Brazil leads field in alternative fuel race

Brazil is the world’s alternative fuel pioneer. It started down this road during the Seventies oil crisis. The government provided incentives, the state oil firm installed pumps and it took off. The industry is now subsidy-free – farmers don’t get a penny from the state.

There are environmental benefits too. Bioethanol engines produce 15 per cent fewer carbon dioxide emissions. Critics say this is negated by its relative inefficiency. But Brazilians argue this ignores the impact of growing cane, which sucks carbon dioxide out of the atmosphere.

The US may now be intent on swapping gas-guzzlers for sugar-sippers but how realistic is it to expect either the US or Europe to follow Brazil’s lead? There is one major stumbling block.

Observer