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biovaleenergia@gmail.com
BIOVALE PROJECT:
          A BIODIESEL BUSINESS
AS AN AGENT OF SOCIAL INCLUSION IN BRAZIL




                        WWW.REDEJATROPHANET.NING.COM
                        BIOBALEMINAS@GMAIL.COM
goals
   To set up a pool of highly professional entities to
organize the bio-diesel production chain based on Jatropha
curcas feedstock, elaborating turn-key projects from soil to
oil.
   promoting    sustained  development     and  poverty
alleviation, creating opportunities and a new model for
the intensive and extensive use of the energy biomass
potential of Brazil.
  Main focus: most vulnerable region of Brazil: Semi-arid,
particularly, Jequitinhonha and Mucuri Valleys, in the
Staste of Minas Gerais.

Final target: to set up socially responsible and state-of-art biodiesel
industries in one of the most vulnerable regions in Brazil.
vision
“Take joint actions and improve efforts to work together at
all levels to improve access to reliable and affordable energy
services for sustainable development sufficient to facilitate
the achievement of the MDGs, including the Goal of halving
the proportion of people in poverty by 2015, and as a means
to generate other important services that mitigate poverty,
bearing in mind that

access to energy facilitates the eradication of poverty”

               ( Summit on Sustainable Development in the
                    Johannesburg Plan of Implementation )
 “ We folks have to get out of the dry hinterland! But one only gets out
 of the dry hinterland is taking it over from inside...” (Guimarães Rosa)
empowering the poor groups
If the conditions could be created for these small
producers to become more effective in production and
trade, poor groups could contribute significantly to
achieving a higher and more sustainable pace of
development, promoting not only economic growth but
social cohesion.

But such conditions will not come about easily or quickly.
The legacy of history and the long marginalization of poor
groups in terms of the distribution of land and other
assets, in terms of institutions and of centuries of
inequity in access to education, nutrition and health,
create too great an obstacle.

These obstacles must be addressed and overcome if the
challenging targets on poverty reduction are to be
achieved. Acting directly on poverty means addressing
their constraints.
empowering the poor groups
Sustained growth can be achieved only by creating conditions in which
poor groups can increase their productivity and output.

 Empowering these poor groups is not a diversion from promoting
growth. On the contrary, it is an effective, and perhaps the only, way
of achieving sustainable growth.

But empowerment will serve little purpose if the material means for
increasing production and incomes are not available to the poor.

Enhancing their skills and building the human capital of the poor will
have a major impact on both their economic productivity and their
human dignity.

By improving the productivity and sustainable management of land
and water, technological advances offer the potential to address many
of the obstacles that the lack of assets imposes on the poor.

Access to extension services, market and technology must be relevant
to the conditions of the poor and they must have access to it.
Corporate social responsibility
The Sell Side of important financial markets is recognizing the
materiality of corporate social responsibility.

Social and environmental issues can materially affect stock prices,
particularly over the long-term and sometimes even in the short-
term.

“Business is part of society, not outside it. When we talk about
corporate social responsibility, we don’t see it as something
business does to society, but as something fundamental to
everything we do…not just philanthropy or community investment,
but the impact of our operations and products as well as the
interaction we have with the societies we serve. CSR is not a soft
issue or a nice to do activity on the fringe of business. It is central
to doing business. It is challenging to manage and it is a hard
edged business issue.” (expressed by the giant Unilever at the
London business School)

 We encourage organizations and investors to scrutinize our
 project/corporation as an attractive option to their socially
                  responsible investments.
our challange
  In modern economies, large scale poverty imposes an enormous
  economic loss, wasting the talents and energies of hundreds of
  millions of people , diverted from socially productive activities that
  could create wealth for society to the struggle for mere survival.


