"Biofuels are usually discussed as though they are one product but the term covers a range of products whose effects differ. Biofuels can be viewed positively, as far as limiting greenhouse gas emissions is concerned, but negatively too, as biofuel crops compete for resources such as land and water with those intended for food, and can cause market distortions.
Biofuel production can be seen as a moral issue, as energy policies and the welfare of the poor become linked. Biofuel production can do more harm to the poor and landless than the benefits that result from increasing crop yields and global aid.
Biofuels drive food prices up which, it was argued, would be somewhat acceptable if they were an effective way of reducing emissions. However, a ton of CO2 saved by biofuels in Europe costs around one thousand euros.
The expansion of biofuel production can be positive for farmers and landowners in countries at all levels of development. But their impacts on price volatility and their effectiveness as a green source of energy need to be examined. The fact that they constitute an artificially created market – by subsidies in the US and mandates in the EU – is a further cause for concern. It was argued that biofuel mandates, which are set by governments and regional bodies and stipulate the levels of biofuel use required, need to be made more flexible. Biofuel mandates should be seen in the broader context of overall policies on sustainable energy and reduction in greenhouse gases."
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