Except don't they burn down rain forest in order to get room to plant sugar cane?
We have to look beyond alternative fuels and address the total energy usage of our society.
I agree with second point strongly - Amory Lovins*, one of the few intelligent "greens," for many years has been making the point that the largest, most economical and most environmentally friendly source of energy is conservation and greater efficiency. Read his article in Scientific American of about 6 months ago. (Just as I think the CIA has done more harm to US than any other agency of ANY government, I think Green Peace has done more harm to the environment than any business group! - For example, the radioactivity released into the air by burning coal for a KiloWatt electric produced is greater than if 10 KiloWatts came from a nuclear plant! Not to mention the CO2 problem with coal. The US's main electric energy source, still, thanks to the stupid Green Peace activists, is coal. etc.)
Cane is much more concentrated energy than the sunlight it came from, but has very low energy density compared to fossil fuels. Thus you can not ship it far. Hence it is not going to be grown in the rain forest land, 1000 miles for the point of use. This is why much more than half of the cane field of all of Brazil are in close proximity to the markets for alcohol - i.e. in the state of Sao Paulo. This is also why unlike the energy dense oil sent to a few big refineries, there are a couple of hundred plants converting cane from near-by fields (40 miles at most away) into Alcohol.
Even the big paper companies, like Aracruz (which I have ADRs of) do not cut down the amazon. The soil there is weak. They have plantations (mainly of Euclplsis - spelled wrong.) they grow like a crop. It is ready for cutting in about 5 years - has been genetic improved - faster growing only a few short branches.
Some of the world's dumbest "greens" destroyed their main research facility about a year ago ("The land should be growing food for the poor" was their claim/ POV. - There is lots of food for the population in the stores and tons are exported every hour to China. What the poor need is a job and now Aracruz will be hiring less until the 5 years of genetic development they destroyed can be restored.) In about 15 years, Aracruz has doubled the yield of fiber from each acre and the number of jobs to process it has also increased but not by factor or two, unless you count the construction jobs associated with new plants, new road, new ports** etc. - then must have quadrupled in those 15 years. (America has no monoply on really dumb people.)
The main reason the amazon is being cut (IMHO) is to supply the demand for wood from US and EU that is cheaper than from Canada and Scandinavia. The burning is often natural. (That tropical region has more lightning than any other part of the world by far. Some of the burning is caused by men who have been cutting where it is illegal. Brazil does try hard to keep this regulated, but the profits are so high, it is hard.
Stop buying rain forest wood, if you are concerned and willing to pay more for new house or furniture to put in it.
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* His house has tripple glass pane windows, and the two spaces between are filled with very heavy gas (Kripton?) as that moves more slowing for same average kinetic energy (temperature) and consequently the R value of even his windows is some huge number like 60, but I forget it exactly. House in the mountains of Colorado and it does get cold there in winter. I am not sure it has a furnace - the lights and human body heat probably keep it warm at 20 below zero. Fancy counter flow heat exchangers keep the air "mountain fresh" etc.
**Much of Aracruz's wood is made into short fiber pulp for export - Aracruz is world's most profitable and largest supplier of pulp for making paper. Their stock just hit new high today. My ADRs in them are up about 600% in 5 years, but that is because they are priced in dollars - the real gain is only about 300%.