A New Model for Industrial Production and Final Uses of Ethanol However, aware of the environmental damage caused by burning this situation is changing as a result of public pressure, and even through trade unions and other associations, sanctioning laws aimed to control or phase out burning. At the federal level, sugarcane burning is regulated by Decree n. 2 661/98, which concerns mainly with phasing out burning in areas where harvesting can be done mechanically. The São Paulo State Law n. 11 241/02 is more restrictive than federal laws, and aims to phase out burning both in manually mechanized harvested areas. The law aims at phasing out burning in non-mechanized and mechanized areas by 2021 and 2031, respectively. Within this context, the São Paulo State signed, in June 2007, a cooperation protocol between the State Government, the Department of Agriculture and Supply and the Union of Sugarcane Industry-UNICA. This was a major step toward for ending sugarcane burning, putting forward previously agreed deadlines set by state law (Figure 1). It should be noted that this protocol has been signed by mills located in the state, representing 90% of the sector in São Paulo, and over 24 sugarcane supplier's cooperatives (UNICA, 2009). It is also worth noting that the São Paulo State is leader in this sector e.g. in 2007 produced approximately 60% of sugarcane planted in Brazil, compared to the second larger producer, Paraná State, with about 8% (IBGE, 2009). Other states, such as Goiás and Mato Grosso, there are also similar initiatives to phase out sugarcane burning (BNDES and CGEE, 2008). Therefore, we can say that in a short period of time, there will be availability large amounts of sugarcane trash; there are two main options available, not necessarily exclusive: i) leave sugarcane trash in the field or ii) recover it as a raw material for of fuels or chemicals. Sugarcane trash in the field Regarding the effects of trash 1 left on the field, CALDEIRA (2002) pointed out the positive aspects to the soil, in terms of erosion control, moisture retention, improved biological, chemical 1 Trash is material left in the field after harvesting; this is particularly the case with mechanical harvesting. Trash, consists of green and dry leaves, tops and fractions of stems, roots and soil particles attached to them (RIPOLI, 1991). Note: Mechanized areas have slope less of than 12%.