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### Viewing cable 08BRASILIA1219, SOUTH AMERICA ESTH NEWS, NUMBER 112

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08BRASILIA1219 | 2008-09-12 15:04 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    VZCZCXRO1762
    RR RUEHAST RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHTM
    DE RUEHBR #1219/01 2561504
    ZNR UUUUU ZZH
    R 121504Z SEP 08
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 2416
    INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
    RUEHDS/AMEMBASSY ADDIS ABABA 0338
    RUEHAM/AMEMBASSY AMMAN 0357
    RUEHBK/AMEMBASSY BANGKOK 0513
    RUEHUP/AMEMBASSY BUDAPEST 0331
    RUEHCP/AMEMBASSY COPENHAGEN 0378
    RUEHOR/AMEMBASSY GABORONE 0334
    RUEHKT/AMEMBASSY KATHMANDU 0340
    RUEHLC/AMEMBASSY LIBREVILLE 0341
    RUEHSJ/AMEMBASSY SAN JOSE 0861
    RUEHSV/AMEMBASSY SUVA 0320
    RUEHNE/AMEMBASSY NEW DELHI 0562
    RUEHBU/AMEMBASSY BUENOS AIRES 5768
    RUEHSG/AMEMBASSY SANTIAGO 0547
    RUEHLP/AMEMBASSY LA PAZ 6548
    RUEHPE/AMEMBASSY LIMA 3922
    RUEHQT/AMEMBASSY QUITO 2567
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    RUEHGE/AMEMBASSY GEORGETOWN 1553
    RUEHMN/AMEMBASSY MONTEVIDEO 7489
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    RUEHCV/AMEMBASSY CARACAS 4216
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    RUEHSO/AMCONSUL SAO PAULO 2710
    RUEHRI/AMCONSUL RIO DE JANEIRO 6577
    RUEATRS/DEPT OF TREASURY WASH DC
    RHEBAAA/DOE WASHDC
    RUEHC/DOI WASHDC
    RUEAWJA/DOJ WASHDC
    RUEAEPA/HQ EPA WASHDC
    RUEANAT/NASA HQ WASHDC
    RUCPDC/NOAA WASHDC
    RUMIAAA/USCINCSO MIAMI FL
    RUEHRC/USDA WASHDC
    RUCPDOC/USDOC WASHDC

` `

    UNCLAS SECTION 01 OF 18 BRASILIA 001219

    SIPDIS

    DEPT PASS USAID TO LAC/RSD, LAC/SAM, G/ENV, PPC/ENV
    TREASURY FOR USED IBRD AND IDB AND INTL/MDB
    USDA FOR FOREST SERVICE: LIZ MAHEW
    INTERIOR FOR DIR INT AFFAIRS: K WASHBURN
    INTERIOR FOR FWS: TOM RILEY
    INTERIOR FOR NPS: JONATHAN PUTNAM
    INTERIOR PASS USGS FOR INTERNATIONAL: J WEAVER
    JUSTICE FOR ENVIRONMENT AND NATURAL RESOURCES: JWEBB
    EPA FOR INTERNATIONAL: CAM HILL-MACON
    USDA FOR ARS/INTERNATIONAL RESEARCH: G FLANLEY
    NSF FOR INTERNATIONAL: HAROLD STOLBERG

    E.O. 12958: N/A
    TAGS: SENV EAGR EAID TBIO ECON SOCI XR BR
    SUBJECT: SOUTH AMERICA ESTH NEWS, NUMBER 112

    BRASILIA 00001219  001.2 OF 018

    ¶1.  The following is part of a series of newsletters, published by
    the Brasilia Regional Environmental Hub, covering environment,
    science and technology, and health news in South America.  The
    information below was gathered from news sources from across the
    region, and the views expressed do not necessarily reflect those of
    the Hub office or our constituent posts.  Addressees who would like
    to receive a user-friendly email version of this newsletter should
    contact Larissa Stoner at stonerla@state.gov.  The e-mail version
    also contains a calendar of upcoming ESTH events in the region.
    NOTE: THE NEWSLETTER IS NOW ALSO AVAILABLE ON THE BRASILIA INTRANET
    PAGE, BY CLICKING ON THE 'HUB' LINK.

    ¶2. Table of Contents

    Agriculture
    --(3)Climate Threat to Brazil's Soya Exports
    --(4)Argentina: Soy - High Profits Now, Hell to Pay Later

    Water Issues
    --(5)Chile Starts Effort to Protect Watersheds

    Forests
    --(6)Amazon Rainforest Threatened by New Oil and Gas Exploration
    --(7)Brazil Launches Ambitious Fund for Amazon Forest
    --(8)Argentina: Forest Impacts of Pig-Iron Plant Debated
    --(9)Brazil President Signs Decrees Toughening Environmental
    Enforcement in Amazon
    --(10)Guyana to Get US$200,000 from Forest Carbon Partnership
    --(11)Dow Gives $1.5 Million to Preserve, Restore Brazil's Atlantic
    Forest

