Japan seeks biofuel deal with industry leader Brazil

TOYAKO, Hokkaido--Prime Minister Yasuo Fukuda played a delicate balancing act here Wednesday during talks with the leader of Brazil, committing Japan to greater biofuel production against a backdrop of criticism of the industry.

Fukuda and President Luiz Inacio Lula da Silva agreed, in principle, to cooperate in biofuels research, with Tokyo providing technical experience in so-called second generation, non-food biofuels research.

In effect, Fukuda backed da Silva's claims that Brazil's giant biofuel industry was not causing food shortages.

Despite seeking a greater foothold in biofuels development, Japan has acknowledged concerns over the use of food commodities for engine fuel.

Brazil, the second-largest producer of biofuels, is adamant that its use of sugar cane to produce biofuel does not come at the expense of vital food production.

Da Silva said he hoped to see "bio-energy development as one area where the two countries can cooperate."

Fukuda responded: "Japan is currently researching cellulose (biofuels). With cooperation with Brazil, we believe progress will be made."

Biofuel production was a contentious issue at the Group of Eight summit which ended Wednesday.

Critics have accused Brazil and the United States, which together are responsible for about 70 percent of the world's biofuel production, of diverting crops to fuel automobiles.

Da Silva rejected those claims at the World Food Summit in June, saying that biofuels were the key to fighting climate change, and brought employment and income to rural areas.

The G-8 leaders issued a joint statement Tuesday on global food security in which they acknowledged that policies for sustainable biofuel production needed to be compatible with food security strategies.

They agreed to "work to develop science-based benchmarks and indicators for biofuel production and use."

Japan, which lags in development and use of biofuels, has a keen interest in learning from Brazil's experience, according to a Foreign Ministry official.

Japan hopes to annually produce and use biofuels equivalent to 500,000 kiloliters of crude oil by 2010. The level of production in 2007 was estimated at about 10,000 kiloliters.

The official said Japan would propose joint development of second generation biofuels with Brazil.

Takumo Yamada, advocacy manager for Oxfam Japan, said that while little evidence was found to suggest using sugar cane for biofuels was contributing to food shortages, it was too early "to rule out any negative effects on food supplies."

Moreover, Yamada warned against promoting the development of second generation biofuels, "if it only serves to promoting use of first generation biofuels using food."(IHT/Asahi: July 10,2008)