| Current biofuel subsidies should be phased out, says 
    IEA 
 PARIS, FRAMCE.
 Biofuels “will have to play a significant role if the world is to make 
    meaningful reductions” in carbon emissions, says the International Energy 
    Agency.
 Biofuels are one factor in the recent shortage in grain stocks and surge in 
    food prices, but it is “very important to differentiate between types,” IEA 
    explains in a policy position. Most biofuels can displace imported oil and 
    diversify energy resources, but some current first generation biofuels “may 
    compete with food, fibre and feed production.”
 
 Currently, less than 2% of global agricultural cropland is used to produce 
    ethanol from grains and biodiesel from oil seeds, but they can be produced 
    in a more sustainable way and, if properly managed, can offer valuable 
    benefits to both developed and developing countries, it explains. “The use 
    of sustainable biofuels can increase energy security, foster economic 
    development, especially in rural areas, and reduce GHG emissions,” noting 
    that ethanol from sugar cane has “excellent characteristics in terms of 
    economics, CO2 reductions and low land use requirements.”
 
 Second generation biofuels from ligno-cellulosic feedstocks “hold 
    considerable promise for eventually providing more sustainable types of 
    biofuels,” although IEA adds that straw, woody biomass residues and 
    vegetative grasses remain relatively costly options. Several conversion 
    facilities to convert ligno-cellulosic biomass to ethanol or to synthetic 
    diesel will be available within three years, and IEA calls on governments to 
    increase their support for RD&D for these second generation biofuels at this 
    critical juncture.
 
 Current incentive support schemes for biofuel technologies should be phased 
    out as they reach maturity, and governments should explore a rapid 
    transition to policies that promote advanced biofuels, the IEA statement 
    explains. Biofuels play an increasingly important role in meeting growing 
    demand for transport fuel, and represented 49% of the growth in non-OPEC oil 
    supply last year which is expected to rise to 55% this year.
 
 “Biofuels will have to play a significant role if the world is to make 
    meaningful reductions in carbon dioxide emissions,” IEA notes. In an 
    ambitious scenario, advanced biofuels could supply 700 million tonnes of oil 
    equivalent by 2050, representing more than one-quarter of total transport 
    fuel demand.
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