issues in EU-Brazil biofuels cooperation

STAVROS AFIONIS

The Hague (April 2013)

Presentation Outline The EU – Brazil partnership

Legal and trade issues

Indirect land-use change

Highly biodiverse grasslands

Trade barriers

Conclusions

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The EU’s partnershipsThe 2003 European Security Strategy (ESS)

Existing partners

United States JapanCanadaBrazilChinaIndiaMexicoRussiaSouth Africa

Potential partners

EgyptIsraelIndonesiaPakistanUkraineSouth Korea

The EU – Brazil partnership

Established in 2007

1st Joint Action Plan (JAP) in 2008

2nd JAP in 2011 (to last until 2014)

Over 20 sector dialogues Summits

2007 Lisbon2008 Rio de Janeiro2009 Stockholm2010 Brasilia2011 Brussels2013 Brasilia

1) Energy2) Environment and Climate Change3) Information Society4) Maritime Transport5) Satellite Navigation - “Galileo”6) Science and Technology7) Culture8) Education

a.) Tradeb.) Environment

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The EU – Brazil partnership Agenda dominated by trade issues

Brazil is the EU’s 10th trading partner (2.2%)

EU is Brazil’s main trading partner (22%)

Main issues

A. EU – MERCOSUR trade agreement

Negotiations collapsed in 2004, re-launched in 2010

B. Liberalization of EU agricultural market

Negotiations in progress (WTO Doha Round)

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EU and biofuels

A. Directives

Biofuels Directive (2003)

Renewable Energy Directive (2009)

Targets a.) 2% by 2005b.) 5.75% by 2010

10% by 2020

B. Sustainability criteria.1. GHG emission savings of at least 35% (rising to 50% in 2017)

2. Feedstock not to be derived from land with high biodiversity value

3. Feedstock is not to be derived from land with a high carbon stock

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EU, Brazil and biofuels

Issues

Indirect land-use change (iLUC)

Definition of “highly biodiverse grasslands”

Trade barriers

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Indirect land-use change (iLUC)

Source: Fehrenbach et al, 2008. “Criteria for a Sustainable Use of Bioenergy on a Global Scale” UBA-FB Report 206/41/112, p. 51.

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Indirect land-use change (iLUC)

• Brazil acknowledges scientific consensus on iLUC

• Science has progressed, but models still in infancy

• More science needed – Brazil satisfied with 2nd draft

• The 5% cap is inadequate

• What does Brazil propose?

• US process much more transparent

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Highly biodiverse grasslands

Definition expected since 2010

Vital issue for Brazil

Brazil to expand sugarcane plantations in pasture land

2nd sustainability criterion

a) Primary forestb) Natural protected areac) Highly biodiverse grassland

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Highly biodiverse grasslands

• Concept invented as a result of an intra-EU compromise

• Definition a complicated issue – several drafts rejected

• Agreement possibly reached this month

• Why has it taken so long:

Challenging task

Intra-EU repercussions

Brazil surprised…

Highly biodiverse grasslands

Why is this so important to Brazil?

Agriculture expands in pastures

• About 70% of sugarcane plantations

Compliance could be quite costly

• Natural vs. non-natural grasslands

• Need for in situ inspections

Brazil wants the CBD to come up with a definition

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Trade barriersTariffs and subsidies

EU biofuels protectionism

Discussions in several fora

a) MERCOSUR

b) WTO

Barriers bound to be abolished???

supports

uneconomical & energy inefficient production

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Concluding remarks

Partnership has revolutionised bilateral relations

Focus is on trade

iLUC, grasslands and trade barriers top the agenda

Prospects do not appear promising

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THANK YOU

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