UN report calls for caution on biofuels
Wed 16 May 2007
View all news
The United Nations has issued a report urging governments to take a cautious approach to developing biofuels. It says negative impacts could outweigh benefits if production is not managed sustainably. Meanwhile, the Co-operative Insurance Society has also urged firms to consider the long-term sustainability issues before rushing into biofuels production.
The UN report, compiled by inter-agency body UN-Energy, says biofuels policies must protect threatened land and promote socially acceptable land use. The report warns that the drive to switch over to biofuels could lead to rising food prices and deforestation.
UN-Energy says that around nine per cent of the world's agricultural land may be needed to replace 10% of the world's transport fuels and that this means the production of biofuels could lead to a decrease in land available for food production in countries where famine already exists.
Both the UK government and the EU have said that by the year 2020 they want 10% of all road transport fuel to come from biofuels.
Co-op Insurance, the investment arm of the Co-op also warns of the potential negative environmental impacts of biofuels. Its report, however, says there is a future for biofuels if they are produced sustainably.
In a press release Co-op Insurance says that companies are jeopardising future performance by ploughing headlong into biofuels without considering the long-term issues: " While Co-operative Insurance supports the use of biofuels it is concerned about the potential environmental and social dangers if growth continues at its current rate. It is therefore warning companies that investing in biofuels could backfire unless sustainability criteria are built into the supply chains".
Related Documents
Related Links
< Back to news list