Brazil is the world largest producer of sugarcane ethanol, an alternative to gasoline. Large players, including international oil companies, are aware of the potential of Brazilian ethanol and are investing in the production and expansion of sugarcane plantations in the country. The growing ethanol market imposes some conservation challenges on Brazil to meet the increasing demand. The market points out to an expansion of sugarcane crops, but this can be extremely harmful to the remaining biodiversity of the Brazilian Atlantic Forest. The impact of such expansion will be more severe in the states of Alagoas, Pernambuco, Paraíba and Rio Grande do Norte, the second largest sugar-ethanol production region, and one of the most globally threatened areas of tropical forest (only 12% left, ∼ 1% legally protected). There, most forest fragments are smaller than 100 ha and several endemic species are on the verge of extinction. Here we advocate that instead of expanding plantations, increasing crop productivity should be the more logical and environment-friendly solution for that region. Further, we indicate that the current challenge is to increase the number of sugar and ethanol companies following best management practices and to turn these programs into a real opportunity to restore the biodiversity and environmental services of an ecosystems in eminent collapse. We urge that companies should move one step further and, at least, guarantee the protection of the habitats that go beyond the protection area imposed by the current environmental law.