Brazilian president proposes to include biofuels in Millennium Development Goals to reduce poverty

Brazil's president Luiz Inácio Lula da Silva has launched the proposition [*Portuguese] to include a biofuel mandate in the Millennium Development Goals (MDGs) as a way to alleviate poverty in Africa. He expressed the idea during the presentation of the latest data which show that Brazil succeeded in reducing extreme poverty in the country by half, surpassing the UN's target. The link between poverty reduction, the MDGs and biofuels is very much present in the leader's global vision on development.

Lula said that when the wealthy countries start utilizing biodiesel and ethanol on a large scale, this should happen with the participation of Africa, where biofuel production is set to bring unprecedented opportunities for development. To do so, a mandate should be included in the UN's Millennium Development Goals - a set of eight ambitious targets aimed at reducing poverty by half by 2015.

Global biofuel production should be included in the framework of the MDGs: all countries should aim for a target of introducing 20 per cent ethanol or biodiesel by 2015 to 2020. [...] Africa's problem is that it has much to offer, but little money to invest. For this reason I am a strong proponent of a biofuel program that links the global transition towards renewables with the opportunity to generate employment and incomes in Africa. - Luiz Inácio Lula da Silva, President of Brazil

Earlier this month the Brazilian government participated in a high level meeting with the African Union and the UNIDO to discuss the challenges and opportunities presented by biofuels on the continent. A panel of African scientists there concluded that biofuel development may help reach the MDGs (earlier post). Without access to abundant and modern forms of energy, social and economic development is impossible. Energy economists have therefor called for more attention to energy economics in international development efforts (e.g. A Place for Energy Poverty in the Agenda? [*.pdf] by the IEA's chief economist, Fatih Birol). Likewise, the director-general of the UN's Food and Agriculture Organisation (FAO) said biofuels offer an historic chance to lift African countries out of poverty, because they offer unprecedented employment opportunities while providing that most necessary of goods: energy. However, changes in the current global trade regime are needed to achieve these benefits (previous post). The Worldwatch Institute for its part recently made the case that biofuels will help cut undernourishment in the poorest countries - a clear Millennium Development Goal.

President Lula hinted at the positive contribution to poverty alleviation of the Pro-Biodiesel program initiated in Brazil in 2003. In 2005, a biodiesel mandate was introduced requiring a 2% blend by 2008 and 5% by 2010. The program is based on the inclusion of the poorest rural households, who produce feedstocks under a 'Social Seal'. This system gives incentives to biofuel producers who source this feedstock (earlier post). Some 65,000 of the poorest farmers and their families are so far benefiting from the program.

The Brazilian president, enjoying his last term, wants to replicate the model in Africa and has launched several South-South initiatives to do so. But the real potential for African countries is to participate in a global market. Africa has all the necessary resources - abundant land, labor in need of income and employment, a huge rural population that needs to diversify its crop portfolios and needs new markets, and suitable agro-climatic conditions for a range of biofuel crops - but it lacks capital. Coupling the wealthy country's needs to Africa's potential would thus present a win-win case. The instrument of the Millennium Development Goals offers a way to ensure that the idea is implemented in a sustainable way that strengthens the goals.

Lula made the suggestion during his presentation of the Third National Report on the MDGs, which showed that the country had succeeded in meeting the goal of reducing extreme poverty by half. The MDGs include a global partnership for development with Brazil for the first time becoming a net donor of development assistance. The country wrote off around US$400 million of Africa's debts:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: poverty alleviation :: rural development :: energy security :: Millennium Development Goals :: Brazil :: Africa ::

According to projections by the Brazilian government, the country will succeed in reaching the other MDGs well before the stated year of 2015. These include eradicating extreme poverty, providing basic education to all, boosting gender equality, reducing child mortality, improving maternal health, combating HIV/AIDS and malaria, ensuring environmental sustainability.

Several organisations have called for the inclusion of energy security and access to energy as a goal, because ultimately, access to energy is crucial for reaching the other goals. Not formally included, many international development organisations now do have energy programs, because the socio-economic impacts of rising prices have proved to be disastrous to the poorest countries. Moreover, biofuels and bioenergy offer one of the most feasible ways to ensure that the global effort to reduce greenhouse gas emissions is undertaken with the participation of developing countries.

References:
Aquidauana News: Lula quer incluir biocombustível entre as metas do milênio - August 29, 2007.

People's Daily: Brazilian president proposes biofuel usage to help reduce African poverty - August 30, 2007.

Ministério do Desenvolvimento Social e Combate à Fome: Pobreza extrema atinge menor índice e Brasil ultrapassa meta da ONU - August 29, 2007.

UN Millennium Development Goals.

Fatih Birol, "Energy Economics: A Place for Energy Poverty in the Agenda?", The Energy Journal, Vol. 28, No. 3., International Association for Energy Economics, 2007.

Biopact: Report: biofuels key to achieving Millennium Development Goals in Africa - August 02, 2007

Biopact: FAO chief calls for a 'Biopact' between the North and the South -
August 15, 2007

Biopact: An in-depth look at Brazil's "Social Fuel Seal" - March 23, 2007