June 20 – 21
International Energy Agency
Paris

Biofuels have had a long history of use in the transport sector. This began in the 1970s and early 1980s when a substantial increase in biofuels production and use in many countries resulted from high oil prices. But biofuels became less competitive vis-à-vis fossil fuels after the collapse of oil prices in the mid-1980s, and global interest in biofuels for transport waned considerably in the 1990s and the first years of the 21st century.

The recent sustained increase in international oil prices has once again highlighted the potential for biofuels to contribute to transport fuel demand, particularly in countries that import the bulk of fossil fuel supplies. Global concerns about the effects of fossil fuel use on the environment, as well as recognition of the benefits of energy supply diversification also support increasing biofuels production and use.

The seminar explored the near-term and longer-term global prospects for biofuels for transport, focusing mainly on the development of new markets. The Brazilian model for development of a national biofuels market was highlighted, as well as the perspective from other countries. Theseminar also explored the elements of a sound national strategy, and addressed not just the biofuelsfor transport angle—as critically important as that is—but also the socio-economic/sustainabledevelopment component which involves, among other matters, rural community development, environmental impacts, income generation, and the hard/foreign currency potential. Finally, the seminar sought to clarify the opportunities for international cooperation to expand biofuels production and use on a cost-effective, environmentally sustainable basis.

Agenda: Session 1 | Session 2 | Session 3 | Session 4 | Session 5 | Session 6

8.30 – 9.00 Registration
9.00 – 9.15 Welcome Remarks: Claude Mandil, Executive Director, IEA
9.15 – 9.40 Keynote Address: Honorary Professor Ignacy Sachs, School of Superior Studies in Social Sciences, Paris

Session 1
Situation Analysis

The session provided context for the seminar. It highlighted IEA projections for energy demand, CO2 emissions, and costs to 2030, focussing on scenarios for biofuels production and use. The session also laid out a framework for expanding biofuels production based on current and potential policies and measures. The discussion focussed on feedstock potential to displace motor gasoline and diesel demand. Particular emphasis was placed on oil-importing countries which are adversely affected by high oil prices and oil price volatility.

Moderator:
Rick Sellers, Head, Renewable Energy Unit, IEA

“IEA assessment of future transport fuels use and biofuels potential”
Lew Fulton, Transport Energy Specialist, IEA


“Global biofuels potential and costs”
Andre Faaij, Utrecht University, Copernicus Institute for Sustainable
Development

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Session 2
The Brazilian Experience

The session presented the perspective of Brazil on its development of ethanol
production and use since the first oil crisis, and highlighted lessons learned.
Speakers addressed policies, oil price effects, agricultural markets and the
interaction of supply and demand in the ethanol, sugar and transport fuels markets. The session also included perspectives from the auto and transport fuels industries in Brazil.

Moderator:
Ambassador Sergio Amaral, Brazilian Ambassador to France

Keynote Address: “The Importance of Biofuels”
Honorable Roberto Rodrigues, Minister of Agriculture, Brazil


“Market perspective”
Luiz Corrêa Carvalho, Chairman of the Brazilian Sectorial Chamber
of Sugar and Ethanol, Ministry of Agriculture, Brazil


“Industry perspective”
H. Ruete De Oliveira, CEO, Copersucar


“Environmental dimension”
Luiz Gylvan Meira Filho, Institute of Advanced Studies, University of Sao Paolo


”International trade perspective”
Sergio Trindade, President, SE2T International, Ltd.


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Session 3
Building National Strategies

This session looked at the separate elements of a national biofuels strategy:
designing a national cost-benefit analysis, creating a proper regulatory and policy framework, and establishing national environmental standards. Presenters were asked to address the socio-economic/sustainable development component including rural community development, environmental impacts, income generation, and the hard/foreign currency potential.

Moderator:
Fabrizio Donini-Ferretti, Head of Energy, Dexia Credit Local

“A cost-benefit approach for biofuels markets”
Boris Utria, Senior Economist, World Bank


“Best-practice biofuels production”
Gustavo Best, Senior Energy Coordinator, UN FAO


“Developing a sound national biofuels policy framework”
Francis Johnson, Research Fellow, SEI


“Towards rural community development and energy self-sufficiency”
Honorable Viset Choopiban, Minister of Energy, Thailand


“Establishing environmental standards”
Uwe Fritsche, Coordinator, Energy & Climate Division, Institute for Applied
Ecology, Germany

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Session 4
National Perspectives on Biofuels

The session provided an opportunity for a structured roundtable on biofuels
perspectives. Led by two dynamic moderators, the session elicited views on the barriers and opportunities for developing biofuels sectors, and what assistance might prove helpful to achieving each country’s aspirations. The perceived benefits of establishing a national programme for biofuels use for electricity generation and household energy supply to complement transport use were also emphasised.

