Paying the Price for Biofuels
22 November 2005
THE drive for "green
energy" in the developed world is having the perverse effect of
encouraging the destruction of tropical rainforests. From the orang-utan
reserves of Borneo to the Brazilian Amazon, virgin forest is being razed
to grow palm oil and soybeans to fuel cars and power stations in Europe
and North America. And surging prices are likely to accelerate the
The rush to make energy from vegetable oils is being driven in part by European Union laws requiring conventional fuels to be blended with biofuels, and by subsidies equivalent to 20 pence a litre. Last week, the British government announced a target for biofuels to make up 5 per cent of transport fuels by 2010. The aim is to help meet Kyoto protocol targets for reducing greenhouse-gas emissions.
Rising demand for green energy has led to a surge in the international price of palm oil, with potentially damaging consequences. "The expansion of palm oil production is one of the leading causes of rainforest destruction in south-east Asia. It is one of the most environmentally damaging commodities on the planet," says Simon Counsell, director of the UK-based Rainforest Foundation. "Once again it appears we are trying to solve our environmental problems by dumping them in developing countries, where they have devastating effects on local people."
The main alternative to palm oil is soybean oil. But soya is the largest single cause of rainforest destruction in the Brazilian Amazon. Supporters of biofuels argue that they can be "carbon neutral" because the CO2 released from burning them is taken up again by the next crop. Interest is greatest for diesel engines, which can run unmodified on vegetable oil, and in Germany bio-diesel production has doubled since 2003. There are also plans for burning palm oil in power stations.
Until recently, Europe's small market in biofuels was dominated by home-grown rapeseed (canola) oil. But surging demand from the food market has raised the price of rapeseed oil too. This has led fuel manufacturers to opt for palm and soya oil instead. Palm oil prices jumped 10 per cent in September alone, and are predicted to rise 20 per cent next year, while global demand for biofuels is now rising at 25 per cent a year.
Roger Higman, of Friends of the Earth UK, which backs biofuels, says: "We need to ensure that the crops used to make the fuel have been grown in a sustainable way or we will have rainforests cleared for palm oil plantations to make bio-diesel."