Arnaldo Vieira de Carvalho Inter-American Development Bank – IDBEnergy Division Infrastructure and Environment DepartmentWashington, DCarnaldov@iadb.org; +1 202 623 1719

Workshop on Biofuels and Food Security Interactions International Food Policy Research Institute

November 19-20, 2014

Financing Biofuels in Latin America and the Caribbean

Inter-American Development Bank - IDB• Oldest regional development bank (1959): 48 member countries - 26 borrowers (with >50% votes

in the Board); HQs in Washington, DC, offices in all borrowing countries; finances both private and public sector projects, with or without sovereign guarantees. The IDB Group encompasses 3 institutions: the Inter-American Development Bank, the Inter-American Investment Corporation – IIC and the Multilateral Investment Fund - MIF.

Note: * Latin America and the Caribbean

• Main source for LAC* regional financing Approved loans/guarantees: US$230 billion (US$12 billion/y) Overall leveraged investments: US$500+ billion

Non-reimbursable technical cooperation: US$ 6 billion (US$800 million/y)

• 25% of portfolio now directed to climate change & clean energy

www.iadb.org

Source: WEO 2014, IEA, November 12, 2014

Latest Global biofuels forecast

Why should IDB support biofuels?

• As a development institution the Bank has a mandate to support investment programs in LAC that:

Contributes in a relevant way to sustainable social and economical development of its Member Countries

Reduce poverty and create jobs

Provides longer-term environmental benefits and mitigate climate change

Promotes sustainable rural development

Improve competitiveness, foster capacity-building, technology development and innovation

Optimize use of human and natural resources of its Member Countries

Stimulate public-private partnerships, among others

www.iadb.org/biofuelsscorecard

IDB Scorecard for Sustainable Biofuels

Press ContactPatricia Rojas patriciaro@iadb.org (202) 623-1373

The Inter-American Development Bank will lend $269 million for three new ethanol plants in south-central Brazil, in the largest biofuel investment ever made by a development bank. The Board of the Bank unanimously approved the financing today. The three plants are being developed by Companhia Nacional de Açúcar e Álcool (CNAA), a joint venture formed by Brazilian sugar producer Santelisa Vale, U.S. private equity firms and Global Foods, a holding company registered in the Netherlands Antilles...

Press Release

July 23, 2008

IDB lends $269 million for three Brazilian ethanol plants

Inter-American Development Bank – IDB

Press Release

December 15, 2009

Peru Biofuel project to receive US$25 million

Inter-American Development Bank – IDB

Combined ethanol refinery, sugar plantation and electricity plant will generate 500 permanent jobs for local communities in the Department of Piura, Peru.

An initiative of Maple Energy Plc, an energy company that has focused solely on Peru since 1994, listed on the London Stock Exchange’s Alternative Investment Market and on the Lima Stock Exchange. The project is known as Maple Etanol, requires a total investmentof $245.5 million and will receive assistance from Netherlands ……

Examples of grant support to biofuels

- US-BR MOU: Haiti, Guatemala and Honduras

and DR Phase II to evaluate specific projects - Mesoamerican Biofuels Network- 2nd Gen Biofuels in Chile (Consorcio ForEnergy)- support to most LAC countries on biofuels

2010 2020 2030

1.00

Relative C

O2

in

crease

growth (w/ no improvement)

carbon-neutral growth 2020+

alternative fuels fill the gap, together with market tools

w/ aircraft technology improv.

w/ operational improvements1.50

Aviation committed to carbon-neutral growth

ASTM D7566 approved in Sept 2009 synthetic fuels for aviation (for the 1st time), and in July 2011 established requirements for renewable sources.

2040

50% by 2050, with respect to 2010

Approved

11

1st activity: Life cycle assessment of Carbon emissions during the production and utilization of biojet fuel from sugar cane (DSHC): 82% reduction on carbon emissions; and Benchmarking of Biofuels Sustainability Standards co-financed with Embraer and Boeing

IDB Initiative for Sustainable Aviation Biofuels

Support demonstration (experimental) flights with Azul Airlines (1st ever with DSHC) during Rio+20

IDB Initiative for Sustainable Aviation Biofuels

and GOL (as part of ICAO Flightpath) using different feedstocks.

Brazil’s first commercial biojet fuel flight, CGH-BSB on October 24th, 2013, following approval of Resolução ANP Nº 20; DOU 25 June 2013 for HEFA

IDB Initiative for Sustainable Aviation Biofuels

365 biojet fuel flights during World Cup

between host cities and support to MG/

Brazilian/Panamerican Biojet fuel Platforms

See video: http://www.iadb.org/en/topics/energy/se4allamericas/renewables,17688.html

1st commercial flight using sugarcane-derived biojet fuel: July 30, 2014

• Example of technical assistance for ANAC : MIATA computations at airport level for national goal of 15% biojet fuel penetration in domestic operations (assuming 40% maximum blend at a single airport: operations in top 4 airports would be sufficient)

Rank Airport Share of domestic

jet fuel use

Maximum share of alternative fuel from airport total use

40% 30% 20%

1 SBGR-Sao Paulo 14% 40% 30% 20%2 SBBR-Brasilia 10% 40% 30% 20%3 SBSP-Cong. 7% 40% 30% 20%4 SBGL-Rio 7% 37% 30% 20%5 SBKP-Viracopos 5% 30% 20%6 SBRF-Recife 5% 30% 20%7 SBSV-Salvador 5% 9% 20%8 SBCF-B. Horiz. 5% 20%9 SBRJ-Rio SD 4% 20%

10 SBFZ-Fortaleza 4% 20%11 SBPA-P. Alegre 4% 20%12 SBCT-Curitiba 3% 20%13 SBBE-Belem 3% 17%14 SBEG-Manaus 3% 15 SBCY-Cuiaba 2%

IDB Initiative for Sustainable Aviation Biofuels

• Feasibility study of the first HEFA commercial plant for production of biojet for ASA of Mexico. Two alternatives were contemplated: processing 2,000 and 6,500 barrels per stream day (bpsd) of refined vegetable oil.

IDB Initiative for Sustainable Aviation Biofuels

Study on Camelina in Argentina: feasibility of cultivation in marginal areas in south of the country, includes analysis of economic, social and environmental issues.

IDB Initiative for Sustainable Aviation Biofuels

1919

SE4ALL Global Initiative

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