Biofuels expert calls Brazilian ethanol tariff “an absurdity”, corn ethanol “not an industry that ought to be protected” and calls for US national renewable fuel standard

David Rothkop, visiting scholar at the Carnegie Endownment for International Peace and CEO of Garten Rothkop, spoke candidly about US trade and energy policy at the Americas Conference in Miami.

He said that Brazil produces ethanol 8-10 times as efficiently as corn ethanol, and that while “corn is good in the short term in the US, it is not an industry that ought to be protected. I am not in Iowa and not running for President, so I can say that.”

He called the tariff on imports of Brazilian ethanol “an absurdity, and more than you think.” He said that the popel who benefit from the tariff are not ethanol companies, but oil companies who blend gasoline with Brazilian ethanol at less than ten percent, as an additive, and qualify for rebates.  He estimated that as much as $150 million has been paid to oil companies in the form of ethanol rebates.

Rothkop said that biofuels are “a good interim step based on good, available technology to reduce our dependence.” He said that biofuels would play a niche role in a period where countries will have broader energy choice.

He called 2007 “a time to plan”. He indicated that it was not workable in the long-term to have 50 individual states with 50 individual energy policies.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Florida Governor Crist calls for reduction of Brazilian ethanol tariff

In Brazil, Florida governor Charlie Crist said that he opposed the Brazilian ethanol tariff and would lobby the state's Congressional delegation to reduce it.  The 54 cent per gallon tariff is sche...

UN Development Program calls on US, Europe to drop barriers to Brazilian ethanol

The United Nations Development Program called today for the elimination of the Brazilian ethanol tariff imposed by the US and Europe. The UNDP report said that Brazilian ethanol reduces greenhouse gas...

Iowa Senator leads effort to close loophole circumventing Brazilian ethanol tariff

In Washington, Sen. Chuck Grassley is leading an effort to close a loophole allowing oil companies to circumvent the tariff on Brazilian ethanol. The loophole allows oil companies to receive a rebate ...

Colorado governor calls for national renewable fuel standard; recommends “20 percent by 2020″

In Washington, Colorado Governor Ritter called on the US Congress to adopt Colorado's "20 percent by 2020" as the national renewable energy standard. He said that the country required a national renew...

Primate researcher Jane Goodall says biofuel crop growing is damaging rainforest in Brazil; former Brazilian ag minister says “It is an absurdity”

At the Clinton Global Initiative, primate scientist Jane Goodall said that crops growing for biofuels is damaging rain forests in Asia, Africa and South America and adding to the emissions blamed for ...

Fed chairman calls for elimination of Brazilian ethanol tariff; says the move will reduce food price inflation

In Washington, Federal Reserve Chairman Ben Bernanke said that he favors reduction of the Brazilian ethanol tariff, to reduce pressure on food prices from diversion of the corn crop to ethanol product...