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Food costs stoke debate about EU biofuels targets

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Published 16 August 2012, updated 22 August 2012

Drought-stricken crops and record-high grain prices have strengthened critics of the European Union biofuel industry, adding fears of a food crisis to their claims that it does not ultimately reduce carbon dioxide emissions.

The renewed anxiety adds to pressure on the European Commission to forge a deal this year to help ensure that EU biofuels do not clash with food production or the environment.

Such an agreement would remove some of the uncertainty that has hung over the multi-billion-euro bioenergy industry during years of debate.

The UN Food and Agriculture Organization last week called for a suspension of US ethanol quotas as a response to the impact of the worst American drought in more than half a century on corn supplies and prices.

Ahead of a US election, immediate change is unlikely. But the debate highlights concerns that EU goals also stoke commodity volatility because they exaggerate inelasticity of demand.

"The US situation should be a warning for the EU that our inflexible biofuel mandate can lead to food price volatilities, especially as we are currently converting 65% of our vegetable oils into biodiesel," said Nusa Urbancic, programme manager at campaign group Transport and Environment.

Scepticism about carbon targets

In the EU, more so than in the United States, biofuels are part of the strategy to lower carbon emissions. Urbancic and many other campaigners doubt it achieves that.

"Science has also shown that biodiesel can be worse for the climate than conventional oil, once indirect impacts on forests and peatlands are included," she said.

Action plans drawn up by EU member states predict that bioenergy, including biomass for power generation and biofuel for transport, will provide more than 50% of the EU share of renewable energy as part of 2020 climate goals.

The European Commission has said it opposes anything that inflates food prices. What it hasn't worked out is how to ensure that its own biofuel policy does not have that distorting effect.

EU sources have said the Commission will attempt to get agreement before the end of the year on how to measure ILUC.

The aim is to clarify the impact of biofuel policies on displacing food crops or driving unwelcome environmental change.

For now, Energy Commissioner Günther Oettinger has opposed raising a target of deriving 10% of transport fuel from biofuels, as part of an overall goal to get 20% of energy from renewables by 2020.

Next steps: 
  • 2012: European Commission scheduled to announce new indirect land use sustainability criteria for biofuels.
  • 2020: Deadline for EU target of 10% of transport fuels to be met by renewable energy
EurActiv.com with Reuters

COMMENTS

  • The folly of the Mad Dash scenatio for Renwable Fuels (Biofuels) was brought about by the USA and Brazil cartels in tryingto collar the market. The explanation all along was faulted and we told you so.

    It is for this reason that we have been saying all along there is a need to do what we have said since 2006 and that is concentrate on making Renewable Fuels (Biofuels) from Non-Food Origins such as Wastes and Discarded Biomass such as is being developed in Hardenberg (Holland) and Malta and Yorkshire and Israel as just a few examples. These programmes can make the biofuel Ethanol at a cost cheaper than those made from foodstuffs and they are sustainable production methods that are continuous and do not need single sources of materials.

    Even you in the EU and the other players who have been developing Biofuels projects using non-food sources of Biomass have so roundly stated this that now you must address this. There is more than enough basic discarded biomass around that if you accepted the facts that making biofuels from such materials was to be the formal way forward then you might also appreciate the fact that making such biofueld from these sources of materials need not be expensive and that they can compete and produce at costs below the manufacturing costs in Brazil. And if as the EU you were to think about this more widely this would in fact save the Public and the Tax Payers (the funders to the EU) a considerable amount of money. As an example a waste to energy facility as proposed for say treating 400,000 tonne pa of waste can be built for less than a third of the equivalent in doing the same through incineration/gasification as we read about in the press across the EU. And with Reurns on Investment reaching 60% there is no doubt that this is the way forward.

    By :
    Victoria
    - Posted on :
    16/08/2012
  • Unfortunately the Gloabl 2000 companies that comntrolled $36 trillion or 51% of the world's total economic turnover in 2011, only see the bottom-line not sustainability or the good for humanity. Bio-fuels are an expression of this as there are no carbon savings at all with this technology and where it depletes our foodstocks. Indeed these people do not think further than the end of their noses and their ever swelling bank deposit accounts. Until they realise that they are destroying the world in the name of pure profit and shareholder value, our species travels towards its ultimate conclusion. When that happens and there are 10 billion humans or more living on planet earth and our natural resources have deminished to a level where sustainabiliy is just a mere word, then they may look in the mirror at themselves and ask, why were we so foolish? But until that day comes, they will just simply continue to develop our world on the altar of the madhouse.

