Biofuels: 'Is the cure worse than the disease?'

The biofuels industry has been hit by another highly skeptical report, this time by the Organization for Economic Cooperation and Development (OECD).

The report titled "Is the cure worse than the disease?' says the promotion of biofuels is "creating unsustainable tensions that will disrupt markets without generating significant environmental benefits."

The report argues that much of the science behind biofuels is new, relatively unproven and may only reduce global greenhouse gas emissions by as little as 3%, at best.

It adds: "When acidification, fertilizer use, biodiversity loss and toxicity of agricultural pesticides are taken into account, the overall environmental impacts of ethanol and biodiesel can very easily exceed those of petrol and mineral diesel."

(The report, issued by the General Secretariat of the OECD, was written by the Round Table for Sustainable Development, and is not a statement of official OECD policy.)

The report does not come out totally against biofuels recognizing that they may serve a better role in some countries than others. It recognizes for example, that sugar cane for ethanol production in Brazil is much more efficient that using corn as in the United States. The report suggests that the industry would benefit from the elimination of tariffs (such as the 54cent-per-gallon tariff imposed by the United States on ethanol from Brazil). It also says governments should negotiate agreed standards for sustainable biofuels, in order to limit the environmental impact of biofuels.

But the overall tone of the report is highly negative. It concludes by calling on governments to cut their subsidies for the sector and instead encourage research into technologies that would avoid competing for land use with food production. "Governments should cease to create new mandates for biofuels and investigate ways to phase them out," it says.

In response to this report, an EU Commission spokesman said that "Biofuels do produce less CO2 than fossil fuels, there is no doubt about that. I am confident that our biofuel policy is definitely positive for the environment."

Click here for a link to the OECD report.

Click here for an interview with Richard Doornbosch the co-author of the report.
- David Adams

Comments

[Melissa M]

I agree that there are some major issues with biofuels -- specifically corn-based ethanol.

However, I would not throw out the baby with the bathwater -- if we can adopt strong, sustainable standards for production, I think biofuels will be a key step in our path toward energy independence.

Developing commercially viable cellulosic ethanol is key to the future of biofuels.