July 9, 2008

The Renewable Fuels Agency's (RFA), Gallagher review into the indirect effects of biofuels was released on Monday (7 July). The review, led by RFA Chair Professor Ed Gallagher, has taken a detailed examination into the "indirect effects" of biofuels. It has looked specifically at whether biofuels cause greenhouse gas emissions and harm to the areas biodiversity by enforcing land-use change.  From this information it has evaluated the effect of biofuel on food prices.

The key conclusions of the Gallagher review are as follows:

1. The introduction of biofuels should be slowed until effective controls are in place to prevent land use change and higher food prices.

2. There is a future for a sustainable biofuels industry but creating the policy right framework is challenging and will take time.

3. Current policies, if left unchecked, will reduce biodiversity and may even cause greenhouse gas emissions rather than savings. More caution and discrimination are needed in the feedstock used to produce biofuels.

4. Increasing demand for biofuels contributes to rising prices for some food commodities, notably oil seeds, that has a detrimental effect on the poor.

5. Biofuels production must target idle and marginal land, and the use of wastes and residues. This will avoid indirect land use change and reduce competition with food.

6. Specific incentives are needed to encourage advanced technologies that utilise feedstock grown on idle and marginal land.

Professor Gallagher commented, 'Our review makes clear that the risks of negative impacts from biofuels are real and significant, but it also lays out a path for a truly sustainable biofuels industry in the future. The RFA will move on from this review to build a new consensus on the use of biofuels, and lead the UK industry into a sustainable future.'

The reviews recommendations could scarcely be more succinct.  The current system is having a profound effect on food prices and biodiversity.  It recommends that the proposed rise in the amount of biofuels in current petrol and diesel, from 2.5% to 5% should be put back from it’s current date of 2010 until 2013/14, and then only if biofuels are shown to be demonstrably sustainable, including avoiding indirect land-use change.

In light of the findings Transport Secretary Ruth Kelly has slowed their introduction from 1.25% per year for the next two years, to 0.5%, so by 2010, 3.5% of our fuel will be biofuel.  She said: "I believe it is right to adopt a more cautious approach until the evidence is clearer about the wider environmental and social effects of biofuels. We also need to allow time for more sustainable biofuel technologies to emerge."

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