The partnerships
should be at the
global level, at the
country level with
national
stakeholders and
external partners
acting together,
the private sector
and civil-society      But the fundamental partnership, and
institutions           ultimately the only one that counts, is with the
collaborating to       poor themselves. They have the talents, the
create conditions
that emancipate        skills and the knowledge of their own
poor groups.           environment.
Biofuels: A New Future for Rural Communities


One of the main benefits of biofuels is their potential to increase
farm incomes and strengthen rural economies. The World Bank
reports that biofuel industries require about 100 times more workers
per unit of energy produced than the fossil fuel industry.

In 2004, the Brazilian sugarcane sector was responsible for 1 million
jobs (direct)/4 million (indirect) corresponding to the production of
350 million tonnes of cane (UNICA, 2003 and Goldemberg, 2003).

The dispersed nature of agriculture makes it unlikely that biofuel
production will become as centralized as the oil industry.

In the focused region of the project (Jequitinhonha & Mucuri Valleys)
the access to modern forms of energy is limited or absent. An
orchastrated pool of competences involved in the biodiesel
production chain can help provide income and clean, accessible
energy that is vital for rural development and poverty alleviation.
energy & prosperity

Most poor households in developing
countries lack access to modern
fuels. They instead rely on traditional
biomass fuels like crop
waste,dung, and wood to meet their
basic energy needs.

When used with inefficient devices these
low-quality fuels often result in harmful
health and environmental impacts.

The order of fuels on the energy ladder
corresponds to their efficiency and
‘cleanliness’ at end use.
                                            Climbing the energy ladder towards more
Although modern fuels tend to be more       modern fuels, therefore, is a challenge
costly, they do provide people with far     most poor people in developing countries
greater opportunities for income            must face in order to improve their
generation.                                 overall standard of living.

                                                                Source: REN 21/2006
energy link to overall human development



There is an empirical
basis to the relationship
between access to
modern energy and
human development.

Energy is strongly linked
to human development.

No country in modern
times has substantially
reduced poverty without
a massive increase in its
use of energy and/or a
shift to efficient energy
sources.

                                                      Source: REN 21/2006
Our local partners

The poor have to be recognized as individuals with rights and as potential
agents of change who can themselves play an increasing role.

In determining social and economic outcomes poor groups should not be
seen merely as a burden on society. Rather, the poor, especially women, are
hard working and often effective microentrepreneurs.



                                                        Our local partners
                                                        And environment
Development model



The development model is based on the working
relationship among the various stakeholders
involved in the productive chain with clear
attributions in all levels: local community, local
technical NGO, enterprising development agency ,
servicing companies, Government agents and a
corporation.

Each entity has its respective and important roles
that complement, harmonize and support one
another leading to the ultimate success and
sustainability of the project.

            “The private sector can play an important role
            towards furthering development, for development
            cannot occur without conditions that are amenable to
            the conduct of business.” (United Nations)
General intervention strategies


                 Competitiveness and productivity:
MARKET SIGHT     adoption of compatible mechanisms


                 Inclusion
SOCIAL SIGHT     Participation
                 Equity

                 Regional clusters formation
 GEO SIGHT
                 Adequate logistics

                 Attractiveness to private sector
BUSINESS SIGHT   Favorable climate
                 Compatible working tools
Development model: local NGO

Local NGO´s will support following types of interventions:

establishing effective monitoring and evaluation systems, working
closely with cooperating institutions to improve impact assessment
and supervision, and strengthening partnerships with a range of
different players.

promoting a global policy environment that increases market access
for the rural poor.

directly responsibility to the community - directly involved in the
energy crop cultivation and oil extraction than the development
agency, assessing the communities’ organizational capacity and their
potential to complete and manage an energy project.

 providing technical, organizational advice, support and training to
the community
Development model: Foreign Development Agency



Direct main responsibilities of the development agency :

To provide seed money and matching grants that can initiate
and support the efforts of the NGO to raise the money needed
for a project and/or provide capacity grants which help to
build their organizational capacity.

