US, Brazil in global bio fuels trade initiative

03 March 2007

The US and Brazil, the world's two largest ethanol producers, have joined hands to create an international forum, International Biofuel Forum, to help turn bio fuels into a globally traded commodity.

The forum also includes China, India, South Africa and the European Union Commission in an effort to involve the world's biggest potential consumers and producers of ethanol, which emits far less greenhouse gases than fossil fuels

Next week President Bush travels to Brazil for talks in which renewable bio fuels will top the agenda. Bush and Brazilian President Luiz Inacio Lula da Silva are expected to sign another agreement to share scientific and technological research to promote the bio fuels industry across the western world.

The two countries will meet regularly for a year to draft global standards for bio fuel production, find ways to open markets and encourage investment in countries with the potential to develop the industry.

Brazilizn president Silva said "Biofuel cannot be promoted by just one country. It is a global issue."

Brazil is the world's largest exporter of ethanol, using sugar cane to produce it. According to reports, eight out of 10 Brazilian cars run on ethanol. In the US ethnol is made from corn and its production surpasses Brazil's.