This publication compares the biofuels legislation in Latin America. It focuses on:
• Definition of biofuels;
• Authorities for the application of the laws;
• Duties of the enforcement authority;
• Blending of biofuels with fossil fuels;
• Procedure for mixing and distribution;
• Promotional arrangements and tax benefits;
• Promoting the use of biofuels;
• Priority sectors and approach;
• Environmental sustainability;
• Offences and penalties.
The report ends with clear conclusions.
Peru possesses a large potential for biofuel production. In that context, the Peruvian government approved the Law for the Promotion of Biofuel Markets and subsequent regulations, with mandatory blending of biodiesel and ethanol. Given the proposed change in the Peruvian energy matrix, SNV together with the World Wildlife Fund (WWF) implemented a project to analyse the socioeconomic and environmental risks and benefits caused by the production of biofuels and energy crops in (agricultural areas within) the Peruvian Amazon.
In the environmental impact study, a Life Cycle Assessment (LCA) for biofuel production was conducted. The LCA considered energy efficiency and Green House Gas (GHG) reduction besides other environmental aspects such as soil use and degradation and use of fertiliser and pesticides. The scenarios that proved to have a positive environmental impact in the agricultural stage are cultivation of Oil palm and Jatropha on already deforested lands with scarce vegetation. Production of biodiesel from Oil palm and Jatropha causing large scale deforestation (and therefore significant GHG emissions) was confirmed to be environmentally unsustainable.
These results were discussed with relevant stakeholders and presented at several events at local, national and international level. Hence, the results contribute to policy making and improved practices for a sustainable and inclusive development of the biofuels sector.