To popularize the NGO achievements in developing sustainable
energy systems and related environmental protection plans
through the media, internet, and other written and visual
sources (SLUIJS & BODE, 2001).

To facilitate trainings for NGOs such as; community surveys of
power demand and potential usage, site selection, the budget
process, choice of appropriate technology, environmental
assessments, feasibility studies, civil design, operational &
fiscal management, micro-enterprise development, long term
planning, and grant writing (SLUIJS & BODE, 2001).
Development model: Investment agency



MINASINVEST, a not-for profit investment agency, will be primarily in
charge of the social-economic factors coordinating the efforts among
the various stakeholders, which includes:

Building market information systems.

Identifying and coordinating the best partners;

Developing policies and strategies to improve competitiveness;

Strengthening the producers´ negotiating position ;

Providing well-researched analyses;

Government and institutional relationships involved in the project.
Development model:The Community



The local community possesses direct responsibility towards the day-
today running of the biofuel project . Particular emphasis is given on
the socio-economic empowerment of women, thus women groups will
be specially utilized to manage the project.

The role of the community should therefore be:

● Provision of land for Jatropha plantation and site for the
establishment of the oil extraction unit.
● Responsibility for the day-to-day management of plantation,
including: cultivation and harvesting.
● Commitment of human resources for project development such as
unskilled labor (to handle farmlands), access to skilled labor.

In order to help the community in their quest towards sustainable
development, it is very important that they should be the main
recipient of all benefits accrued from the project.
End goal & management

The BIO-VALE project can bring about major economic
empowerment by providing income and employment
opportunities to both the rural communities and entreupreneus.

The project can be utilized to stimulate a circular system
combining ecologic, economic, and income-generating effects
(HEN. 1994), particularly to the drought prone rural
communities of the Brazilian semi-arid regions.

The project promotes the main aspects of development, which
combine to help achieve a sustainable way of life for village
farmers in terms of provision of renewable energy, erosion
control, economic empowerment through job creation and
poverty reduction and economic development.

The favorable context in Brazil, the onset of widespread
distribution, the differential tax regime recognizing the
importance of oilseed production by family agriculture units– and
the introduction of the “Social Fuel” label are regulatory
instruments designed to promote social inclusion throughout the
new fuel’s production and value chain.

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Biovale biodiesel business as an agent of social inclusion idene

