Skip to main content

Food price increases are resulting from biofuel targets?

Critics of Europe’s push towards biofuels are pointing out that the strategy is boosting the cost of foodstuffs around the world. The combination of drought and high grain prices are fuelling a growing clamour within Europe that is criticising the policy on boosting biofuel use.
August 31, 2012 Read time: 2 mins
Critics of Europe’s push towards biofuels are pointing out that the strategy is boosting the cost of foodstuffs around the world. The combination of drought and high grain prices are fuelling a growing clamour within Europe that is criticising the policy on boosting biofuel use. This comes on top of strong evidence that biofuel use does not reduce carbon dioxide emissions and may in fact be counter-productive. The claims are nothing new. A 3263 World Health Organisation (WHO) report strongly criticised the move towards biofuels, pointing out that the policies were ill-thought out and poorly planned, resulting in spiralling food prices particularly in developing nations where low income families suffer the most. The 2465 European Commission may well be forced to ensure that biofuels being used in the EU do not impact on food production or result in negative environmental changes.

The 6492 UN Food and Agriculture Organisation has asked for a suspension of US ethanol quotas. This follows on from the worst drought to hit the US agricultural sector in more than 50 years and its impact on corn supplies and prices. Until the US election has been concluded, a change in US policy looks is unlikely. But there are strong concerns that EU biofuel targets impact on the commodities markets by increasing pressure on supply at a time when producers are less able to respond.

The EU’s biofuel target is inflexible and this can boost food prices, especially 65% of our vegetable oils are being converted into biodiesel, according to some environmental groups. In the EU, biofuels form part of the strategy to lower carbon emissions. But research shows biodiesel can actually be worse for the climate than fossil fuels.

EU member states are planning that bioenergy, including biomass for power generation and biofuel for transport, will provide more than 50% of the EU share of renewable energy as part of 2020 climate goals. But the EC has also said it opposes any policy that inflates food prices. At this stage, the EC has not found a way to ensure that its policy of using biofuels impacts on food prices though. But internally the EC’s own Energy Commissioner is opposing a target of deriving 10% of transport fuel from biofuels, as part of an overall goal to get 20% of energy from renewable sources by 2020.

For more information on companies in this article

Related Content

  • CECE-CEMA hands 10-point action manifesto to Euro leaders
    October 17, 2013
    The presidents of the CECE and CEMA have handed the European Parliament a 10-point manifesto for securing strong industrial production across Europe. Doing this, the European construction equipment and agricultural machinery industries underlined that they are committed to playing an active role in reaching the target of the European Commission to raise the share of industry in Europe from 16% GDP to at least 20% by 2020. Both industries maintain important production facilities and R&D sites in Europe.
  • Driving advances in engines and drivelines
    February 27, 2019
    Technology advances for engine and driveline systems continue - Mike Woof writes With the Stage V emissions requirements being introduced in Europe, a number of engine manufacturers have already announced their plans. Leading engine makers such as Cummins, Deutz, John Deere, Perkins and Volvo Penta have all released information regarding the engines that they will be offering. The new standard introduces the particulate particle count (PN) and applies to all diesel engines above 19kW for off-road applic
  • Attitude is key to sustainability, says Volvo CE’s Thomas Bitter
    June 27, 2018
    Whether you are in the global Volvo Ocean Race or working on-site locally, sustainability is about attitude as much as technology. David Arminas reports. Technology, sustainability and safety. We ignore these often related themes at our peril. This was the key point made by Volvo Group chief executive Martin Lundstedt during his brief opening presentation at the start of the Building Tomorrow Conference in Spain last October. The conference took place within the harbour of Alicante that was bustling wit
  • A clean fuel future
    November 13, 2024
    Researchers at the University of Sheffield are exploring new exhaust aftertreatment systems for heavy-duty engines capable of running on clean, zero-carbon fuels such as ammonia.