Allies in Biofuels. Opportunities in the Dutch - Argentinean biofuels trade relation

First generation biofuels as an environmental solution are showing their own negative environmental, social and economic side effects. These need to be dealt with, because it is apparent that those same biofuels can be produced in a sustainable manner, thereby contributing to a healthier planet. Since both Argentina and the Netherlands would benefit from sustainable biofuels trade, policy measures need to be taken to guide the proper way. In what manner could bilateral cooperation concerning biofuels, optimize trade and policy output in both countries? By answering this question, one can hand solutions to upcoming problems - barriers to a sustainable energy structure - while at the same time facilitating trade between Argentina and the Netherlands. Besides providing information about the European, Dutch and Argentine market, this report presents an overview of biofuel policies. Special attention is given to the issue of sustainable biofuel production, in order to spread the necessary awareness, create wide support for corresponding politics, and offer opportunities for cooperation to prevent future entrapment. An entrapment, which could easily occur when actors in politics and business ignore international requirements for sustainable biofuel production. The research aims to produce the following output: Policy recommendations regarding the promotion of environmentally sound biofuels in both countries; A set arena to support a policy dialogue between both countries; An overview of current Dutch and Argentinean biofuel policies; Up to date information on current volumes of production, consumption and trade; Data with contact information of partners in both countries. Argentina shows an extremely professional agricultural sector, producing large quantities of vegetable oils, specifically of soybean. This sector has started to turn its attention towards biofuels - particularly to biodiesel. Projected production (for 2007-2008) is astonishingly high. The sector mainly focuses on first generation biofuels and has only little experience with rapeseed, and second generation fuels. It is in both these areas that Dutch and European experience can play a role to develop Argentina's biofuels sector. Argentina, on the other hand can produce the amounts of biofuels that Europe and the Netherlands are demanding for in the short run. The outcome of research shows several recommendations to change biofuels policies for both countries. Furthermore, areas for cooperation were defined. In short: Dutch biofuels policy regarding international research and cooperation projects is too narrow. Argentina is an excellent partner but until now completely unnoticed. Teaming up with Brazil and making use of the same financial structures would be a possibility for the incorporation of Argentina in Dutch foreign biofuels activities; The Dutch initiative on criteria for sustainable production of biofuels appears overachieving, and hardly workable for producing countries. The dialogue with those countries - such as Argentina - should be intensified, in order to develop at least voluntary agreements, and to guarantee that both producer and consumer country are on the same team. The process is a two-way street; Argentina needs to stabilize policy development in order to bring stability to the biofuels sector and promote investments. Also, Argentina needs to develop a long-term strategy on biofuels and more actively pursue its national interests in the international arena specifically in terms of trade issues (WTO, normalization); Argentina's policy needs diversification. Brainstorming with experienced Dutch and European counterparts can distill instruments that are suitable for Argentina. Combined projects between Dutch and Argentinean institutes (SenterNovem, ECN, WUR, INTA) would be profitable in this area, as well as on more practical research regarding crop's life cycles, energy balances, technologies, etc. Modifications to policy and cooperation as described, can only improve the likelihood of successful policy outcome in both countries.