Brazil's Eucalyptus Plantation Plans Halted by Delayed Curbs on Native Wood Fuel

The Brazilian eucalyptus industry is facing uncertainty due to delayed curbs on native wood fuel use. An agreement aimed at phasing out the use of native forest wood for energy generation in corn ethanol plants has been put on hold by the state government of Mato Grosso, led by Governor Otaviano Pivetta.

The agreement, signed in June between the state government and the local prosecutor's office, was meant to establish rules for the phase-out. However, the decree required to implement the phase-out has been postponed.

Industry advocates argue that plantation-grown eucalyptus offers a more renewable alternative of biomass for corn ethanol plants. They claim it requires long-term investment and regulatory certainty, which is currently lacking.

Fausto Takizawa, president of Mato Grosso's reforestation association Arefloresta, stated that 'investment is indeed affected.' He added that the delay raises a 'yellow flag' for anyone considering investing in forests.