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UN suggests removal of tariffs on Brazilian ethanol

The United Nations Development Program (UNDP) on Tuesday suggested the removal of tariffs charged by developed countries on the Brazilian ethanol in a bid to reduce the world’s climate change effects.

„The trade barriers and subsidies are, at the same time, elevating the costs with mitigating carbon gas emissions and with reducing dependence on oil,” said the Human Development Report 2007/2008 released by the UNDP in Brasilia. The suggestion was made based on the statistics that the Brazilian ethanol, made from sugarcane, emits 70% less greenhouse gases than fossil fuels, while the ethanol made from corn, produced in the United States, offers only a 13% reduction. The United States and the European Union have imposed barriers on Brazil’s ethanol, which almost doubles the price to consumers in those countries, according to Brazilian producers.

Brazilian President Luiz Inacio Lula da Silva said in a document attached to the report that the use of ethanol in transportation reduces carbon gas emission by approximately 25.8 million tons per year in his country. „Our aim is to increase the offer of bio-diesel by 5% in Brazil up to the year 2013,” said the president. The report highlighted that Brazil holds the fifth lowest emission rate per capita among the 70 countries with the highest human development indices, which was 1.8 ton per inhabitant in 2004, 60% lower than the world’s average of 4.5 tons. (