    Dr David Hill
    World Innovation Foundation

    By :
    Dr David Hill - World Innovation Foundation
    - Posted on :
    16/08/2012
  • The Climate CHange scam is the 21st Century Holocaust, killing millions in Africa by artificially raising food prices with this biofuel scam!

    Then there's the nonsense about not allowing them to industrialise, which is the dream of Africa, take it from the first country that did: you won't regret it.

    Then there are the EU subsidies to EU farmers, distorting free market economics i.e. stopping the Africans from trading their way to prosperity.

    The IV Reich and it's many tools of destruction must be abolished.

    Vote UKIP in 2014!

    By :
    Timothy
    - Posted on :
    17/08/2012
  • Well Mr D Hill, your comments relate to biofuels from food crops and not from non-food sources and discards. I suggest you look again at the mathematics for these.

    Having done that then re-appraise what you think is the best way forwards for Coal Oil and Gas are all Fossil Fuels.

    By :
    Karel
    - Posted on :
    17/08/2012
  • Vested-interests always corrupt the mind. All common-sense goes out of the window and eventually we all pay the very, very big price – conflict on a global scale.

    It appears that you do not understand the human tragedy that lies on the horizon for humankind, apparently you stick your head in the sand and that problem is for another generation. I can tell you and others can, that Bio-fuel production will hardly dent the supply side for carbon based energy requirement and if you undertook your research into this you would find the same - the reason, we have not enough crop land available. How is it that people like yourself conjure up information that will never materialise. You also do not comprehend apparently that the earth surface area comprises of 71% water and 29% land (UNFAO). But where world's total arable land only accounts for 10.57% of this according to the CIA facts book, due to mountain ranges and inhospitable areas that crops cannot be grown.

    Since 1961 until 2002 for instance, arable land declined by 53.76% (UNFAO) per person as there were more people and desertification and erosion had taken a land mass the size of Iceland away from humanity every year. This is still the case and the process is accelerating. Therefore our available area to grow crops to feed us is diminishing infinitum and is not being replenished. Indeed it takes between 800 to 1000 years for a 2.5 cm thick layer of fertile soil to be formed in nature according to international research.

    You ask what is the answers, the answer lies in a huge equivalent ‘marshal plan’ to harness the world’s creative thinking to solve our future problems.
    In this respect our present development mechanism is ruining the planet and its ability to support the human and carbon-based life. If we continue like we are as MIT and the Royal Society have cited recently in their respective release of their reports that human life will reach a catastrophic point and not that far away. They say around 2030. So please get real and read what eminent research is stating so that you do not get sucked in by the unreal world.

    There is no doubt that we have to change our ways of development. Primary energy sources in the future have to come from the power of the oceans and seas and where this release of energy is 24/7. Unfortunately governments around the world have been suckered in by the power wind lobby that will contribute little when carbon offsets are calculated and massive maintenance costs to keep them going infinitum.
    Governments have really to start changing their mindsets that are on a hiding to literally nowhere for humankind and in the medium to long term (25 to 100 years).

    Once we and governments get their head around initially we need to invest in unprecedented research

    If you have studied the depletion of the world’s natural resources you will see that uranium for nuclear energy transformation has only a predicted life to extinction of around 40 years at the current rates of extraction. Therefore nuclear in time will run out as an option and therefore why the oceans, seas and tides hold the energy solution for humanity. But governments persist in not doing very little or on the scale that is required here in R&D because of them being brainwashed by the vested-interest global wind energy lobby. Once we have secured sufficient ‘free’ primary energy this can be used to drive the next generation of cars (electric) etc and a cleaner world can be created for all.

    I just wish that the huge vested interests of global 2000 companies looked further than today and what they are doing, and to tomorrow and the sustainability for the next generations to come. Unfortunately they are not and that is why we shall in the not-too-distant future see major situations arise that eventually end in conflict. Again in this respect you will not be aware what the national Intelligence Council (NIC) based in Washington (cited as the world’s most eminent intelligence institution) stated in late 2009 for the first time ever that in the medium term (next 50 years) strategic nuclear weapons would most probably used to protect natural resources and borders.

    Dr David Hill
    World Innovation Foundation

    By :
    Dr David Hill - World Innovation Foundation
    - Posted on :
    17/08/2012
  • Timothy, I'd go further.

    If the EU is not totally transformed into a pro-active and innovative institution with its feet firmly on the ground over the next ten years, it will become the walking dead of Europe. The problem with all these mandarins and EU elitist structured people is that they never see the woods for the trees as they are totally blinkered and brainwashed by our vested-interest of big business. Indeed the EU system and management structure is geared towards the 'steady-state' and where change is an anathema - don't rock the boat at all costs. These people do not listen to outsiders either. In this respect I wrote to Commissioner Kroes around a month ago and sent her a follow up last week. No reply or acknowledgement whatsoever.

    I copy and past below my request/hand of help, which in the overall context outlines what I say above and the complacency of our EU leaders where they listen to NO outsiders, only themselves and their so-called wise men and women who are paid extortionate financial rewards for literally no results and a declining Europe for its people. I know one who is paid in this respect €3,000 an hour.

    Communiqué to Commissioner Kroes, EU Commissioner for Competition,

    Commissioner Kroes,

    I caught your short interview on BBC news today and where you talked about cooperative EU. Our Swiss Foundation has undertaken a pan-global analysis over the last 20 years to how we can create the right environment for sustainable development. This involves a great deal to do with communication, collaboration and cooperation and the creation of the innovative infrastructure that the world needs and of course the EU.

    Therefore if you have an open mind I would welcome a meeting with you to discuss our thoughts on the matter and the input of our global thinkers. In this respect we have over 3,500 eminent consulting fellows from across the 5 continents.

    But a bit of warning, do not be put off by a derogatory article by Nature Magazine in January 2008 (the only one of its kind). The reasons behind this attack on our Foundation was to do with addressing global pandemics (avian killer flu etc) at its source (the pro-active mindset and that prevention is better than cure) and not the reactive strategy of drugs and where these will come too late based upon the 2009 Swine Flu pandemic. The Nature reporter stopped this strategy continuing which is one of the greatest mistakes that ever Nature magazine ever undertook and it will come back to haunt them in an extremely big way in the future (many deaths will emerge). Therefore you have to keep an open mind to respectfully move forward (and if that is what you really want to see happen). For your information in this respect my mobile is 0044 (0)xxxxxxxxxxxx and landline 0044(0)xxxxxxxxx/xxxxxx.

    As you are a Dutch person, in the Netherlands I have had with others a private evening social dinner and discussions with Prince Friso that including Corinne Heijn who was our host. It is sincerely hoped that His Royal Highness eventually emerges from his coma.

    I hope that we can meet sometime at the commission.

    I see that you were awarded a higher doctorate from the University of Hull and where our Foundation is based in the UK in Huddersfield, not that far away from the Hull.

    All the very best,

    Dr David Hill
    Chief Executive
    World Innovation Foundation

    PS respectfully visit for a fuller understanding of the Nature Magazine article and the underlining reasons why it was produced on the very same day the alternative strategy to stop killer pandemics at source in Thailand. In this respect please read my comments - http://foolscrow.wordpress.com/2010/07/27/return-to-nuremberg-big-pharma-must-answer-for-crimes-against-humanity/

    By :
    Dr David Hill - World Innovation Foundation
    - Posted on :
    17/08/2012
Background: 

Use of biodiesel - dominant in Europe, while ethanol prevails in the United States - is expected to double by 2020 to 19.95 million tonnes of oil equivalent (mtoe) from around 10 mtoe in 2010.

The EU already has enough refining capacity at more than 22 million tonnes to cope with the projected doubling in biodiesel demand, according to Rabobank, a Dutch financial services company.

But it faces daunting challenges in coming up with the investment and technology needed to move to feedstock, such as weeds, grass and waste stems, leaves and husks, that would take the pressure off grain supplies for food.

It also needs to find inputs that would no longer result in the clearing of environmentally-sensitive forests and wetlands to plant fuel crops, an issue known as indirect land use change (ILUC).

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