Biofuels Bolster Business Deal

The European Union has committed to the goal of increasing the use of biofuels to 20% throughout the region by 2020. To do this, they have decided to work with Brazil and Mozambique. This agreement will follow recent trends to increase renewable energy sources, and will greatly benefit both Brazil and the EU.

Ultimately, European biofuel goals initiated the project and while projects are set to start in Mozambique, both Brazil and the European Union are interested in working with other developing countries as well. A major component of this agreement is researching the best way to develop biofuels in Mozambique. Mozambique has recently become a biofuel leader in Africa, making them an appealing choice for this project.

The European Union initially was interested in working with Brazil to reach their renewable resource goals because of their experience with producing biofuels. However, importing from Brazil would lead to extremely high import tariffs, which created a challenge for the EU to reach their energy goals. This led them to look for cheaper options. Mozambique holds promise because of their low import tariffs along with their rich natural resources.

There are certainly a lot of benefits to this program. The European Union will have a better chance to reach its energy goals, Brazil will gain business by building new production bases in Africa, and Mozambique will gain jobs and more international trade. However, some still fear that this may not necessarily benefit everyone. Many are concerned that the Brazilian oil companies will gain most of the profits, while Mozambique might suffer land and food shortages. There are also environmental concerns that this project may do more harm than good. While these are valid concerns, this project will spur international cooperation and will hopefully lead to job growth and new business ventures.