USGC: REEAC makes recommendations on the development of the ethanol market

By US Grains Council | January 14, 2022
Before the end of 2021, the U.S. Department of Commerce’s Renewable Energy and Energy Efficiency Advisory Committee (REEEAC) released its updated recommendation fact sheet, aimed at encouraging the department to provide support to the process. inter-agency for the development of the global ethanol market.
The committee, including the U.S. Grains Council’s Director of Global Ethanol Market Development, Brian Healy, recommended that the Secretary of Commerce focus on the following key constraints to increasing U.S. ethanol exports:
– Price disparities between renewable energy products (ethanol) and non-renewable energy products leading to a reduction in global ethanol prices;
– Trade disputes in the main priority markets;
– International standards for clean fuels;
– Lack of enforcement of policies in key markets;
– Greater recognition of the greenhouse gas (GHG) reduction benefits of ethanol; and
– Greater interagency collaboration between the International Trade Administration (ITA) and the Foreign Agricultural Service (FAS).
“These recommendations, endorsed by the entire REEEAC, reinforce the need for continued inter-agency collaboration on ethanol market development,” Healy said. “We have seen tariff barriers, lack of policy enforcement and other challenges overcome through collaboration and the committee recognizes that value.”
If the key constraints are given due attention, REEEAC expects the global ethanol trade to expand making the global landscape more competitive.
In addition, the committee created six indicators of success following the implementation of its recommendations, including the elimination of price disparities between energy products; the elimination of India’s fuel ethanol import ban; reduce ethanol tariffs to historically low levels; ensure enforcement of ethanol use policies in international markets such as India and Nigeria; deliver promotional workshops that support the narrative of ethanol as a mechanism to help countries achieve their net zero carbon emissions goals; and the establishment of a working group on bioenergy trade issues between ITA and FAS.
As a Council-supported commodity, the USGC will continue to monitor the progress of REEEAC recommendations, while working on the ground in ethanol markets around the world to showcase the benefits of ethanol.
“This has been an extremely successful REEEAC charter for the industry as a whole,” Healy said. “Public-private partnership remains key to advancing the competitiveness and benefits of ethanol.”