Blog
Bio-fuel curse and cure
15th April 2008
Today marks the introduction of the new EU Renewable Transport Fuel Obligation and there has been a huge amount of coverage about the economic and environmental impact of the switch towards biofuel production.
From today, car fuel suppliers must ensure that at least 2.5% of the product they sell is biofuel - this obligation rises to 3.75% by 2009 and 5% by 2010. For environmental campaigners such as Friends of the Earth and the RSPB , this is creating an environmental disaster which is threatening bio-diversity and contributing to rising food prices as grain production is switched towards biofuel production. The National Farmers Union has countered that, at present, less than 3 per cent of food has been turned to bio-fuels - but this figure must surely rise as the renewable transport fuel obligations become steeper in the years ahead.
Fertile land is in composite demand - it has many uses - and land taken away from the food chain must have an impact on our ability to produce sufficient food at affordable prices. 2nd generation biofuels have a greater potential to be grown on land not suitable for food production and it is to be hoped that we can move towards 2nd generation biofuel sources quicker than is forecast.
What matters more to me in the longer term is in reducing our dependence on cars rather than reducing the environmental impact of the fuels we use.
Here is a selection of the coverage of the new EU Renewable Transport Fuel Obligation
Independent:
Biofuel - the burning question:
The Guardian:
Biofuels - the big picture
BBC news video:
Bio-fuels - a hidden cost?
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.