The first-generation biofuels, primarily ethanol
made from maize or sugar cane, or biodiesel made from vegetable oil were
motivated by the novel goal of weaning the world off fossil fuels and reducing
or mitigating greenhouse gas emissions.
In the United States, Congress adopted
extensive mandates and subsidies for corn-based ethanol in the late 1970s to
get a biofuels industry off the ground. The Renewable Energy Directive (RED) adopted
by the EU in 2009 set an objective, which demands 10% biofuels in road
transport by 2020.
The arguments that created the economic,
environmental and energy independence appeal of first-generation biofuels are
diminishing rapidly and furiously.
US federal government's corn subsidies, which
have encouraged farmers to produce maize for ethanol, began in the 1970s. In
2010, 40% of maize
produced in the US was used for making ethanol.
Moreover, even if America's entire corn crop were to be devoted to ethanol
production, it would still only supply 4% of the country's oil consumption. There
are numerous causes to the recent spikes in food prices in the US, but biofuels
remain a significant piece of the puzzle.
A 2008 study
published in the Proceedings of the National Academy of Sciences journal showed
that increasing maize production to meet renewable fuels target would add to
nitrogen pollution in the Gulf of Mexico by 10 to 34%. The study also revealed
that a modern biofuel plant uses about 3 gallons of water to produce 1 gallon
of ethanol.
A study by Food First Information and Action Network
International (FIAN International) estimates that over 60% of all large-scale
land grabbing in more than 20 African countries, mainly by British and EU companies
is intended for producing biofuels. Various instruments, including in the areas
of trade, development cooperation and diplomacy, support the biofuel policy of
the EU.
EU’s renewable energy policy encourages
farmers in Indonesia to clear forests in order to grow crops for use as fuel in
Europe. According to the Institute for European Environmental Policy (IEEP),
carbon released from deforestation linked to biofuels could exceed carbon
savings by 60% in 2018. A report
published in the Guardian in 2011 estimated that half of the 3.2 million
hectares of biofuel land in Africa is linked to 11 UK companies.
Biofuels came under sharp scrutiny when the
IEEP showed that EU’s biofuels policy alone could push up oilseed prices up to
33%, maize up to 22%, sugar up t 21% and wheat by up to 10% by 2020. Claims
that commercial production of Jatropha
curcas – non-edible oil whose oil-rich seeds – avoids competition with
food because it grows on marginal and arid land have been challenged.
Profitable production of Jatropha needs water, fertilizer and pesticides, hence
competing for the same resources needed to produce food.
The argument that ambitious biofuel targets are
fueling high food prices and hunger is gaining credence. Biofuel production is
now viewed as taking food from the plates of the poor and putting it into the
fuel tanks of the wealthy. Consequently, many experts are now calling for
countries, especially the EU, Britain and the US to scale back incentives and
investments in green fuel development.
In June 2011, members of the United States Senate
voted to abolish a 45-cents-a-gallon subsidy for ethanol from maize that is
used for blending with petrol. There are compelling reasons why. A gallon of
pure ethanol contains about two-thirds the energy of a litre of petrol.
Two weeks ago, the European Commission
released a proposal to limit the use of food-based feedstock and stimulate the
development of alternative biofuels from non-food feedstock. The proposal provides
incentives for feedstocks that do not create additional demand for land,
including algae, straw and waste. What
is more consequential is that the EU proposal sets a limit of 5% on the use of
crop-based biofuels.
However, representatives of the
European biofuel industry are speaking out against the proposal, arguing that
it will hurt the region’s biofuel industry in the midst of the European
economic crisis. This is especially callous, in my view, if you consider that that
global food prices have jumped 6% poor
people in developing countries spend 50-80% of their income on food.
The failure of the first-generation
biofuels has stimulated interest in developing alternative or second-generation
biofuels from non-food feedstocks. The success of the second-generation
biofuels must evaluated on fundamental environmental sustainability and economic
policy goals:
1.
Second-generation biofuels must not
compete for land and water used for food and fibre production;
2. Second-generation biofuels must
achieve technology and market competiveness without government subsidies to
compete with petroleum;
3. Second-generation biofuels must deliver
greenhouse gas emission reductions or mitigations once direct and
indirect land use change is accounted for.