    Protected Areas
    --(12)Chile: Six New Wilderness Areas
    --(13)Iron, Diamonds May Turn Legal to Mine in Amazon Indigenous
    Reserves
    --(14)Brazil Mulls Sugar Cane Limit to Protect Wetland

    Science & Technology
    --(15)Brazil Harnesses Space Technology to Monitor Deforestation

    Energy
    --(16)Argentina, Brazil to Develop Nuclear Energy Agency

    BRASILIA 00001219  002.2 OF 018

    --(17)Chilean Government Pushes Solar Energy Incentives for
    Households
    --(18)Brazil's Biofuel Plane Fleet Grows
    --(19)Brazil Wants United States Help Managing Nuclear Waste
    --(20)Biodiesel to Bring Electricity to Amazon Villages
    --(21)Brazil: Petrobras Launches Biofuels Subsidiary
    --(22)Russia and Venezuela Will Coordinate on Energy

    Climate Change
    --(23)Peru Mountain Glaciers 'Receding Rapidly'

    Sustainable Development
    --(24)Bolivia: Businesses Take On the Green Challenge
    --(25)Latin America: Ingenuity at the Service of Sustainable
    Business
    --(26)Implementing a Butterfly Farm: Guyana's Latest Sustainable
    Initiative

    SPECIAL FEATURE!!NEWS FROM THE FRONT
    *US Embassy ESTH Work in South America*
    -(27)Colombia: Marine Environmental Security Workshop
    -(28)Ecuador: Sustainable Urban Mobility Expert
    -(29)Chile and Argentina: Renewable Energy Speaker from NREL; EPA
    Environmental Law Enforcement Training
    -(33)Peru:  Sustainable Biofuels Workshops
    -(34)Suriname: Fighting Illegal Wildlife Trafficking
    -(35)Guyana: Aquaculture Partnership
    -(36)Bolivia: Biofuels Energy Workshop

    -----------
    Agriculture
    -----------

    ¶3. Climate Threat to Brazil's Soya Exports
    AUG. 10 2008 - Brazil's soya exports could slump by more than a
    quarter over the next 12 years as a result of climate change,
    according to a study to be presented at an agribusiness conference
    in Sao Paulo.  The study will add to concern over worsening food
    shortages around the world.  It shows that even moderate rises in
    temperatures would cause significant damage to a range of
    agricultural products in Brazil, which has emerged over the past
    decade as one of the world's biggest suppliers of food crops.  By

    BRASILIA 00001219  003.2 OF 018

    2020, the study says, the value of six of Brazil's food crops -
    rice, coffee, beans, manioc, maize and soya - could fall by between
    6.5bn reals ($4bn) and 7.1bn reals if average temperatures rose by
    between 1:C and 2:C.  The most serious damage would be to soya. The
    amount of land suitable for soya cultivation would fall by more than
    21 per cent under the best-case scenario, which assumes that action
    is taken to reduce greenhouse gas emissions, and by almost 24 per
    cent if emissions continue at present rates.
    Source - Financial Times

    ¶4. Argentina: Soy - High Profits Now, Hell to Pay Later
    JUL. 29, 2008- At a time when the price of soy, Argentina's main
    export crop, has reached record highs on the international markets,
    family agriculture experts and environmental groups are warning
    about its severe social and environmental effects.  Covering 16.6
    million hectares, more than half of the country's cultivated land,
    soybeans command prices of around 600 dollars a ton and are
    expanding at the expense of maize, wheat, citrus fruits and cattle
    ranching, among other farming activities. This expansion is likely
    to continue after the recent repeal of the controversial hike in
    export taxes on soy adopted by the government in March. "Soy is an
    example of the 'boom and bust' model, much like fishing, mining or
    intensive logging," said Jorge Cappato, of the Fundacisn Proteger.
    "An ecosystem is pressured beyond its limits, to generate enormous
    profits in the short term, at the cost of renewable natural
    resources."
    Source - IPS News

    ------------
    Water Issues
    ------------

    ¶5. Chile Starts Effort to Protect Watersheds
    JULY 2008 - Watershed protection, one of Chilean President Michelle
    Bachelet's chief campaign promises to environmental advocates, has
    officially gotten underway with three pilot projects.  The projects
    are being conducted on the Copiaps River in the north, the Rapel
    River in the country's center and the Baker River in southern
    Patagonia.  Ana Lya Uriarte, Chile's environment minister, said
    recently that the pilot projects will seek to "analyze the behavior
    of the water, install a public-private planning model and involve in
    a sustainable way all activities around these resources."  Uriarte

    BRASILIA 00001219  004.2 OF 018

    added that the Baker River, the proposed site for a controversial
    hydroelectric project, lies "in an area of our country with
    particularly special ecosystem characteristics, a large quantity of
    virgin zones, and important tourism development".  At the national
    level, the new strategy calls for the creation of an
    inter-ministerial Watershed Ministry Council to propose
    watershed-management policies that "will reconcile diverse
    interests".  To assist the council, the government is creating a
    technical secretariat to be managed jointly by Chile's Water Agency
    and the National Environment Commission (Conama).The new strategy
    also contemplates the creation of local bodies charged with drafting
    and implementing watershed-management plans. These public-private
    Watershed Organizations would include water users, government
    officials, green activists and other relevant stakeholders.
    Source - EcoAmericas

