Another Inconvenient Truth

How biofuel policies are deepening poverty and accelerating climate change

The current biofuel policies of rich countries are neither a solution to the climate crisis nor the oil crisis, and instead are contributing to a third: the food crisis. In poor countries, biofuels may offer some genuine development opportunities, but the potential economic, social, and environmental costs are severe, and decision makers should proceed with caution.

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Summary

Biofuels are presented in rich countries as a solution to two crises: the climate crisis and the oil crisis. But they may not be a solution to either, and instead are contributing to a third: the current food crisis.

Meanwhile, the danger is that they allow rich-country governments to avoid difficult but urgent decisions about how to reduce consumption of oil, while offering new avenues to continue expensive support to agriculture at the cost of taxpayers.

In the meantime, the most serious costs of these policies – deepening poverty and hunger, environmental degradation, and accelerating climate change – are being ‘dumped’ on developing countries.

Date of publication: June 2008