http://www.planetark.org/dailynewsstory.cfm/newsid/13335/story.htm
Planet Ark Environmental News:
Argentines urge framework to spur biodiesel output

ARGENTINA: November 16, 2001

BUENOS AIRES, Argentina - Promoting biodiesel production in Argentina 
will require a secure legal framework and a government commitment to 
producing the environment-friendly fuel, proponents said yesterday.

A recent decree that will make biodiesel exempt from a fuel transfer 
tax for 10 years is a key first step, but politicians and businesses 
that seek to encourage the development of a national biodiesel 
industry say more is needed.

Biodiesel, a fuel that is produced from oilseeds such as soybeans and 
sunflowers, has been hailed as a non-polluting energy source, one 
that would help Argentina meet the goals set by the Kyoto accord on 
global warming.

"I think it would be fitting to establish broader legal and fiscal 
norms for the production of biodiesel," said Angel Rozas, governor of 
Chaco province, in a speech at a biodiesel panel.

Rozas said he plans to do just that at the local level.

The government of the northern Argentine province of Chaco will 
present a bill this week to the provincial legislature aimed at 
promoting biodiesel production.

The bill would exempt biodiesel production from provincial taxes for 
15 years, mandate that official vehicles use biodiesel and require 
that biodiesel account for 5 percent of the diesel sold in the 
province starting three years after the law is passed.

"Biodiesel is one way Argentina can contribute to the reduction of 
greenhouse gases and comply with the protocols laid out by Kyoto," 
said Felipe Sola, deputy governor of Buenos Aires province and a 
secretary of agriculture.

Only a handful of plants are currently producing biodiesel, including 
two in Santa Fe province and one each in Jujuy and Buenos Aires 
provinces, but about a dozen new projects are under way.

Several bills have been presented in Congress on the national and 
provincial level to promote and regulate the production and use of 
biodiesel.

Biodiesel proponents also argue a developed biodiesel industry it 
would help provincial economies by creating jobs, increasing output 
of value-added products and trimming costs associated with using 
diesel fuel.

"This is very important for regional economies, areas where producers 
can make the vegetable oils and also the biodiesel that they will use 
in the fields," said Jose Luis Martinez Justo, president of 
Investigaciones Cientificas Biotecnologicas, a biodiesel plant 
outside of Buenos Aires.

REUTERS NEWS SERVICE


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