    -------
    Forests
    -------

    ¶6. Amazon Rainforest Threatened by new Oil and Gas Exploration
    AUG. 13, 2008 - Vast swathes of the western Amazon - including
    Brazil, Peru, Ecuador, Bolivia, and Colombia - are to be opened up
    for oil and gas exploration, putting some of the planet's most
    pristine and biodiverse forests at risk, conservationists have
    warned.  A survey of land earmarked for exploration by energy
    companies revealed a steep rise in recent years, to around 180
    zones, which together cover an area of 688,000 sq km, almost
    equivalent to the size of Texas.  Detailed mapping of the region
    shows the majority of planned oil and gas projects, which are
    operated by at least 35 multinational companies, are in the most
    species-rich areas of the Amazon for mammals, birds and amphibians.
    Researchers used government information on land that has been leased
    to state or multinational energy companies over the past four years
    to create oil and gas exploration maps for western Brazil, Peru,
    Ecuador, Bolivia and Colombia. The maps showed that in Peru and
    Ecuador, regions designated for oil and gas projects already cover
    more than two thirds of the Amazon in their countries. Of 64 oil and
    gas regions that cover 72% of the Peruvian Amazon, all but eight
    were approved since 2003.  Major increases in activity are expected
    in Bolivia and western Brazil.
    Source - Guardian

    BRASILIA 00001219  005.2 OF 018

    ¶7. Brazil: INPE Releases Numbers of Amazon Deforestation for
    2007-2008
    Brazil's Space Research Institute (INPE) revealed that, according to
    its real-time deforestation detection system (DETER), 8,147 square
    kilometers of Amazon rainforest were deforested between August 2007
    and July 2008.  According to INPE, these numbers do not correspond
    to the annual rate of deforestation, which is calculated by PRODES,
    a more detailed system which only considers deforestation in its
    final stage (i.e. clear-cutting).
    For more information please refer to

    ¶8. Brazil Launches Ambitious Fund for Amazon Forest
    AUG. 04, 2008 - Brazil's President Luiz Inacio Lula da Silva
    launched an international fund to finance conservation and
    sustainable development in the Amazon as deforestation rates rise.
    The fund will support forest conservation, scientific research and
    sustainable development projects, such as rubber tapping, forestry
    management, enhanced concession programs, and development of
    pharmaceutical drugs from rainforest plants.  The government hopes
    to raise US$1 billion within one year and as much as US$21 billion
    by 2021, according to Brazil's National Development Bank (BNDES),
    which will manage the fund.  It is open to companies, countries and
    nongovernmental organizations. In September, Norway will make the
    first donation -- US$100 million -- said Eduardo Bandeira de Mello,
    head of Environment and Social Responsibilities at BNDES.
    Source - Planet Ark http://www.planetark.org.  SEE ALSO BRASILIA
    1159

    ¶9. Argentina: Forest impacts of pig-iron plant debated
    JULY 2008 - Chaco, located on the border with Paraguay, ranks among
    Argentina's poorest provinces. The region's income comes mostly from
    farming and logging. That, in large part, explains why provincial
    authorities have leapt to the defense of a proposal by Vetorial, a
    Brazilian company, to build a US$200 million pig iron plant near
    Resistencia, Chaco's capital.  Pig iron is a key ingredient in the
    manufacture of steel, and project proponents say the Chaco plant
    will generate jobs by helping to supply steel mills not only in
    Argentina, but eventually also in Brazil and southeast Asia.
    Conservationists contend that the project would accelerate
    deforestation as trees are extracted from native woodlands to
    produce charcoal that is used to make the pig iron.  Citing the

    BRASILIA 00001219  006.2 OF 018

    project's environmental-impact study, they point out that the
    Vetorial facility would consume 90,000 tons of charcoal annually for
    the first three or four years, then double that amount as production
    rises.  Chaco already produces approximately 220,000 tons of
    charcoal annually, the provincial government says.  The new plant,
    which would be the first of its kind in Argentina, also would draw
    wood for charcoal from forests in Formosa and Santiago del Estero
    provinces.
    Source - EcoAmericas (please contact Larissa Stoner for complete
    article)

    ¶10. Brazil President Signs Decrees Toughening Environmental
    Enforcement in Amazon
    JULY 23, 2008 - Brazil's president signed two new decrees Tuesday
    aimed at cracking down on illegal deforestation in the Amazon.  The
    first decree gives inspectors the power to seize property and goods
    from people caught with illegally logged wood, and shortens the
    period during which landowners can appeal fines for environmental
    violations from eight years to one.  The other decree provides for
    more agents to police the vast Amazon basin, which covers an area
    larger than Western Europe. The number of new agents is still to be
    determined.  President Luiz Inacio Lula da Silva said the measures
    are necessary to keep Brazilian soybeans and biofuels competitive
    worldwide, explaining that some consumers might boycott those goods
    if they feel their production is hurting the rain forest.  "Not
    protecting the environment would hurt Brazil's competitive
    advantage," Silva said. "We'd be shooting ourselves in the foot."
    Brazil has some of the world's toughest environmental legislation.
    But enforcement is spotty, and environmentalists say less than 1
    percent of fines levied in the Amazon were collected in 2007.
    Source - International Herald Tribune

