SPRING 2008 . . . . Page 1

Newsletter Update, David Willers, BSI Project Manager

We have had a very busy first quarter during 2008. Highlights of this period have included the appointment of  technical working group leaders, Peter E T Turner (Agronomy), Maryline Guiramand (Social), and Dr Peter Rein (Processing and Milling). The entire BSI membership welcomes them on the team. The work this well qualified group will be doing is detailed further down below, but meanwhile their professional details can be found on the BSI website.

The quarter has also provided us with an opportunity to welcome an important new corporate member – Shell. Shell’s involvement is further evidence that business is extremely serious about responding to the challenges involved in producing bio-fuels from sugarcane.

In the United Kingdom, the Renewable Transport Fuel Obligation comes into effect from April. It is designed to ensure that 2.5 % of fuel is formed of bio-fuel rising to 5% by 2010.

CAPTION: Jeroen Douglas Solidaridad/Fairtrade Project Manager called on Hari Morar Chairman BSI Steering Committee at the Tate and Lyle Refinery in London last week to brief the BSI secretariat on the work of Solidaridad and a new initiative called "Good Inside" concept which is taking root in the EU.

There have been questions raised in the media in the past few months about the real benefits of bio-fuels and concerns at the impact of bio-fuel crops on rainforests and food production. Some of these concerns may be overstated however, since they often neglect to take into account better management practices which are already being rolled out across the bio-fuels sector to improve matters. The BSI in particular believes the industry has enormous potential to deliver sustainable ethanol in the case of sugarcane and this is precisely why we are working to promote measurable improvements in key environmental and social (E&S) impacts of sugarcane production and primary processing.

The BSI has developed draft Principles and Criteria (P&C) that provide a framework for assessing and enhancing more sustainable practices in the sector However it is worth noting that BSI members recognize that there are also sound business reasons to identify and adopt more sustainable sugar production and processing practices, and BSI Principles and Criteria provide a framework within which such practices can be demonstrated. They address sugar production in the field and processing issues in the mill (and as appropriate further processing to ethanol), they incorporate economic, financial, environmental and social dimensions and reflect good industry practices for the sugar sector.

One reflection of the growing world wide interest in the topic of bio fuels sustainability are the number of hits on the BSI website – rising from around 2000 a month a year ago to 68000 today. In part this is also a reflection of a more determined approach by the BSI towards achieving its objectives.

Towards the middle of 2007, the BSI was placed on a more businesslike operational footing, after a period of conceptualisation by its founding members. Finances were consolidated, new members were recruited, and in general the BSI began to assume a conventional organisational structure.

Highlights of this period include: