Agrofuels constitute an important part in new global renewable energy alternatives. In particular Brazil with its booming ethanol industry has been at the forefront of this development and the Brazilian government regards agrofuels as a key national energy strategy. However, the industry has not been without critics. Socio-environmental problems have changed global attitude towards agrofuels which was once seen as the remedy for ensuring energy security while combating climate change. By analyzing available data, reviewing theory on agriculture, conceptualizing sustainability and conducting a country analysis, the paper found that agrofuels constitute an important part for Brazil´s macro economic development with increasing export potential in the near future. However, the paper also found some unsolved socio-environmental problems related to agrofuels in Brazil. Therefore, the thesis comes to the conclusion that agrofuels cannot be regarded as sustainable as long as economic development comes at the expense of the environment and society.

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The author has his professional background in international economics with expertise in microfinance and climate policies. He researched, worked and studied in Europe, India and South America. In 2008 the author published a book on microfinance in India. The author currently works in the field of international development and lives in Berlin.