Biofuels will send millions into poverty

Speaking at the AIC’s annual conference last week, chief executive of the Renewable Fuels Agency Nick Goodall warned that biofuels will have a major impact on global food prices, putting a further strain on people in developing countries.

He told delegates up to 10.7 million people in India alone would be pushed over the poverty line as a result of the projected price increases.

He said: “The potential problem is very clear, if you take crops that would normally be used for food and use them for fuel then unless we grow more crops, then there will be a shortage.

“They will impact on global food prices. Its greatest effect will be in poor countries where populations spend more as a proportion of their income on food than in developed countries.

“Poor people in these countries do not have a democratic say on the introduction of biofuel mandates and so some people see this as a moral issue.”

He said he was confident that the biofuel boom would continue, expecting to see 'seven to eight per cent of biofuel in every petrol tank for the next 20 years'.

Despite the stark warning, he said biofuels still had a role to play in combating climate change, but this should only be done in areas where it will not impact on food prices.

He said: “Biofuel production needs to be carried out on land that would not otherwise be used to produce food. That way you can gain the benefits biofuels have to offer without impacting on food prices.

“Biofuels can and do offer substantial carbon savings and can be part of a low carbon future. But we believe it is possible to have a totally sustainable biofuel industry but it will only happen with the correct framework of legislation.”

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