Government orders review of indirect impacts of biofuel production

Thu 21 February 2008 View all news

The Government has ordered a review of the wider environmental and economic impacts of growing biofuels. Their production and use is set to increase rapidly in the UK as a result of the introduction of the Renewable Transport Fuel Obligation (RTFO). The review is a response to the growing number of studies which have questioned the environmental benefits of biofuels.

The Department for Transport says that the results of the study, which will be conducted by the new Renewable Fuels Agency, will help inform the development of UK and EU biofuel policy, as well as influence EU biofuel targets after 2010.

Commenting on the announcement, the Transport Secretary Ruth Kelly said: "The UK Government takes this issue very seriously. We are not prepared to go beyond current UK target levels for biofuels until we are satisfied it can be done sustainably. The Review I am announcing today will ensure that the full economic and environmental impacts of biofuel production are taken into account in the formation of UK policy beyond 2010."

However, the DfT confirmed that the Government plans to press ahead with the RTFO which will ensure that oil suppliers include biofuels in transport fuels marketed in the UK - this will mean 2.5% of transport fuel from April this year, rising to 5% by 2010.

Ruth Kelly continued: "Biofuels have the potential to help reduce the impact of transport on the environment, provided they are sustainable. That is why we are introducing the new Renewable Transport Fuel Obligation in April. The RTFO will allow us to gather a wealth of data on the impacts of biofuels, which we will take into account in determining future levels of support for biofuels.

"However, future biofuel targets must also take into account the latest scientific evidence about the environmental effects of biofuel production. There has been much recent debate around the risks associated with overly rapid expansion of biofuel production, with evidence now emerging on the indirect, or "displacement" impacts, of growing demand for agricultural production around the world."

Ms Kelly's announcement does suggest, however, that the Government is taking a more cautious approach on biofuels targets. In a major environmental speech late last year (see associated LowCVP news link), the Prime Minister said that his Government was committed to the European target for biofuels - 10% of road transport fuels - while the UK's stated commitment under the RTFO is for 5% by 2010.

Responding to the announcement, John Sauven, the executive director of Greenpeace UK, said (quoted in The Guardian): "The scientific evidence is mounting: biofuels are often more damaging to the climate than the fossil fuels they are designed to replace. The Government needs to introduce a moratorium on the UK's biofuel targets until this review has been published."

Dr Sue Armstrong Brown, the head of countryside conservation at the RSPB, said: "This review is a welcome small step forward, but one that sidesteps the inadequacy of government policy on biofuels. The renewable fuel obligation could still mean forecourts selling biofuels, whose production comes at the expense of wildlife. It could still leave motorists buying biofuel that has contributed to climate change because emissions from biofuel production could be higher."

The Renewable Fuels Agency, which will carry out the review for the Government, said it welcomes the announcement. Ed Gallagher, the RFA's chairman, said that the agency would consult widely with stakeholders, draw upon the best evidence and make the results public.

The RFA's website says that the Government has made it clear that it wants the Agency to report back as soon as possible in order that the Government has the best opportunity of influencing EU negotiations on future biofuels targets.


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