Wednesday, June 18, 2008

A month of Minc

A month after the sudden and dramatic resignation of Marina Silva as Brazil’s environment minister, it is still early days to assess the performance of her successor Carlos Minc, especially as he only formally took office nearly two weeks after her departure. But if anyone thought the new man would bide his time and ease himself gradually into the controversies that prompted Ms Silva’s exit, Minc has proven them dramatically wrong.

Responding to the unplanned change of environment ministers, President Lula insisted there would be no change in government policy on the environment. One month on, it does seem that the course steered by the Environment Ministry (MMA) remains roughly in the same direction. But a very different type of captain is at the helm.

Marina Silva, while adored and almost worshipped by the environmental movement, remained a somewhat aloof figure, giving few interviews to the media, and usually choosing to fight her many battles with government colleagues behind closed doors rather than in the public spotlight.

Minc has proven to be the very opposite, a down-to-earth Carioca reluctant to swap the beaches of Rio for the dry political landscapes of Brasilia – and not even waiting for his appointment to be officially confirmed before pronouncing in public on environmental licensing, deforestation and just about any other subject he could think of. And he has barely kept his mouth shut to the media ever since.

An early indication that Carlos Minc was not going to shy away from contoversy came in a very public war of words with the governor of Mato Grosso and soya magnate Blairo Maggi – Minc anticipated the publication of the figures for Amazon deforestation in April to warn the public that they would be bad, and that Mato Grosso would once again top the list of deforesting states. The response from Maggi was less than complimentary.

Minc also burst onto the scene with a string of new ideas, including that of a national “environmental force” to strengthen protection of Brazil’s forests and other ecosystems. He has since elaborated on that to propose a contingency force of firefighters and military police, both under control of the state governors, along the lines of the national security force set up after long negotiations to deal with emergencies, including last year’s upsurge of gang violence in Rio de Janeiro. In Brazil’s complex power play between the functions of state and federal authorities, Minc is walking into a potential minefield here, and he knows it.

Add to all this new, expanded targets for protected areas in the Amazon, and a stepping up of the “Arc of Fire” operation against illegal deforesters started during Marina Silva’s time in office, and Minc has left observers almost breathless trying to keep track of his latest statement or announcement.

What is still not clear, however, is how much of the frenetic activity of his opening weeks will result in solid measures to protect the environment, and what the changeover in ministers really means for the direction of government policy. For this reason, many of those in the NGO sector are understandably reluctant to commit themselves at this stage with an opinion on Minc’s performance so far.

Another reason is that the early signals about life under Minc can seem a little contradictory. For example, according to the director of environmental policy at Conservation International, Paulo Gustavo do Prado Pereira, among the positive signals to emerge from Minc’s brief tenure is his defence of the existing Forest Code, which stipulates that in the Amazon region, landowners must leave at least 80% of their property as natural vegetation – a rule which has come under strong attack from the rural lobby in Congress, generating speculation that it would soon be changed.

On the other hand, as the Instituto Socio-Ambiental (socio-environmental institute) points out, one of the first decisions Minc made in office was in effect a concession to the rural lobby in general and to Blairo Maggi in particular, despite the bad-tempered rhetoric the two men had exchanged in public. He clarified (or weakened, depending on your viewpoint) a key anti-deforestation measure to deny credit to landowners found to have infringed environmental regulations – stipulating that it applied only to areas officially considered within the Amazon forest biome, and excluding those areas in the transition zone between the Cerrado, or savanna, and the Amazon. The practical result of this measure will be to keep the lines of credit open to many farmers in Mato Grosso, whether or not they have been observing environmental laws.

Another area in which Minc’s tendencies are difficult to read is the question of environmental approval for major infrastructure projects, perhaps the biggest single issue that had got Marina Silva into trouble with government colleagues and created the frustration which led to her resignation. It was another subject on which he pronounced before he was even confirmed in the job, saying that rigor in the assessment made of the environmental impacts of a project should be combined with much less bureaucratic procedures and a speeding up of the approval process. This had been one of Minc’s priorities as state environment secretary of Rio de Janeiro, and something he has since followed up with the new directorate of the environment agency Ibama.

According to the campaigns director for SOS Mata Atlântica (Save the Atlantic Forest), Mario Mantovani, the setting of specific targets inside which environmental licences should be issued is the one negative point so far in Minc’s performance: “These are targets that can’t be met, because there are lots of bad projects out there – so he is taking a risk here,” says Mantovani.

On the other hand, according to Mantovani, Minc is a skilled negotiator and he is broadly optimistic that he will prove a good minister – but will face the same pressures from inside government that caused Marina Silva’s downfall.

“ Minc has one great merit: he’s been in the media since the day he arrived, drawing attention to environmental issues. Now he has to show what he is able to do in practice,” Mantovani adds.

Paulo Gustavo Pereira of Conservation International is also generally positive about Minc’s period of office, although he says it is too soon to say whether he is optimistic or pessimistic. He argues that Marina Silva’s policies on conservation will continue under Minc, with Lula’s support, because “Brazil fears damage to its image abroad, and consequent damage to its agricultural business, especially biofuels.”

Minc himself gave perhaps the best clue to his style of operating when he said, early on, that his strategy was a kind of political choreography, “Two steps forward, two steps back” (in Portuguese, Dois pra lá, dois pra cá) – for example for every two licences issued, create two new parks.

For some, this is risky pragmatism, for others a good strategy for getting things done within the limits of what is possible. Whichever way, the new man attempting to steer Brazil’s environmental policy through some very rough waters should give us all an intresting ride.