  • 2. BIOVALE PROJECT: A BIODIESEL BUSINESS AS AN AGENT OF SOCIAL INCLUSION IN BRAZIL WWW.REDEJATROPHANET.NING.COM BIOBALEMINAS@GMAIL.COM
  • 3. goals To set up a pool of highly professional entities to organize the bio-diesel production chain based on Jatropha curcas feedstock, elaborating turn-key projects from soil to oil. promoting sustained development and poverty alleviation, creating opportunities and a new model for the intensive and extensive use of the energy biomass potential of Brazil. Main focus: most vulnerable region of Brazil: Semi-arid, particularly, Jequitinhonha and Mucuri Valleys, in the Staste of Minas Gerais. Final target: to set up socially responsible and state-of-art biodiesel industries in one of the most vulnerable regions in Brazil.
  • 4. vision “Take joint actions and improve efforts to work together at all levels to improve access to reliable and affordable energy services for sustainable development sufficient to facilitate the achievement of the MDGs, including the Goal of halving the proportion of people in poverty by 2015, and as a means to generate other important services that mitigate poverty, bearing in mind that access to energy facilitates the eradication of poverty” ( Summit on Sustainable Development in the Johannesburg Plan of Implementation ) “ We folks have to get out of the dry hinterland! But one only gets out of the dry hinterland is taking it over from inside...” (Guimarães Rosa)
  • 5. empowering the poor groups If the conditions could be created for these small producers to become more effective in production and trade, poor groups could contribute significantly to achieving a higher and more sustainable pace of development, promoting not only economic growth but social cohesion. But such conditions will not come about easily or quickly. The legacy of history and the long marginalization of poor groups in terms of the distribution of land and other assets, in terms of institutions and of centuries of inequity in access to education, nutrition and health, create too great an obstacle. These obstacles must be addressed and overcome if the challenging targets on poverty reduction are to be achieved. Acting directly on poverty means addressing their constraints.
  • 6. empowering the poor groups Sustained growth can be achieved only by creating conditions in which poor groups can increase their productivity and output. Empowering these poor groups is not a diversion from promoting growth. On the contrary, it is an effective, and perhaps the only, way of achieving sustainable growth. But empowerment will serve little purpose if the material means for increasing production and incomes are not available to the poor. Enhancing their skills and building the human capital of the poor will have a major impact on both their economic productivity and their human dignity. By improving the productivity and sustainable management of land and water, technological advances offer the potential to address many of the obstacles that the lack of assets imposes on the poor. Access to extension services, market and technology must be relevant to the conditions of the poor and they must have access to it.
  • 7. Corporate social responsibility The Sell Side of important financial markets is recognizing the materiality of corporate social responsibility. Social and environmental issues can materially affect stock prices, particularly over the long-term and sometimes even in the short- term. “Business is part of society, not outside it. When we talk about corporate social responsibility, we don’t see it as something business does to society, but as something fundamental to everything we do…not just philanthropy or community investment, but the impact of our operations and products as well as the interaction we have with the societies we serve. CSR is not a soft issue or a nice to do activity on the fringe of business. It is central to doing business. It is challenging to manage and it is a hard edged business issue.” (expressed by the giant Unilever at the London business School) We encourage organizations and investors to scrutinize our project/corporation as an attractive option to their socially responsible investments.
  • 8. our challange In modern economies, large scale poverty imposes an enormous economic loss, wasting the talents and energies of hundreds of millions of people , diverted from socially productive activities that could create wealth for society to the struggle for mere survival. The partnerships should be at the global level, at the country level with national stakeholders and external partners acting together, the private sector and civil-society But the fundamental partnership, and institutions ultimately the only one that counts, is with the collaborating to poor themselves. They have the talents, the create conditions that emancipate skills and the knowledge of their own poor groups. environment.
  • 9. Biofuels: A New Future for Rural Communities One of the main benefits of biofuels is their potential to increase farm incomes and strengthen rural economies. The World Bank reports that biofuel industries require about 100 times more workers per unit of energy produced than the fossil fuel industry. In 2004, the Brazilian sugarcane sector was responsible for 1 million jobs (direct)/4 million (indirect) corresponding to the production of 350 million tonnes of cane (UNICA, 2003 and Goldemberg, 2003). The dispersed nature of agriculture makes it unlikely that biofuel production will become as centralized as the oil industry. In the focused region of the project (Jequitinhonha & Mucuri Valleys) the access to modern forms of energy is limited or absent. An orchastrated pool of competences involved in the biodiesel production chain can help provide income and clean, accessible energy that is vital for rural development and poverty alleviation.
