George Bush says that ethanol will save the world. But there is evidence that biofuels may bring new problems for the planet. The ethanol boom is coming. The twin threats of climate change and energy security are creating an unprecedented thirst for alternative energy with ethanol leading the way. That process is set to reach a landmark on Thursday when the US President, George Bush, arrives in Brazil to kick-start the creation of an international market for ethanol that could one day rival oil as a global commodity. The expected creation of an “Opec for ethanol” replicating the cartel of major oil producers has spurred frenzied investment in biofuels across the Americas. But a growing number of economists, scientists and environmentalists are calling for a “time out” and warning that the headlong rush into massive ethanol production is creating more problems than it is solving. To its advocates, ethanol, which can be made from corn, barley, wheat, sugar cane or beet is a green panacea - a clean-burning, renewable energy source that will see us switch from dwindling oil wells to boundless fields of crops to satisfy our energy needs. Dr Plinio Mario Nastari, one of Brazil’s leading economists and an expert in biofuels, sees a bright future for an energy sector in which his country is the acknowledged world leader: “We are on the brink of a new era, ethanol is changing a lot of things but in a positive sense.” In its first major acknowledgment of the dangers of climate change, the White House this year committed itself to substituting 20 per cent of the petroleum it uses for ethanol by 2017. In Brazil, that switch is more advanced than anywhere in the world and it has already substituted 40 per cent of its gasoline usage. Ethanol is nothing new in Brazil. It has been used as fuel since 1925. But the real boom came after the oil crisis of 1973 spurred the military dictatorship to lessen the country’s reliance on foreign imports of fossil fuels. The generals poured public subsidies and incentives into the sugar industry to produce ethanol. Today, the congested streets of Sao Paolo are packed with flex-fuel cars that run off a growing menu of bio and fossil fuel mixtures, and all filling stations offer “alcohol” and “gas” at the pump, with the latter at roughly twice the price by volume. But there is a darker side to this green revolution, which argues for a cautious assessment of how big a role ethanol can play in filling the developed world’s fuel tank. The prospect of a sudden surge in demand for ethanol is causing serious concerns even in Brazil. The ethanol industry has been linked with air and water pollution on an epic scale, along with deforestation in both the Amazon and Atlantic rainforests, as well as the wholesale destruction of Brazil’s unique savannah land. Fabio Feldman, a leading Brazilian environmentalist and former memb
