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Food and Agriculture Organization
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Two years ago, there were high expectations surrounding liquid biofuels as a resource that could potentially mitigate global climate change, contribute to energy security and support agricultural producers around the world. Since then, there has been a marked change in perceptions of biofuels. Recent analysis has raised serious questions regarding the full environmental impacts of producing biofuels from an already stressed agricultural resource base. The costs of policies aimed at promoting liquid biofuels are beginning to attract scrutiny. Food prices have risen rapidly, giving rise to major concerns over the food security of the world’s most vulnerable people. However, biofuels are only one of many factors that have driven the recent rise in commodity prices. Also, biofuels have other implications beyond their effect on commodity prices. This report surveys the current state of the debate on biofuels and explores these implications. It examines the policies being implemented in support of biofuels and the policies that would be needed to address their implications for the environment, food security and the poor.