Washington, DC and Rio de Janeiro — US/Brazil biofuel plans may have severe repercussions on millions of rural poor, the anti-poverty agency, ActionAid, warned today.

This Saturday, Presidents George Bush and Lula Da Silva will meet in Camp David to continue discussions on increasing ethanol production and trade. Under proposed plans, the fuel would be derived primarily from Brazilian sugarcane sources.

Ethanol represents a viable alternative energy solution. However, ActionAid urges governments to take into account that the production of such biofuels has thus far resulted in the concentration of land, resources and income into the hands of the few, the destruction of endangered rainforests, contamination of soil, air and water, and the expulsion of rural populations from their homes.

"We're talking about unfair trade-offs. Increasing ethanol production through land grabs, reducing the amount of farmland for food crops, and harming the environment will only serve to increase misery," said Celso Marcatto, Food Rights Coordinator at ActionAid Brazil.

"This headlong rush into biofuel production seems not so different from the push to conclude WTO and other trade pacts no matter what the social or environmental costs," said Karen Hansen-Kuhn, food rights director at ActionAid USA.

"The US government should be thinking through a careful approach to biofuels based on diversified production of a mix of crops, including native grasses. The promotion of local ownership and processing facilities, as well as sustainable agricultural practices, is similarly crucial," Hansen-Kuhn added

"The benefits of biofuels cannot be achieved at the expenses of increased food shortages, environmental degradation, and poverty. It seems that social and environmental consequences of sugar cane production are not being taken as seriously as they should. This is quite worrisome," conclude Marcatto.

ENDS

Contacts: Sandy Krawitz, ActionAid USA +1-202-492-7207, sandy.krawitz@actionaid.org

Alexandre Polack, ActionAid Americas Office, Rio de Janeiro, Tel: +32 4 73 86 18 92 or +55 21 21 89 46 21 alexandre.polack@actionaid.org

Interviews can be conducted in ENGLISH, SPANISH, PORTUGUESE and FRENCH.

Note to editors: ActionAid works with more than 25 million poor and excluded people in 47 countries in Africa, Americas, Asia and Europe to support them in securing their rights and eradicating poverty. For more information, visit www.actionaid.org