Biofuels: At What Cost? An In-Depth Report on Subsidies to Biofuels in the European Union
In order to help stimulate an informed debate on the costs and benefits of the European Union's biofuels policies, the Global Subsidies Initiative (GSI), a division of the International Institute for Sustainable Development, launched its report on subsidies to biofuels in the European Union today at the European Parliament in Brussels .
Download the GSI Report: "Biofuels at What Cost? Government Support for Ethanol and Biodiesel in the European Union"
The GSI report, "Biofuels: At What Cost? Government Support for Ethanol and Biodiesel in the European Union", questions the rationale behind the very large sums of money being invested in support of this particular form of energy.
Subsidies and other forms of government support are strongly linked to the amount of biofuels that are produced and consumed in the EU. While current policies have been promoted as a way to decrease CO2 emissions, they are an expensive and ineffective means to achieving that goal. Transfers per tonne of CO2-equivalent removed are estimated to be between 575 and 800 euros for ethanol made from sugar beet, around 215 euros for biodiesel made from used cooking oil, and over 600 euros for biodiesel made from rapeseed. Purchasing CO2-equivalent offsets on the European Climate Exchange would be far cheaper.
The International Institute for Sustainable Development (IISD) set up the Global Subsidies Initiative in December 2005 to examine the extent to which public subsidies can cause counterintuitive outcomes that undermine sustainable development. The GSI's aim is to look behind the official justifications offered for public subsidies and study the extent to which they make economic, environmental and social sense.
For more information on "Biofuels: at What Cost? Government Support for Ethanol and Biodiesel in the European Union", and the Brussels launch of the report, please contact Javed Ahmad, the GSI's Director of Communications, at [email protected].
About IISD
The International Institute for Sustainable Development (IISD) is a globally recognized think tank with 3 decades of experience working to solve the world’s most pressing sustainable development challenges. We combine deep expertise in a wide range of issues with a collaborative approach to research, policy advice, and hands-on support to ensure these solutions are brought to life. Headquartered in Winnipeg, Manitoba, we are a diverse team of over 300 professionals working from offices in Canada, Switzerland, and other locations around the world.
You might also be interested in
Carbon Pricing in the ASEAN Region: Moving from ambition to architecture
Carbon pricing is steadily moving into the mainstream of Association of Southeast Asian Nations (ASEAN) policy discussions. The question is no longer whether to price carbon, but how to build systems that are credible, durable, competitive, and fair.
Mapping Indonesia’s Battery Electric Vehicle Ecosystem
In a closed-door discussion under Chatham House Rules, policy-makers, industry players, and researchers explored Indonesia’s battery electric vehicle (EV) ecosystem and the policies shaping it.
Bonn Climate Talks: What to watch for the fossil fuel transition
As governments return to Bonn for the UNFCCC Subsidiary Bodies meetings (SB64), the transition away from fossil fuels will be a key test of whether growing political momentum can translate into practical progress.
Energy Subsidy Reform Urgent as Spending Jumps 266.5%, Experts Say
Reforming Indonesia’s energy subsidies would strengthen fiscal credibility, ease pressure on the state budget, and support President Prabowo Subianto’s energy transition agenda, according to policy experts.