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Renewable Fuels Agency welcomes DfT terms of reference for review

14th March 2008

The Renewable Fuels Agency yesterday welcomed the terms of reference from the Department of Transport for a review on the indirect impacts of biofuels, announced last month by Transport Secretary Ruth Kelly.

The study will include an assessment of the available evidence on the indirect effects of biofuels on land use change, both within the EU and internationally, and the consequences for greenhouse gas savings. It will also examine the effects of an increasing market for fuel crops on international food prices and food security. The study will be led by the RFA Chairman, Professor Ed Gallagher, and will consult scientists and experts from around the world.

Yesterday Mariann Fischer Boel, European Commissioner for Agriculture and Rural Development gave a speech at the 2008 World Biofuels Markets Congress in Brussels, entitled ‘Biofuels: not a magic wand, but a valuable policy tool. She said of the increasing controversy over first-generation biofuels’ economic and environmental impacts:

“I know that various objections have been raised, and the Commission takes them seriously. But we believe we can answer them. The first objection is that using first-generation biofuels in many cases supposedly does not cut greenhouse gas emissions.

“It’s true that some biofuels don’t show clear benefits. So let's simply not use them!

“On the other hand, most biofuels do actually offer benefits compared to fossil alternatives. Typically, biodiesel made from European-grown rapeseed makes a greenhouse gas saving of 44 per cent compared to fossil fuels. The typical figure for ethanol made from sugar beet is 48 per cent. I could cite other very positive values.

“Under the rules proposed by the Commission, a given biofuel would count towards a Member State's target only if it made a greenhouse gas saving of at least 35% compared to fossil fuels. That's a very healthy difference. And the standard applies both to domestic production and to imports.”

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