EU Agricultue Commissioner debunks arguments against EU biofuels policy

The EU's Agriculture Commissioner, Mariann Fischer-Boel, has responded to criticism of the EU’s biofuels policy, arguing that, so far, nobody has brought any scientifically or economically sound arguments against it, and that instead the sector will bring real benefits to everyone. She also supports the kernel of a 'Biopact' with the South, promoted recently by Brazil's president Lula at the landmark International Biofuels Conference organised by the EU last July (previous post). Such a Biopact offers a win-win situation for all of us.

Fischer-Boel is appalled by the weakness of many of the arguments against biofuels, none of which have been credible up til now:

While we take well-reasoned arguments extremely seriously, we have not seen anything yet to deflect us from the goals [that biofuel will make up 10 per cent of transport fuel by 2020] signed up to earlier this year by EU leaders. - Mariann Fischer-Boel, EU Agriculture Commissioner

She adds that many of the NGOs who have been complaining for years about a lack of agricultural opportunities in developing countries, now suddenly criticize the emergence of the largest such opportunity in decades.

Biopact certainly agrees that much of the criticism against biofuels in general is not supported by any credible facts. However, there definitely are some highly problematic aspects, like the lavish subsidies in the EU and the US, the tariffs which keep much better biofuels from the South out of the market, and the lack of courage to help developing countries tap their huge sustainable biofuels potential by means of science and tech transfers.

The good thing is that Fischer-Boel indicates she is willing to further review the EU's current biofuel subsidy schemes (one of which, for energy crops, was recently scaled back, earlier post), and that the Union will import fuels from the South, where they can be produced much more efficiently and yield major social and economic benefits.

Food 'versus' fuel: a falsified debate
When it comes to food 'versus' fuel, all those who say biofuels are the major cause for increases in food prices are out of line. Fischer-Boel, a former Danish minister for food herself, says the statistics do not support the claim in any way: the EU uses less than two per cent of its cereals output for ethanol, which can never explain the double digit per cent increase in prices for cereal based food.

The real causes are bad weather in Australia, which has had a huge influence, the fact that key suppliers like the Ukraine have banned exports and that food demand in the emerging Asian economies is skyrocketing. Moreover, high oil prices are to blame for increased processing costs - the very prices which can be lowered by cheaper biofuels:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: biodiesel :: climate change :: agricutlure :: subsidies :: tariffs :: EU ::

European MEPs last week called on the commission to conduct an environmental and food-security impact assessment which takes account of existing competition for land and resources between food and plant-based fuel production in the EU. The assessment will bring reason to the debate which has been hijacked by some people who just say whatever they want without looking at the actual numbers and facts.

Subsidies
Fischer-Boel also debunks suggestions from the 'environmental lobby' [note: these are the words of 'The Parliament'] that biofuel production may do more harm than good to the environment. Writing in the latest issue of the Parliament Magazine, the agriculture commissioner says that speeding up the production of the second generation of fuels will have a huge positive impact on Europe’s CO2 emissions.

She is willing to review the current subsidy schemes with this in mind:

I will look into the possibility of abolishing the current aid to first-generation biofuels and diverting the money to promote innovation in second-generation biofuels.

Since 2004, the EU has been granting subsidies to encourage farmers to grow biofuel crops, raising fears of a move away from food production in the EU. Funding applications for 2007 have now reached their annual limit, sparking renewed concern.

Imports
Fischer-Boel explains that fixing the biofuels target at 10 per cent is “both realistic and sustainable”. She does add that in order to ensure food security, some of Europe’s bioenergy needs will be met by imports, provided the fuels meet emissions criteria.

Clearly, it makes no sense at all to import biofuels if more CO2 is made during their production than is saved when using them or if they create other environmental problems. The commission will therefore ask for a guarantee that imported biofuels do not come with a negative environmental performance tag.

Many of the biofuels that could be produced in the South have a very strong emissions and energy balance. They reduce carbon emissons far more than fuels produced in the North, and they require far fewer energy inputs. Shipping them in large tankers to the EU is highly efficient and does not change this situation. Next generation conversion processes will make these emissions and energy balances even stronger.

Fischer-Boel sees major chances for the developing world to participate in and profit from the biofuels market:

For years, we have been criticised for dumping subsidised food in the third world. The same critics have always said the answer to Africa’s problems is an end to such subsidies and rising world commodity prices. There is no doubt that the rising food prices can create problems for parts of the population. But it is also true that it will encourage agricultural production in the developing world and many developing countries have special natural advantages in producing input for biofuels. Our internal reform process has reduced production and allowed us to offer to phase out export subsidies.

Fischer-Boel further referred to Brazil's successful biofuel sector and that the country is condifent enough of the environmental and social benefits of the biofuels sector to allow its fuels to be certified:

We take heart from Brazilian president Lula’s statement in July in Brussels that his country is prepared to offer environmental and social certification for bioethanol.

Lula convinced the EU of the need a kind of 'Biopact' with countries from the South. He did so at the recent landmark International Biofuels Conference organised to debate and map out the EU's bioenergy future (earlier post). Biopact was invited to the non-public Conference and was recognized as an interesting voice in the debate.

CAP reform & the environment
Brussels will soon publish a communication setting out its ideas for possible improvements to the common agricultural policy (CAP), the so-called ‘health check’.

The 2003 CAP reforms have placed a much greater premium on reducing the environmental impact of farming. This also applies to the production of bioenergy and to the use of pesticides, where farmers are subject to strict limits.

Fischer-Boel remains convinced that bioenergy will prove to be a strong card for the future of European agriculture.

References:
EU Parliament Magazine: Biofuels: Real benefits - October 29, 2007.

The Parliament: EU agriculture chief: Biofuel policy ‘realistic and sustainable’ - October 30, 2007.

Biopact: EU cuts back on energy crop subsidies - October 18, 2007

Biopact: How Brazil convinced the EU on biofuels - Lula's speech - July 06, 2007

Biopact: Highlights from the International Conference on Biofuels (Day 1) - July 05, 2007