New T&E/BirdLife Europe report attempts to reopen food vs fuel debate

September 19, 2017 |

In Belgium, despite industry’s efforts to deny the impact of biofuels on food prices, a new study shows there is wide scientific consensus that biofuels policies increase global food prices. The analysis, conducted by consultancy Cerulogy for BirdLife Europe & Central Asia and Transport & Environment, reviews over 100 economic modelling studies of the impact on food prices because of increased demand for biofuels made from food crops.

Increased demand for biodiesel has had the highest price impact on vegetable oils in the EU such as rapeseed, palm oil, soy and sunflower – a 171% increase in prices in the EU per exajoule (EJ) of biodiesel produced. EU oilseeds (before crushing to oil and meal) saw 25% higher prices. At a global level, biodiesel demand is associated with an increase of 38% per EJ on global vegetable oil prices. Ethanol feedstocks have also significant impacts, with wheat ethanol increasing global wheat prices by 20% per EJ and sugar-based ethanol increasing world’s sugar prices by about 40% per EJ.

Category: Fuels

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