A report by the Organization for Economic Cooperation and Development (OECD) has stated that Brazilian sugarcane ethanol makes a greater contribution to reducing greenhouse gases than biofuels produced in the United States or Europe.

Entitled Economic Assessment of Biofuel Support Policies, the report states that sugarcane ethanol 'generally reduces greenhouse-gas emissions by 80% or more' in comparison with fossil fuels, whereas biofuels produced from corn, as in the US, tend to reduce emissions by no more than 30%. It goes on to say that biofuels produced from wheat, sugar beet or vegetable oils, as in Europe, rarely provide emission savings of more than 30% to 60%.

The OECD comprises 30 countries, including many of the world's most industrialized nations, but Brazil is not a member.

The report argues that government financial support for biofuel production in OECD countries is expensive – particularly in the US, Canada and Europe – and yet in most cases the results in terms of combating the greenhouse are limited. According to the OECD, biofuel subsidies in the US, Canada and Europe totalled US$11bn in 2006 and are set to climb to US$25bn by 2015.

The report also includes a recommendation that import tariffs on biofuels be reduced.

Source: Embassy of Brazil in London