News - Biofuels

Fossil-fuel subsidies round-up: July and August 2010

News round-up.

Diminishing Expectations: Broken Promises in the Development of Cellulosic Ethanol Production

The United States' Environmental Protection Agency (EPA) recently acknowledged that, despite generous levels of taxpayer funding, cellulosic ethanol was not scaling up as quickly as they had hoped. So they reduced the 2010 cellulosic ethanol mandate from 100 million gallons to 6.5 million gallons. The basis for their decision was contained in a published update to the Renewable Fuel Standards Program.

Earth Policy Institute reveals food-cost of U.S. biofuels policy

On 21 January, the Earth Policy Institute published a data highlight on their website about the impact of United States biofuels production on world food supplies. Originally part of the larger work, Plan B 4.0: Mobilizing to Save Civilization, which stresses more generally the importance of acting to ensure world food supplies, the analysis starkly illustrates the cost of U.S. biofuels in terms of foregone food.

Subsidized U.S. Biodiesel: The Never-Ending Story

In 2004 the U.S. Congress created a USD$ 1/gallon (US$ 0.264/litre) blenders' tax credit for biodiesel that was slated to expire in 2006. But in 2005 it extended the tax credit through the end of 2008 and, before that year was up, extended it again, through 2009.

ECIPE conclude EU biofuels policy is costly, protectionist and risks violating WTO obligations

The European Centre for International Political Economy (ECIPE) has released a report criticizing the European Union's biofuels policy, Green Protectionism in the European Union: How Europe's Biofuels Policy and the Renewable Energy Directive Violate WTO Commitments.

Media Forum: Bangkok, Thailand

BANGKOK - 23-24 July 2009 - In partnership with the Southeast Asia bureau of the Inter Press Service, the GSI held its fifth media forum, bringing together 13 journalists from across the region and a variety of energy and climate change experts. The forum featured an ambitious agenda that centered on energy and climate change policies in South East Asia. The second day was dedicated to developing creative journalistic articles on related themes.

Biofuels subsidy studies in Canada and the U.S.; Subsidy transparency in Argentina; Farm subsidy poll in the U.S.

A new report by the Global Subsidies Initiative (GSI) quantifies government support for biofuels in Canada, and analyzes whether this expenditure represents good value for Canadian taxpayers.

Biofuels – At What Cost? Government support for ethanol and biodiesel in Canada is the latest in a series of reports addressing subsidies for biofuels in Australia, Canada, China, the European Union, Indonesia, Malaysia, Switzerland and the United States.

How much oil does ethanol displace?

Lobbists everywhere have a reputation for accentuating the positive and downplaying the negative. That is what they are paid for. But the main industry association representing subsidized U.S. ethanol producers, the Renewable Fuels Association (RFA), often exceeds the industry standard in expressing its exuberance for the benefits that its members'product-corn-based ethanol-has for the U.S. economy.

Biofuel Subsidies in Asia

Three recent reports by the Global Subsidies Initiative (GSI) survey subsidy policies for biofuels in China, Malaysia and Indonesia.

The reports marks a shift in focus for the GSI’s “Biofuels At What Cost?” series, from biofuel subsidy policies in OECD countries—which account for the lions share of global government support for biofuels—to that of certain developing countries that have stood poised to capitalize on heightened interest in these renewable fuels. 

Report estimates government support for biofuels in China

The Global Subsidies Initiative (GSI) has published a report revealing that China provided a total of RMB 780 million (US$ 115 million, roughly US$ 0.40 per litre) in biofuel subsidies in 2006. Total support is expected to reach approximately RMB 8 billion (US$ 1.2 billion) by 2020, according to official sources. This is likely to be a significant underestimate, as it does not include support to feedstocks, such as the RMB 3000 (US$ 437) per hectare per year available from 2007 for farmers growing feedstock on marginal land.

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