  • 10. energy & prosperity Most poor households in developing countries lack access to modern fuels. They instead rely on traditional biomass fuels like crop waste,dung, and wood to meet their basic energy needs. When used with inefficient devices these low-quality fuels often result in harmful health and environmental impacts. The order of fuels on the energy ladder corresponds to their efficiency and ‘cleanliness’ at end use. Climbing the energy ladder towards more Although modern fuels tend to be more modern fuels, therefore, is a challenge costly, they do provide people with far most poor people in developing countries greater opportunities for income must face in order to improve their generation. overall standard of living. Source: REN 21/2006
  • 11. energy link to overall human development There is an empirical basis to the relationship between access to modern energy and human development. Energy is strongly linked to human development. No country in modern times has substantially reduced poverty without a massive increase in its use of energy and/or a shift to efficient energy sources. Source: REN 21/2006
  • 12. Our local partners The poor have to be recognized as individuals with rights and as potential agents of change who can themselves play an increasing role. In determining social and economic outcomes poor groups should not be seen merely as a burden on society. Rather, the poor, especially women, are hard working and often effective microentrepreneurs. Our local partners And environment
  • 13. Development model The development model is based on the working relationship among the various stakeholders involved in the productive chain with clear attributions in all levels: local community, local technical NGO, enterprising development agency , servicing companies, Government agents and a corporation. Each entity has its respective and important roles that complement, harmonize and support one another leading to the ultimate success and sustainability of the project. “The private sector can play an important role towards furthering development, for development cannot occur without conditions that are amenable to the conduct of business.” (United Nations)
  • 14. General intervention strategies Competitiveness and productivity: MARKET SIGHT adoption of compatible mechanisms Inclusion SOCIAL SIGHT Participation Equity Regional clusters formation GEO SIGHT Adequate logistics Attractiveness to private sector BUSINESS SIGHT Favorable climate Compatible working tools
  • 15. Development model: local NGO Local NGO´s will support following types of interventions: establishing effective monitoring and evaluation systems, working closely with cooperating institutions to improve impact assessment and supervision, and strengthening partnerships with a range of different players. promoting a global policy environment that increases market access for the rural poor. directly responsibility to the community - directly involved in the energy crop cultivation and oil extraction than the development agency, assessing the communities’ organizational capacity and their potential to complete and manage an energy project. providing technical, organizational advice, support and training to the community
  • 16. Development model: Foreign Development Agency Direct main responsibilities of the development agency : To provide seed money and matching grants that can initiate and support the efforts of the NGO to raise the money needed for a project and/or provide capacity grants which help to build their organizational capacity. To popularize the NGO achievements in developing sustainable energy systems and related environmental protection plans through the media, internet, and other written and visual sources (SLUIJS & BODE, 2001). To facilitate trainings for NGOs such as; community surveys of power demand and potential usage, site selection, the budget process, choice of appropriate technology, environmental assessments, feasibility studies, civil design, operational & fiscal management, micro-enterprise development, long term planning, and grant writing (SLUIJS & BODE, 2001).
  • 17. Development model: Investment agency MINASINVEST, a not-for profit investment agency, will be primarily in charge of the social-economic factors coordinating the efforts among the various stakeholders, which includes: Building market information systems. Identifying and coordinating the best partners; Developing policies and strategies to improve competitiveness; Strengthening the producers´ negotiating position ; Providing well-researched analyses; Government and institutional relationships involved in the project.
  • 18. Development model:The Community The local community possesses direct responsibility towards the day- today running of the biofuel project . Particular emphasis is given on the socio-economic empowerment of women, thus women groups will be specially utilized to manage the project. The role of the community should therefore be: ● Provision of land for Jatropha plantation and site for the establishment of the oil extraction unit. ● Responsibility for the day-to-day management of plantation, including: cultivation and harvesting. ● Commitment of human resources for project development such as unskilled labor (to handle farmlands), access to skilled labor. In order to help the community in their quest towards sustainable development, it is very important that they should be the main recipient of all benefits accrued from the project.
  • 19. End goal & management The BIO-VALE project can bring about major economic empowerment by providing income and employment opportunities to both the rural communities and entreupreneus. The project can be utilized to stimulate a circular system combining ecologic, economic, and income-generating effects (HEN. 1994), particularly to the drought prone rural communities of the Brazilian semi-arid regions. The project promotes the main aspects of development, which combine to help achieve a sustainable way of life for village farmers in terms of provision of renewable energy, erosion control, economic empowerment through job creation and poverty reduction and economic development. The favorable context in Brazil, the onset of widespread distribution, the differential tax regime recognizing the importance of oilseed production by family agriculture units– and the introduction of the “Social Fuel” label are regulatory instruments designed to promote social inclusion throughout the new fuel’s production and value chain.