3 72 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation thingswouldgivetheregionastrongerpositiontocompeteinworldmarkets. TheLACregionhasenormouspotentialintermsofenvironmentaland energyresources.Itisoneoftherichestbiologicalzonesontheplanet , hosting 40percentoftheworldsanimalandplantspecies ( CEPAL2010:120 ), fresh waterresources , enormousfertilelandsandfossilfuelreserves. Withregardtorenewableenergies , LACisparticipatinginthesearchfor geothermal , water , solarand windpower , amongotherthings.Ithaslarge expansesofsoilslyingfallow andlow productivityperhectare , increasing developmentofmonoculturesforbiomass ( sugarcane , soy , palmtree ) andincipient developmentofsecondgenerationbiofuels ( notreadyforcommercialisationforadecade orso ) . 2.1 RenewableversusNonrenewableEnergy Intheirreversibleprocessofbuildingupaglobalbiofuelsmarket , LAC countriesareparticipatinginvariousways , althoughBrazilistheprincipalactor inthissector.However , biofuelsarenotseenasthesolutiontoenergyneedsin LAC.Theyarenotpromotedbythesamekindofenthusiasticpropagandaasin theEuropeanUnion , beingconsideredacomplementaryenergysupply , together withotheralternatives , suchasbiogas , solar , wind , hydroelectricandgeothermal power , andeven — despitethecontroversy — nuclearpower.Furthermore , biofuels productionisthesubjectofheateddebate , asitisaproventhreattofoodsecurityand canleadtohungerinvulnerablepopulations. Intermsofnonrenewableenergy , someLatin Americaneconomiesare basedongasandoilproduction , especiallyVenezuelaandBolivia.Nevertheless , itisestimatedthatin2010oilproductionwillreachitspeakandthenstartto decline ( Sohr2009:2223 ) .VenezuelasreservesexceedthoseofSaudiArabia , however , andithasthelargestnaturalgasdepositsinSouth America.Oil productionisalreadydecliningin mostproducercountriesin LAC , dueto inefficiencyandalackofexternalinvestment — foreigndirectinvestmentfellby 41percentinBoliviain2007andby34percentinEcuador ( WWC / FLACSO 2008:23 ) .Thisshowsthatpoliticalandsocialstabilityisaconditionthatmost ofLACcountriesstillcannotguarantee. Despitetheinternalandexternalproblems , thisdeficitcouldbeovercomeby meansoftheunmeasuredcapacityoflightoilfieldslocatedoffshore , mainlyoffBrazil ( CariocaandTupireserves ) .LatinAmericastillhasalotofsurfaceoiltoexploit , and althoughthishasbeendepleted , itcouldevenshifttothenextstageof “ type2 petroleum ”, whichwillrequirelargerinvestmentsinordertobecomeoperationalinthe nearfuture.Clearly , the “ oilissue ” isnotoveranddonewithinLAC.
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China, the EU and Latin America : current issues and future cooperation
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