    ¶11. Guyana to Get US$200,000 from Forest Carbon Partnership
    JULY 25, 2008 - Guyana will receive US$200,000 from the World Bank's
    Forest Carbon Partnership Facility (FCPF) to prepare its Readiness
    Plan (R-Plan) for combating tropical deforestation.  The R-Plan will
    outline among other activities, the methodologies to be used in
    carrying out assessments of historical and current greenhouse gas
    emissions from deforestation and forest degradation at a national
    level.  It will also look at mechanisms to project and model future
    emissions from deforestation and degradation, and to update biomass
    field estimates across all land uses, both of which will be done at

    BRASILIA 00001219  007.2 OF 018

    the national level.  The World Bank named Guyana as one of 14
    developing countries selected as the first states to receive money
    for combating tropical deforestation and climate change from an
    initial US$82M partnership between those countries and nine
    industrialized states. The FCPF aims to reduce deforestation and
    forest degradation by compensating developing countries for
    greenhouse gas emission reductions. The 14 tropical and sub-tropical
    countries will receive grant support as they build their capacity to
    reduce emissions from deforestation and forest degradation (REDD)
    and tap into future systems of positive incentives for REDD.
    Source - Stabroeknews

    ¶12. Dow Chemical Gives $1.5 Million to Preserve, Restore Brazil's
    Atlantic Forest
    JULY 17, 2008 - The Dow Chemical Co. is collaborating with The
    Nature Conservancy to restore the shoreline of the Cachoeira
    reservoir in the Cantareira System in Brazil's Atlantic Forest.
    Dow's $1.5 million pledge through its charitable foundation was
    announced at the company's first-ever Latin American Sustainability
    Forum.  The reforestation will take place in a highly degraded
    landscape.  The land's freshwater services are critical to the
    health and well-being of millions of people in Brazil.  Goals of the
    reforestation project include sequestering carbon to mitigate
    climate change, and ultimately selling certified carbon credits to
    support ongoing reforestation in the Atlantic Forest. The ultimate
    goal is to join efforts to reforest all the degraded riparian areas
    and protect the existent forest remnants of the Cantareira system.
    The Atlantic Forest is the source of drinking water for 70 percent
    of Brazil's population including Rio de Janeiro and Sao Paulo - for
    more than 130 million people. The most acute risk to the survival of
    the Atlantic Forest's biodiversity is the very fragmented state of
    forest remnants and their ecological isolation from one another.
    Source - Midland Daily

    ---------------
    Protected Areas
    ---------------

    ¶13. Chile: Six New Wilderness Areas
    AUG. 26, 2008 - Chile's extensive system of national parks,
    reserves, and natural monuments will soon boast six new additions.
    In 2009, wilderness areas in the Arica-Parinacota, Antofagasta,

    BRASILIA 00001219  008.2 OF 018

    O'Higgins, Biobo and Los Ros regions will join the state's
    National System of Protected Wilderness Areas (Snaspe).  The new
    additions include National Park Alerce Costero (Region XIV), Natural
    Reserves Altos del Loa (Region II), Laguna Cahuill (Region VI),
    Cordillera del Pemehue (Region VIII), Cordillera del Noguen (Region
    VIII), and Natural Monument Quebrada Cardones (Region XV).  These
    areas were chosen due to the presence of native plants, animals, or
    geological formations, said government officials.  National Reserve
    Laguna Cahuil, for example, is home to 46 species of aquatic birds,
    many on the verge of extinction.  The parks will focus on
    preservation of Chile's natural environment, and will also help grow
    the nation's burgeoning tourism industry.
    Source - Santiago Times

    ¶14. Iron, Diamonds May Turn Legal to Mine in Amazon Indigenous
    Reserves
    AUG. 21, 2008 - For decades, Valeria Paye Pereira and her tribe of
    Tiriyo Indians in Brazil's Para state have fought wildcat miners who
    slip across the northern border from Suriname and French Guiana to
    illegally extract gold.  The miners, known as garimpeiros, have cut
    trees, polluted waters with mercury, cyanide and other chemicals,
    and attacked the tribe's wood-and-straw homes. Now, the 1,100-member
    tribe is taking its fight to the nation's capital to stop
    legislation that would allow more mining on its lands. ``The
    garimpeiros bring violence, disease, alcohol and prostitution,''
    said Paye Pereira, 34. She has been lobbying against the measure in
    Brasilia. Opening up Indian territories would ``lead to
    exploitation, not only of the lands and the environment, but of the
    Indians.''  Lawmakers are debating whether to allow companies such
    as Cia. Vale do Rio Doce and Anglo American Plc to tap unexplored
    land after rising global demand caused minerals prices to surge and
    strained existing deposits. While supporters say doing so will curb
    violence and environmental damage caused by illegal mining
    extraction, indigenous groups say it threatens their way of life.
    Source - Bloomberg

