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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