Biofuels conference under way

Published November 19, 2008

SAO PAULO, Nov 18: An international conference on biofuels involving officials from 40 countries has begun, with delegates deliberating over issues in development, food security, trade and climate change.

Brazilian government chief-of-staff Dilma Roussef opened the five-day event as a last-minute stand in for President Luiz Inacio Lula da Silva.

Brazil is keen to see ethanol — the carburant derived from processing organic materials — used more frequently in vehicles, and aircraft, around the world.

The South American country is the biggest exporter of ethanol, which it makes from sugarcane, and the second-biggest producer, after the United States.

The plummeting price of oil in recent weeks, however, has cast a shadow over prospects of boosting ethanol exports.

A lower price for gasoline undermines the argument for biofuels.

There is also a lingering debate over food prices spiking because of increased farming of biofuel crops at the expense of traditional food crops.

The conference started with three days of technical discussions before ministers took over for the final two days. No resolutions are expected from the event.

The cost of labour in sugarcane fields should not be overlooked when promoting the virtues of ethanol, the Roman Catholic Church said in a statement coinciding with the opening of the conference. —AFP

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