    ¶15. Brazil Mulls Sugar Cane Limit to Protect Wetland
    AUG. 05, 2008 - Brazil would restrict sugar cane planting in one of
    the world's largest wetland areas if the government approves a
    proposal to protect the Pantanal area's ecology, according to the
    Environment Ministry. The agriculture ministry has been working for
    a year with state-run agencies on a law to restrict cane planting in

    BRASILIA 00001219  009.2 OF 018

    the Pantanal, amid concern about the environmental impact of the
    crop's rapid expansion. No new ethanol plants, which produce biofuel
    for Brazil's fast-growing fleet of ethanol-powered cars and for
    export, will be allowed in the Pantanal's plains under the proposal,
    but it will permit restricted planting in the region's highlands.
    The proposal would require planters in this region, where cane has
    been cultivated for more than 10 years, to use direct, or no-till
    planting methods, eliminating the use of machinery and
    agrochemicals, the ministry's statement said. About 90 percent of
    Brazil's sugarcane is produced in the center-south region, which
    includes Pantanal.
    Source - Yahoo UK

    --------------------
    Science & Technology
    --------------------

    ¶16. Brazil Harnesses Space Technology to Monitor Deforestation
    JULY 22, 2008 - Brazil will launch a satellite in 2011 to monitor
    deforestation and urban expansion around the world.  Amaztnia-1 will
    carry a UK -made high resolution camera. The United Kingdom-Brazil
    collaboration was announced July 14 at the 60th Annual Meeting of
    the Brazilian Society for Progress in Science.  It is part of the
    continuing UK -Brazil Partnership in Science and Innovation, and
    stems from discussions between governments and research partners
    that began in 2007 during the UK-Brazil Year of Cooperation on
    Science and Technology.  Amaztnia-1 will orbit the Earth 14 times a
    day at a distance of 400 miles, collecting images of several
    countries. It will have three cameras in total, two of them made in
    Brazil and one made in the UK.
    Source - SciDev

    ------
    Energy
    ------

    ¶17. Argentina, Brazil to Develop Nuclear Energy Agency
    AUG. 28, 2008 - Argentina and Brazil are scheduled to address the
    creation of a bi-national nuclear energy agency when Presidents Lula
    da Silva and Kirchner meet in September in Recife in northeast
    Brazil, reports the Brazilian press.  Working together, the
    two-country agency could become one of the world's leading providers

    BRASILIA 00001219  010.2 OF 018

    of enriched uranium. In addition to the plans by Chile, Uruguay,
    Peru and Venezuela to set up nuclear plants, Argentina has two in
    operation, is finishing a third, Atucha II, and is planning to build
    two more.  Brazil has Angra I, Angra II, is planning Angra III and
    six more by 2030, revealed the Brazilian official.  The creation of
    the Bi-national Nuclear Energy Committee (Coben) represents one of
    17 agreements reached in the recent meeting by Presidents Cristina
    Fernandez de Kirchner and Lula da Silva. However, Coben does not
    have the full support of the Brazilian establishment, particularly
    from the Brazilian Navy which for years has been working in the
    development of a nuclear powered submarine and allegedly is jealous
    of its expertise and experience.
    Source - MercoPress http://www.mercopress.com

    ¶18. Chilean Government Pushes Solar Energy Incentives for
    Households
    AUG. 27, 2008 - Chile's Finance Ministry announced proposed tax
    breaks as an incentive for solar water panel installation in middle
    to low-income new home construction.  The plan also includes a fund
    to support renewable energy development initiatives.  If approved by
    Chile's Congress, the proposal will grant tax breaks to partially or
    completely cover the installation of solar-powered water-heating
    systems in certain homes.  Solar installation costs will be
    completely covered in homes valued at approximately US$80,000 and
    less, while installation costs will be partially covered for homes
    valued up to approximately US$180,000.  Installation costs for the
    solar panels on each home are estimated at US$1,340, according to
    the state-owned Chilean daily La Nacisn.  Each solar panel system
    would generate over half the energy necessary to heat its
    household's water, reported La Nacisn.  Officials said making the
    switch from natural gas to solar-based water-heating systems will
    mean monthly savings of up to US$19 for low and middle-income
    families.  The Finance Ministry predicts that the initiative will
    cost the government US$40 million in 2009Source - Santiago Times

    ¶19. Brazil's Biofuel Plane Fleet Grows
    AUG. 20, 2008 - Brazilian biofuel, already available for nine out of
    10 cars on the roads, is also keeping a small but growing fleet of
    aircraft aloft.  Some 200 single-engine, single-seat Ipanema planes
    made by Neiva, a subsidiary of Brazilian aircraft maker Embraer, are
    now burning cheap ethanol made from sugarcane for their crop-dusting
    and public health missions.  The first of the ethanol-fueled EMB

    BRASILIA 00001219  011.2 OF 018

    202As took to the air in 2005, and the company has steadily
    increased production, with 32 turned out this year, said the head of
    the factory in the central west town of Botucatu.  Next year,
    production should stabilize at 36 planes per year.  The biofuel
    technology is only used for the propeller-driven planes, in
    accordance with the substantial restrictions for light aircraft.
    Source - Yahoo

