IISD estimates EU sugarbeet ethanol costs 160 times as much as equivalent in carbon offsets

The International Institute for Sustainable Development (IISD) published a study calculating a $760-$1000 cost per metric ton for reducing carbon dioxide emissions through sugar beet ethanol in the EU.

The report stated that, for the same cost, 160 tons of carbon offset credits could be purchased through the Chicago Climate Exchange. The study indicated that a carbon tax was a more cost effective path for climate control.

A draft report circulated last month to members of the Round Table on Sustained Development asserted that EU ethanol supports cost nearly $5000 per metric ton of reduced carbon dioxide emissions. The report also suggested instead the imposition of “technology-neutral” carbon taxes. But it is not clear why authors of reports on similar subjects have come up with such wildly different numbers on the cost of reducing emissions through biofuels.

In the US yesterday, Re. John Dingell (D-Mich) proposed a 50-cent per gallon carbon tax on gasoline, and an unspecified carbon tax on other emissions.

Carbon offsets were established under the Kyoto Protocol, and are created by emissions mitigation projects run by third-party companies such as AgCert, or directly by major enterprise.

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