economy
Scramble for biofuel as oil prices rise ‘could push world closer to food crisis’
Experts say increased use of crops for fuel is ‘dangerous game’ that could send food price inflation soaring
TL;DR
- Biofuel demand is likely to increase by nearly a third this year, potentially exacerbating food price inflation and contributing to a global food crisis.
- Countries are increasing biofuel use due to the near $100 per barrel oil price following attacks on Iran and the closure of the Strait of Hormuz.
- Biofuels compete with food crops for land and fertilizer; for instance, 10% of US fertilizer use and 20% in Indonesia are for biofuels.
- Experts warn that biofuels play only a marginal role in the energy system without severe consequences on food prices and the environment.
- The UN estimated that biofuel use contributed 40%-70% of the increase in maize and soya bean prices during the 2007-08 food crises.
- Electrification is proposed as a more sustainable alternative, with solar panels covering a small fraction of biofuel land potentially powering a third of the global car fleet.
- Biofuels can be carbon-intensive, producing more CO2 than fossil fuels due to deforestation and land-use changes, though waste-based biofuels offer some savings.