Moz Gets a Hand from EU and Brazil

Mozambique will get more help from the European Union and Brazil to develop bioelectricity and biofuels as the three parties are expected to sign an agreement tomorrow.

The EU and Brazil will begin studies to determine the best option to develop bioethanol, biodiesel, and bioelectricity projects in the African country. Unlike Brazilian bioethanol, which is subject to high import tariffs at EU borders, African-produced biofuel would be subject to minimal tariffs which will aid the EU in reaching its goal of meeting 20% of its energy needs via renewable sources by 2020.

By partnering with global bioethanol leader Brazil, Mozambique would be able to make a new and cheaper supply in Africa. However, companies will be forced to follow the proper regulations that the EU has in place regarding the EU’s commitment to increasing biofuels. Mozambique’s producers will be forced to comply with the EU’s procedures, safety, and environmental regulations in order to export to the EU market.

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