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Figure 23: World Ethanol and Biofuel Production Forecasts; 2010 - 2016 600 500 400 300 200 100 0 Rest Latam Brazil Argentina Europe Rest World Asia USA Biofuel 2010 2016 Ethanol 2000 1500 1000 500 0 Other Latam Brazil USA Rest of world 2010 2016 Source: IEA World Energy Outlook Ethanol and biodiesel industries in Latin America have not been free of controversy. The main criticism centers on the threat of deforestation in the Amazon region and destruction of the Cerrado, Brazil’s savannas. However, most of the deforestation in the Amazon comes from cattle ranching, subsistence farming, and illegal logging. Large infrastructure projects such as roads, hydroelectric dams, and electricity transmission lines also increase deforestation. The Amazon is not suitable for sugar cane production. However, the region could be indirectly affected as cattle ranchers sell their land in other areas, such as the Cerrado, for use as sugar mills—then expand their activities into the Amazon. This issue is more relevant to the rapid expansion in the Cerrado of biodiesel producers using soy beans. In Colombia, criticism has surfaced over human rights abuses associated with land expropriation by African palm producers. Colombia’s biodiesel industry is concentrated in the Urabá, a rainforest area close to Panama and inhabited by Afro-Colombians. Human rights activists have denounced the presence of paramilitary forces that dislocate peasants from land that is then used by African palm growers. The industry also appears to have little concern for the long-term environmental impact that occurs when a tropical rainforest is turned into a large monoculture plantation. As food prices spiked in 2008, the biofuel industry was also accused of contributing to global hunger because of concerns that food crops were being replaced with biofuel crops, driving up food prices. But factors contributing to food price inflation are numerous. Demand for food is expected to grow rapidly as a result of the wealth impact of a larger middle class in emerging economies. At the same time, agriculture expansion could be blocked by i) expanding urban areas and suburban sprawls; ii) climate change; iii) growth of national parks; and iv) production of biofuels. 28 thousand barrels per day thousand barrels per dayPDF Image | Infrastructure and Environment Department
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