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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