This article was written for the website www.oeco.com

Saturday, June 14, 2008

Ethanol and the Invisible Ecosystem



Anyone who has been following closely the recent arguments about the ethanol boom and the expansion of sugarcane plantations in Brazil will be familiar with this map. Drawn up by the powerful sugar producers’ union of São Paulo state (UNICA), it is regularly used in presentations by supporters of the industry to demolish the claim that this biofuel is threatening the rainforest.

Pointing to the “sensitive biomes” of the Amazon and the Pantanal (the largest inland wetland on Earth), the map shows that the concentration of sugarcane production and ethanol plants is a safe distance from both. It is a compelling visual demonstration, until you ask the question: what is all that white space in the middle of the map?

The answer, it turns out, is the Cerrado, or Brazilian woodland-savanna. One of the world’s 34 biodiversity hotspots as defined by Conservation International (CI), it is home to 4,400 plant species that occur nowhere else in the world, 10 threatened endemic bird species, and a range of charismatic mammals including giant anteater, giant armadillo, jaguar and maned wolf. It has also, according to CI, lost nearly 80 per cent of its original vegetation, which is why it qualifies as a hotspot (the Amazon, which has only lost some 16%, does not).

Looked at this way, the map seems somewhat less than reassuring as a guarantee of the environmental sustainability of sugarcane and its current focus of expansion in Brazil. Which is why it was a surprising choice for inclusion in a report and presentation on the industry by the Brazilian affiliate of one of the world’s best-known wildlife organisations, WWF-Brasil.

The WWF report, sponsored by the Government of the Netherlands, originally set out to analyse the expansion of the Brazilian sugarcane sector in the context of the declining subsidies for sugar production in the European Union (EU). Made inevitable because of successful challenges in the World Trade Organisation (WTO) by Brazil and others, the gradual liberalization of the sugar trade regime will allow Brazilian sugar to compete more fairly on the world market, attracting higher prices without the distorting impact of EU subsidies.

As the study developed, however, the sugar issue was overshadowed by the extraordinary boom in ethanol production, with the Brazilian sugar-alcohol industry attracting massive international interest – both positive and negative – for its unrivalled technological experience and capacity to increase production in the era of astronomical oil prices and concern about fossil fuel impacts on global warming.

In its conclusions, presented at one of a series of debates on biofuels at the University of São Paulo, the WWF report shows a curious contrast between the “headline” judgements – overwhelmingly positive – and some of the detailed analysis, which points to the need for significant strengthening of existing safeguards to prevent environmental harm and threats to food security in particular regions.

On the big picture, the co-ordinator of WWF-Brasil’s agriculture and environment policy, and principal author of the report, Luiz Fernando Laranja da Fonseca, presented an analysis which differed little from that regularly set out by the Brazilian government and by the sugar-alcohol industry itself.

Essentially, the analysis attempts to shoot down two principal “myths” about biofuels expansion in Brazil prevalent in international circles, and particularly in Europe. First, that it threatens sensitive ecosystems like the Amazon (that map appears at this point on the Powerpoint presentation), and second that it contributes to the current world food supply crisis. On the second point, the argument used is that sugarcane occupies a small proportion of agricultural land, dwarfed by crops such as maize (corn) and soya (soybeans), and that there are vast tracts of degraded cattle pasture that provide more than enough spare capacity to expand both food and biofuels production.

The WWF report argues that at this “macro” level, the negative impacts of sugarcane expansion are low, and that there are significant benefits to the climate from using one of the world’s most energy-efficient forms of biofuels production – made even more efficient by the growing use of the woody crop waste known as bagasse to generate electricity.

When it comes to potential regional impacts, however, the report paints a very different picture, especially regarding the Cerrado. It cites another report published late last year by the Institute for Society, Population and Nature (ISPN), funded by the EU. This report suggested that some of the areas currently experiencing the most rapid growth in the planting of sugarcane were also those identified by Brazil’s federal environment ministry (MMA) as priority areas for conservation of the Cerrado ecosystem.


Source: ISPN, from MMA and INPE

For example, in this map showing part of the state of Goiás to the west of the federal capital Brasilia, the purple areas of sugar cane plantations and red production plants are shown to coincide with the beige shaded areas defined by the government itself as “very high priority” areas for conservation of the Cerrado.

Even in the areas of São Paulo state where sugarcane already dominates the landscape, both the ISPN report and the current WWF study warn that further expansion of the crop could have damaging impacts on water resources and on biodiversity. For example, the region around the city of Riberão Preto – the Dallas of Brazil’s ethanol rush – some 45% of the land surface is already covered by sugarcane. Further expansion, argues WWF, should be accompanied by better strategic planning and accompanied by measures such as new protected areas to safeguard what remains of the natural resources of the area.

On the question of food security, the report also cautions that at the local level, there is a risk that small-scale agriculture, which produces the great majority of Brazil’s food supply, could give way to large-scale ethanol production, and that farmers displaced from their lands could be driven to peripheral urban areas with all the social consequences that brings.

The WWF study also acknowledges that while the direct impact on the Amazon from sugarcane production is minimal – although a small amount is grown in the region – there is a risk of indirect impacts if the displacement of cattle production and other crops in the Centre-South region by sugarcane pushes those activities to the rainforest frontier. However, it does not come to a firm conclusion on this, arguing instead that methodologies should be developed to measure these indirect impacts.

So lurking beneath the generally positive outlook on ethanol expansion given in this WWF analysis lie some pretty severe points of caution. Perhaps one of the key messages is that if the industry and its supporters really want to put a convincing case for the sustainability of this booming biofuel, the Cerrado should cease to be an invisible white gap on the map, and acknowledged as a valuable ecosystem worthy of care and attention in the planning of energy and food production in Brazil.



This article was published on www.oeco.com.br