Commission's Biofuel Sustainability Criteria Shows Commitment But Fails to Provide Clear Guidance for Industry

Brazilian sugarcane ethanol industry calls for increased clarity around biofuels sustainability rules as industry moves forward with certification scheme

BRUSSELS, June 10, 2010 - The Brazilian Sugarcane Industry Association (UNICA) welcomes the
European Commission's biofuels guidelines on sustainability criteria released
today but calls for clearer definitions to allow the biofuels sector to
develop a comprehensive certification scheme that fully meets Europe's
requirements.

"Today's announcements are an important first step. They provide examples
of compliance and details on improved agricultural management practices.
However further issues still need to be addressed, including the criteria for
defining highly biodiverse grasslands as well as a methodology for
identifying degraded lands. We urge the Commission to fill these gaps as soon
as possible, so that industry has a clear framework within which to operate,"
says Emmanuel Desplechin, Chief Representative in the European Union for the
Brazilian Sugarcane Industry Association (UNICA).

Brazilian sugarcane ethanol's environmental practices are a global
benchmark and the industry is committed to not only demonstrate compliance
with the EU's sustainability requirements, but to go beyond the established
criteria. The Brazilian sugarcane industry is already taking steps towards
sustainability certification, for example through the Better Sugar Cane
Initiative (BSI). This international roundtable, gathering producers, buyers,
end users and non-profits, is establishing transparent and verifiable
criteria for sustainable sugarcane-derived production, focusing on
continuously improving outstanding social, environmental and economic issues
such as soil productivity, rational water use, waste water management,
biodiversity maintenance and equitable labour.

ABOUT UNICA

The Brazilian Sugarcane Industry Association (UNICA) represents the top
producers of sugar and ethanol in the country's South-Central region,
especially the state of Sao Paulo, which accounts for about 60% of the
country's sugarcane harvest and of total ethanol production. UNICA develops
position papers, statistics and specific research in support of Brazil's
sugar, ethanol and bioelectricity sectors. In 2009, Brazil produced an
estimated 598 million metric tonnes of sugarcane, which yielded 33 million
tonnes of sugar and 25.5 billion litres of ethanol, making it the number-one
sugarcane grower and sugar producer in the world, and the second-largest
ethanol producer on the planet, behind the United States.

    FOR MORE INFORMATION
    In Europe:
    ----------
    Rebecca Brown            +322-894-9029        unica@webershandwick.com

    In Brazil:
    ----------
    CDN Corporate Communications
    Rosa Webster             +5511-3643-2707      rosa.webster@cdn.com.br
    Mariane dos Santos       +5511-3643-2730      mariane.santos@cdn.com.br

In Europe, Rebecca Brown, +322-894-9029, unica at webershandwick.com; or in Brazil, Rosa Webster, +5511-3643-2707, rosa.webster at cdn.com.br, or Mariane dos Santos, +5511-3643-2730, mariane.santos at cdn.com.br, both of CDN Corporate Communications, all for The Brazilian Sugarcane Industry Association (UNICA)