Moderators:
Daniel Ugarte, Associate Director of the Agricultural Policy Analysis
Centre, University of Tennessee

Lucas Assuncao, Coordinator Climate Change & BIOTrade
Programmes, UNCTAD

AFRICA
Ghana:
• Minister of Mines & Energy, Hon. Mike Oquaye

Kenya:

• Deputy Minister for Environment and Natural Resources, Hon. Kamama Asman Abongotum

• Ambassador to France, Her Excellency Raychelle Awuor Omamo

Zambia:
• Deputy Minister of Energy and Water Development, Hon. Sebio Mukuka
ASIA
Philippines:
• Ambassador to France, His
Excellency Hector Villarroel

Thailand:
• Minister of Energy, Honorable
Viset Choopiban

Working dinner at the Hotel Hilton Paris with keynote speaker Ms.
Suani Teixeira Coelho, Deputy Secretary of Environment, State of São Paulo and Head of CENBIO, the Brazilian Reference Center on Biomass, University of São Paulo.

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DAY 2
21 June 2005

Session 5
Infrastructure & Investment
This session looked at issues related to transforming the industrial infrastructure, including modifying the auto fleet and the fuel distribution system. It addressed implications for fuel distribution networks (addressing fuel production, changes required for distribution systems, fuel standards, and customer attitudes.) The session also focussed on the scale and requirements of attracting the necessary investment.

Moderator:
Duncan Eggar, Senior Business Advisor - Sustainable Mobility, British Petroleum

“Experience with flex-fuel vehicles”
Henry Joseph, Jr., Manager of Engine Tests and Emission Labs, Volkswagen
Brazil and Director of the Brazilian Automobile Manufacturers Association

“Vehicle compatibility with biofuels”
Gerard Belot, Director of Strategic Product Group, PSA Peugeot Citroen

• “An oil company perspective”
Sergio Antônio Monteiro Fontes, Manager, Petrobras

“The ethanol distribution infrastructure”
Jean Cadu, Biofuels Development Manager, Alternative Fuels, Shell
International, Ltd.

• “New technologies for expanding biofuels markets”
Clifford Spencer, Chairman, Springdale Group

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Session 6
The Way Forward and Next Steps

The closing session was led by an expert panel. The discussion focussed on
opportunities and options for international cooperation, resulting in the development of a solid foundation for increased production and use of biofuels. Following the discussion, the moderator entertained suggestions from the participants about practicable next steps.

Moderator:
Reid Detchon, Executive Director of the Energy Future Coalition,
UN Foundation

Panel:
• Sergio Amaral, Brazilian Ambassador to France

• Ashok Khosla, President, Development Alternatives, India

• Dr. Mersie Ejigu, President and CEO, Partnership for African Environmental
Sustainability

• Neil Hirst, Director, Energy Technology Office, IEA

Closing Remarks Ambassador William C. Ramsay,
Deputy Executive Director, IEA


For more information, please contact:

James D. Spellman, (202) 887-9040. jspellman@unfoundation.org.

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Biofuel increasingly competitive if oil surge lasts
Reuters
6.23.05

Time to clean up? The climate is looking healthy for investment in green technology
Financial Times
6.22.05

New Opportunities for Biofuels
International Energy Agency
Press Release

6.21.05

More news

Session 1:

“IEA assessment of future transport fuels use and biofuels potential”
Lew Fulton
Transport Energy Specialist, IEA

“Global biofuels potential and costs”
Andre Faaij
Utrecht University, Copernicus Institute for Sustainable
Development



Session 2:

Keynote Address: “The Importance of Biofuels”
Honorable Roberto Rodrigues

Minister of Agriculture, Brazil

“Market perspective”
Luiz Corrêa Carvalho
Chairman of the Brazilian Sectorial Chamber
of Sugar and Ethanol, Ministry of Agriculture, Brazil


“Industry perspective”
H. Ruete De Oliveira
CEO, Copersucar

“Environmental dimension”
Luiz Gylvan Meira Filho Institute of Advanced Studies, University of Sao Paolo


”International trade perspective”
Sergio Trindade, President, SE2T International, Ltd.

Session 3:

“A cost-benefit approach for biofuels markets”
Boris Utria
Senior Economist, World Bank

“Best-practice biofuels production”
Gustavo Best
Senior Energy Coordinator,
UN FAO

“Developing a sound national biofuels policy framework”
Francis Johnson, Research Fellow, SEI

“Towards rural community development and energy self-sufficiency”
Honorable Viset Choopiban Minister of Energy, Thailand

“Establishing environmental standards”
Uwe Fritsche
Coordinator, Energy & Climate Division, Institute for Applied
Ecology, Germany



Session 5:

“Experience with flex-fuel vehicles”
Henry Joseph, Jr.
Manager of Engine Tests and Emission Labs, Volkswagen
Brazil and Director of the Brazilian Automobile Manufacturers Association


“Vehicle compatibility with biofuels”
Gerard Belot
Director of Strategic Product Group, PSA Peugeot Citroen

“The ethanol distribution infrastructure”
Jean Cadu
Biofuels Development Manager, Alternative Fuels, Shell International, Ltd.

Session 6:

“Assessing the Biofuels Option
Ashok Khosla
President, Development Alternatives, India

“The Biofuels Option: The Way Ahead: Some Thoughts”
Dr. Mersie Ejigu
President and CEO, Partnership for African Environmental
Sustainability


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