    ¶20. Brazil Wants Help from the United States in Managing Nuclear
    Waste
    AUG. 06, 2008 - Brazil asked the United States for help managing
    waste from its nuclear reactors during a visit from American Deputy
    Secretary of Energy Jeffery Kupfer.  Brazilian Mines and Energy
    Secretary Edson Lobao said the United States has made significant
    advances in the storage of residue from reactors.  Kupfer's visit
    comes as Brazil is preparing to restart work on its third nuclear
    plant, Angra 3. One of the requirements for the plant's
    environmental license was the development of a better waste storage
    system.  Currently, Brazil's nuclear waste is stored in a system of
    "pools", long criticized by environmentalists who say the system
    risks spilling waste into the ocean.  "The United States sees
    nuclear energy as an essential part of its energy supply into the
    future. We are in the process of constructing new reactors after a
    long period and the theme of waste management is an essential
    component of that process", Kupfer said.
    Source - IHT

    ¶21. Biodiesel to Bring Electricity to Amazon Villages
    JUL. 31, 2008 - Oil from native tucuma, ouricur and murumur palm
    trees will be used to provide electricity to isolated communities in
    the depths of the Brazilian Amazon, which are too remote to supply
    with power by conventional means.  A research team is preparing to
    start producing biodiesel this year at a plant in Carauar, a
    district of 25,000 people that can only be reached by a
    1,600-kilometre river journey, or by a two-and-a-half hour flight
    from Manaus, the capital of Amazonas state. Roberto Figliuolo, an
    expert with the National Institute for Amazon Research (INPA), told
    IPS that there are "10 promising palm species", which are found in
    "dense natural stands" and yield good quantities of oil. However,
    the team has worked most intensively with the tucuma palm because it
    is abundant and already has a partially developed production chain.
    The Brazilian government has for several years been implementing its

    BRASILIA 00001219  012.2 OF 018

    program "Light for All", with the aim of supplying electricity to
    millions of Brazilians who still do not have it. In more populous
    areas, extending power lines was the method of choice.  But in the
    Amazon region, an area of five million square kilometers with low
    population density, alternatives are being sought based on local
    energy production, such as solar or wind energy, or thermoelectric
    generation using oil from native species or wood residues.
    Source - IPS News

    ¶22. Brazil: Petrobras Launches Biofuels Subsidiary
    JULY 30, 2008 - Brazil's semi-public oil company Petrobras has
    launched a new subsidiary to run its growing biofuels operations,
    looking towards building production capacity to meet growing global
    demand for ethanol exports.  The new subsidiary, called Petrobras
    Biocombustivel, will coordinate Petrobras' significant biofuels
    investments (US$1.5 billion over five years) which are currently run
    by various units of the company.  Through joint ventures with
    foreign investors, Petrobras plans to buy minority stakes in ethanol
    mills in Brazil and abroad, with an eye towards markets such as
    Venezuela, Japan and the U.S.
    Source - RIO DE JAN   00000205

    ¶23. Russia and Venezuela Will Coordinate on Energy
    JULY 23, 2008 - President Hugo Chvez of Venezuela and President
    Dmitri A. Medvedev of Russia declared that their countries would
    more closely coordinate their actions on global oil and gas markets,
    and work together on foreign policy issues.  Russian officials
    stressed the business significance of the new cooperation, including
    three new deals to expand the presence of Russian oil and gas
    companies in Latin America.  Russia's gas and oil giants, TNK-BP,
    Lukoil and Gazprom, each signed agreements in Mr. Chvez's presence
    to explore reserves in Venezuela's Orinoco Valley.  Lukoil and TNK
    -BP signed agreements to conduct joint explorations with the
    Venezuelan state oil company, Petrsleos de Venezuela.  Gazprom
    agreed to conduct a geological study of gas reserves in the area,
    and reportedly was discussing the possibility of helping to build a
    pipeline to Brazil.
    Source - The New York Times

    --------------
    Climate Change
    --------------

    BRASILIA 00001219  013.2 OF 018

    ¶24. Peru Mountain Glaciers 'Receding Rapidly'
    July 29, 2008 - Climate change-induced glacier melts have cost
    northern Peru's mountains 26 per cent of their surface area in the
    last 33 years, satellite images have confirmed.  The reduction is
    equivalent to 188 square kilometers of the Cordillera Blanca, the
    highest tropical mountain chain in the world. The mountain range is
    home to more than seven hundred glaciers, with the glacier Huascaran
    declared a world heritage site by UNESCO. Marcos Zapata, head of the
    glaciology unit at the National Institute of Natural Resources
    (INRENA), says that the glaciers are melting by around 20 meters per
    year - compared to a rate of nine meters per year recorded until
    ¶1977. "At present, there are more melting glaciers and therefore
    there is a relative increase in flows in rivers and streams", Nelson
    Santillan, a researcher at the INRENA glaciology unit, told
    SciDev.Net.  Santillan says that while the melting currently does
    not pose have any significant problems, people must be warned about
    the correlation with future reductions in water flow, water storage,
    and year-round water availability. INRENA estimates that reductions
    in water flow could occur as soon as 2020.  This could have severe
    consequences since recent Peruvian population growth and
    agricultural expansion has centered on water-rich areas downstream
    of the glaciers Santillan says.
    Source - SciDev

