With environmental issues suddenly becoming as mainstream as the Oscars, Brazil is on the verge of a huge opportunity to cash in as the world's leading producer of ethanol, and expectations are big for a planned U.S.-Brazilian agreement on biofuel during Bush's visit to São Paulo on March 8-9. Ethanol can be produced from any number of organic products, but none are as efficient as sugarcane, which gives Brazil an advantage as the decades-long leader in developing the technology to harness such energy. The U.S., in turn, would rather depend on fuel from friendly countries like Brazil (instead of hostile petrol suppliers like Iran and Venezuela), while in the meantime earning goodwill among Latin Americans and showing a commitment to clean energy. The problem is that high tariffs bar Brazilian ethanol from becoming a realistic alternative to petroleum, and Bush won't be able to negotiate any significant changes without the support of Democratic Congress. Hopes are still high, though, that Bush and Lula will make progress in their meeting this week, as the partnership could be very beneficial for both sides; Brazil would provide the resoures and the technology and the U.S. would provide the capital to invest in building the market. Environment-friendly energy is very nice, but saving money and creating jobs is what speaks the loudest to both governments.

The local press is already having a field day with Bush's visit (he'll be accompanied by Laura, Condoleeza, and a team of 250 people), and he will be protected by the most intense security in the history of Brazil. The details of all the extreme contingency plans are amusing, and it will be only a matter of time before a few jokes on the subject start making the rounds.

A source of Brazilian pride is exactly what the Americans are starting to recognize: the country's leadership in energy innovation. Nearly all new cars here run on ethanol, and in 2006 Brazil became energy self-sufficient. Gas stations everywhere have had "alcohol" pumps for decades. So while Bush is publically coming around to the benefits of biofuel, during his visit his private car will run only gasoline brought from the U.S. -- not exactly an act of faith...