A study released last month by the United Nation's Economic Commission for Latin America (ECLA) found that subsidies will be required to establish large-scale production of biodiesel in Central America.

The study, entitle "Perspectives for Biodiesel in Central America" was conducted by biofuels specialist Waldyr Luiz Ribeiro Gallo, of Brazil. It looked at the biodiesel industry in Costa Rica, El Salvador, Guatemala and Honduras and the capacity for those countries to increase production.
 
Mr. Ribeiro Gallo concluded that some type of economic subsidies or tax benefits would be required if these countries chose to increase domestic production of biodiesel. According to the study, subsidies have been provided in every country that produces biodiesel on a large scale.