    -----------------------
    Sustainable Development
    -----------------------

    ¶25. Bolivia: Businesses Take On the Green Challenge
    AUG. 20, 2008 - What do Bolivia's largest textile mill, an organic
    cacao cooperative and an indigenous-run tourist hostel in the Amazon
    have in common? The answer lies in the path, shaky but inspiring,
    that they are all taking towards sustainable production.  In the
    factories of the Bolivian corporation America Textil S.A. (Ametex),
    even the light switches invite you to "Save Energy".  The company
    says it is committed to optimizing its production processes,
    reducing pollutants, saving resources and recycling inputs and
    materials. Based in La Paz, Ametex is Bolivia's largest textile
    factory. More than 3,000 workers produce 150 to 190 tons of textiles
    per month -- 85 percent of it for the U.S. market.   All of its
    factories are oriented towards sustainable production, in compliance

    BRASILIA 00001219  014.2 OF 018

    with the Environment Act.  Source - IPS News

    ¶26. Latin America: Ingenuity at the Service of Sustainable Business
    JULY 28, 2008 - Four creative sustainable development projects that
    have enjoyed success in Latin America received media attention in
    July, demonstrating a shared common denominator: the possibility of
    replication elsewhere in the region.  The four sustainable examples
    are a company that will extract silver from the same contaminants it
    proposes to clean up; a cooperative of the formerly unemployed that
    will export designer clothing; small farmers planting new varieties
    of manioc that double the yield with fewer agro-toxins; and groups
    in  linking agriculture in the Amazon with protection of the forest.
     The article goes into detail about the following four experiences:
    1) Bolivia: Recovering Potos's Silver; 2) Argentina:  Unemployed
    Come Together (Argentine Movement of Unemployed Workers (MTD) of La
    Matanza); 3) Venezuela: Cassava Twice Over (small farmers in the
    central Venezuela state of Cojedes); and 4) Brazil: Coexistence of
    Forest and Crops.  For more information please go to
    Source - IPS News

    ¶27. Implementing a Butterfly Farm: Guyana's Latest Sustainable
    Initiative
    JULY 20, 2008 - Iwokrama, a center for rainforest conservation in
    the heart of Guyana's rainforest, is known worldwide for its
    innovative approach to preserving tropical rainforests and creating
    livelihoods for local communities. Their focus has been to create
    programs that utilize the forest sustainably, allowing for a mutual
    benefit between the people and the forest itself.  Currently,
    Iwokrama has a number of initiatives under its umbrella, including
    eco-tourism, sustainable forestry, on-going research projects, and
    training programs. Amid these bustling projects, a new one has
    emerged: butterfly farming. Sitting on one million acres, the
    Iwokrama reserve is managed by the seventeen local communities
    within the reserve called the North Rupununi District Development
    Board (NRDDB).  The butterfly farm is a partner with University of
    Warwick, England and was provided a 333,629 pound start-up grant
    from the Darwin Initiative.
    Source - Mongabay

    NEWS FROM THE FRONT - ESTH ACTIVITIES IN SOUTH AMERICA

    ¶28. Colombian Marine Environmental Workshop - (Larry Gumbiner,

    BRASILIA 00001219  015.2 OF 018

    William Popp, Larry Sperling): ESTH officers from US Embassy
    Colombia and OES and OMC representatives from Washington, DC
    collaborated in the organization and implementation of US Military
    Southern Command-sponsored Marine Environmental Security Workshops
    in Cali and Cartagena in July, 2008.  Workshop themes covered marine
    environmental security, protection, and law enforcement training
    with interactive participation of representatives from the Colombian
    navy, Colombian environmental and fisheries authorities, and NGOs.
    Specific topics included multilateral environmental agreements;
    illegal, unregulated and unreported fishing; marine protected areas;
    marine pollution and ballast waters; CITES; and coral reef crime
    scene investigations.

    ¶29. Ecuadorian Conference on Sustainable Urban Mobility (Bridget
    Premont, Peter Martin): In July 2008, ESTH officers from US Mission
    to Ecuador supported the participation of United States air quality
    expert Catherine Witherspoon at an Ecuadorian conference
    (Sustainable Urban Mobility) and workshops focused on air pollution
    and climate change.  Ecuadorian audiences and government officials
    in Quito and Guayaquil showed intense interest in Ms. Witherspoon's
    presentations on advanced air pollution controls for vehicles and
    fuels, health impacts of air pollution (e.g., link to heart attacks
    and premature mortality), bio-fuel use (ethanol and biodiesel),
    improvement of vehicle maintenance practices, and alternative
    transportation models.  Additionally, her climate change
    presentations raised awareness on risks of increased disaster
    frequency; long-term reductions in water supplies; food security
    risks on local and global scales; impacts of deforestation on global
    greenhouse gas emissions; land-use decisions; and international
    markets for carbon trading.

