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Biofuels

Biofuels – transport fuels derived from plant materials – are entering the market, driven by factors such as rising oil prices and the need for increased energy security. However, many of the biofuels that are currently being supplied have been criticised for their adverse impacts on the environment, food security, and land use. The challenge is to support biofuel development, including the development of new cellulosic technologies, with responsible policies and economic instruments to help ensure that biofuel commercialization is sustainable. Responsible commercialization of biofuels represents an opportunity to enhance sustainable economic prospects in Africa, Latin America and impoverished Asia.

Biofuels offer the prospect of increased market competition and oil price moderation. A healthy supply of alternative energy sources will help to combat gasoline price spikes and reduce dependency on fossil fuels, especially in the transport sector. Using transportation fuels more efficiently is also an integral part of a sustainable transport strategy.

Biofuel development and use is a complex issue because there are many biofuel options which are available. Biofuels, such as ethanol and biodiesel, are currently produced from the products of conventional food crops such as the starch, sugar and oil feedstocks from crops that include wheat, maize, sugar cane, palm oil and oilseed rape. Any major switch to biofuels from such crops would create a direct competition with their use for food and animal feed, and in some parts of the world we are already seeing the economic consequences of such competition.