The Great Biofuel Debate
“It’s not easy being green”. So sang Kermit the Frog a couple of decades ago and it seems today, that not a truer word was spoken.
As consumers we have been encouraged to “do our bit” for the environment by using biofuel blends yet recent research suggests that widespread biofuel use has forced world food prices up by 75%, pushing 100 million people worldwide below the poverty line, according to the World Bank.
The use of biofuels seemed like a good idea at the time. After all, we can help to solve the two biggest challenges of our time – climate change and dwindling fossil fuel stores. Now, however, the production of biofuels has been blamed for a 30% spike in food prices.
Experts claim that the production of biofuels has distorted food markets in 3 ways:
1. It has diverted grain away from food for fuel, with over a third of US corn now used to produce ethanol.
2. Farmers have been encouraged to set land aside for biofuel production.
3. Biofuel production has sparked speculation in grains, driving prices up.
It has been predicted that by 2030, rising world populations would require a 50% increase in food production. The problem of growing enough crops to produce renewable energy as well as meeting the increasing demand for food has now become apparent.
However, supporters on the other side of the fence claim that the use of biofuels will reduce greenhouse gas emissions, protect fossil fuels and increase rural development particularly in disadvantaged countries.
They blame the growing middle classes in China and India for driving the increased demand for food. They are quick to point out that rice has seen the biggest increase in price worldwide, but it is not used for biofuels. Sugar, on the other hand, is a biofuels crop; the price of which has actually decreased.
As Australians currently battling against both rising fuel prices and rising food prices, the chicken and egg question must be asked – which came first. Until we have some sort of conclusive scientific evidence and governments we can trust, all we can do is be guided by our conscience when we next approach a petrol bowser.