    ¶30. NREL Renewable Energy Speaker Visits Chile- (Dinah Lee Arnett):
    Public Affairs Section Santiago hosted Strategic Speaker Doug Arent
    from the National Renewable Energy Laboratory in a highly successful
    program August 11-13.  Mr. Arent addressed government officials,
    academics, non-governmental organization representatives and other
    private and public sector contacts about the public policies,
    regulatory and investment framework necessary for the development of
    renewable energy technologies in Chile, a priority for Chile and the
    Embassy.  Mr. Arent's visit received substantial media coverage and
    invaluable support from US Embassy Santiago's Front Office. REFTEL
    BRASILIA 1172.

    BRASILIA 00001219  016.2 OF 018

    ¶31. NREL Energy Expert Continues to Argentina - (Angeles Coscolla,
    Sol Rubio): Following Dr. Arent's successful visit to Chile the NREL
    expert continued to Buenos Aires August 14 and 15.  There he met
    with private sector experts, university students and professors, and
    the Ministry of Foreign Affairs to discuss renewable energy and
    energy security.  REFTEL BRASILIA 1172.

    ¶32. Environmental Law Enforcement Experts Visit Argentina - (Angeles
    Coscolla): The US Embassy in Buenos Aires sponsored in July the
    participation of two specialists in Environmental law enforcement
    and inspections.   The workshop organized with the Office of
    Environmental Control and Prevention at the Secretariat of
    Environment and Sustainable Development consisted of a four day
    training program.  The audience of national government inspectors
    and controllers participated in site visits, including a visit to
    the industrial facilities along the severely polluted Riachuelo
    River.  The success of this training workshop proved once more the
    technical collaboration between the EPA and the Secretariat of
    Environment.  NOTE: EPA experts also carried out a similar training
    in Chile a week after being in Argentina.

    ¶33. Peru hosts Biofuels Workshop - (Marcos Mandojana, Esteban
    Sandoval): Using EEB funds, US Embassy Lima in coordination with the
    HUB hosted biofuels workshops in Pucallpa and Lima August 25 and 26.
     The workshops focused on environmental concerns, social challenges,
    and economic risks and opportunities of palm-oil, jatropha, and
    sugar cane as sources of biodiesel.  Invited speakers included
    Timothy Killeen (Conservation International), Jos Toasa (USDA), and
    Miguel Valderrama (Fedepalma/Colombia palm-oil expert).  The newly
    appointed Minister of Environment of Peru, Antonio Brack,
    participated in the event and spoke of Peru's environmental
    priorities with respect to the expanding market of biofuels.

    ¶34. Suriname Focuses on Combating Illegal Wildlife Trafficking -
    (Geneve Menscher):
    ESTH officer at US Embassy Paramaribo organized a campaign promoting
    the Harrison Ford Wildlife Trafficking Public Service Announcements
    (PSAs), broadcasting the PSAs thirty-eight times over three
    television stations in Suriname during the month of June.  In
    launching the PSAs promoting animal trafficking awareness, the US
    Ambassador to Suriname hosted an exclusive lunch for official,

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    private sector, and non-governmental stakeholders including the Head
    of Game Wardens from the Ministry of Physical Planning, Land and
    Forest Management; the Deputy Director of Customs; representatives
    from the Tourism Board and industry; non-governmental organizations;
    veterinarians (export licensing); and the media.  Suriname's nascent
    tourism industry and lack effective protections for endangered
    species put this country at great risk for supporting animal
    trafficking for food, animal parts, and exotic pets.

    ¶35. Guyana Aquaculture Partnership - (James Plasman): The
    U.S.-funded Guyana Trade and Investment Support (GTIS) program
    recently completed the first stage of an aquaculture partnership
    with the Ministry of Agriculture and local tilapia producers in
    mid-August, 2008.  As part of the GTIS capacity building outreach
    effort, University of Arizona professor Kevin Fitzsimmons visited
    Guyana to provide technical assistance to some 15 local tilapia
    farmers, integrating theory and practical advice on feeding,
    building ponds, maintaining water quality, and dealing with
    diseases. Dr. Fitzsimmons' visit follows the opening of the
    U.S.-sponsored Satyadeow Sawh Aquaculture Station in Guyana, a
    tilapia hatchery that will eventually supply 200,000 fingerlings per
    year to local aquaculture farmers.

    ¶36. Bolivia Holds Biofuels Dialogue - (Michael Stewart): As a part
    of a US Energy Officers dialog organized in Santa Cruz, Bolivia in
    August by Mission Energy officer, visiting officials held
    consultations with representatives from Archer Daniels Midland
    (ADM), Guabira (a local sugar and alcohol producer), and Gravetal (a
    soy company).  Presentations by these local companies provided
    grounding on local realities of biofuels project development.  Tim
    Killeen with Conservation International, a resident scientist and
    expert on biofuel development in the Amazon basin, presented
    information on environmental implications and sustainable biofuels
    development concepts.  All parties agreed that while Bolivia enjoys
    great potential for biofuel development, political obstacles and
    subsidized prices for hydrocarbons prevent any large scale projects
    from moving forward.

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