Eight Nations Warn EU Over Biofuel Barriers
BELGIUM: November 7, 2008
BRUSSELS - Eight developing nations warned the European Union on Thursday
they could file a World Trade Organisation complaint over what they see as
unfair barriers being raised against their biofuels.
The EU, which is currently fine-tuning its biofuel regulations, should steer
away from dictating where developing nations can grow biofuels and where
they can not, said a draft letter seen by Reuters.
The EU's final stance will be decided in coming weeks between member states
and the European Parliament, which has so far angered biofuel producers by
suggesting dozens of restrictions.
"They impose unjustifiably complex requirements," said the draft letter.
"Some of our countries don't exclude the possibility of defending their
rights in the World Trade Organisation, as a last resort."
"The letter is being signed today by the ambassadors of Argentina, Brazil,
Colombia, Malawi, Mozambique, Sierra Leone, Indonesia and Malaysia," said a
diplomat from one of the countries.
A spokesman for the European Commission, which originates EU laws, said it
was too early to comment while parliament and member states are still
thrashing out the final version.
HUGE MARKET
The Commission has proposed that 10 percent of all road transport fuel comes
from renewable sources by 2020, as it seeks to heed UN warnings that climate
change will bring more extreme weather and rising sea levels.
Much of that 10 percent would come from biofuels, creating a huge potential
market that is coveted by exporters such as Brazil and Indonesia, as well as
EU farming nations.
But environmentalists charge that biofuels made from grains and oilseeds
have pushed up food prices and forced subsistence farmers to expand
agricultural land by hacking into rainforests and draining wetlands -- known
as "land-use change".
The parliament has responded by altering the Commission's proposals to
include tough eco-standards for biofuels.
But developing nations contend this would prevent them from expanding
agriculture into wild areas -- as European nations have already done to
improve their own living standards.
Proposals to protect Savannah would rule out nearly all suitable land, while
measures to protect biodiversity could become an "open-ended list", the
letter said.
"Provisions relating to land-use change will impinge disproportionately on
developing countries, where there are stocks of undeveloped arable land that
can be used for biofuels production," it added.
The European Parliament has also proposed reducing the share of fuels from
food crops to 6 percent of EU fuel, down from the 10 percent proposed by the
Commission, and it has demanded a review in 2014.
"We believe that the establishment of a review process in 2014 is not
necessary and is likely to generate uncertainty for investors," said the
letter.
(Reporting by Pete Harrison; editing by Mark John)
Story by Pete Harrison
REUTERS NEWS SERVICE
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