RETHINK BIOFUELS – UN OFFICIAL

While admitting circumstances have contrived a “perfect storm” of malefactors driving world food prices up (including drought, flood, earthquake and out of control oil prices), an administrator of UN food assistance programs said ethanol subsidies and incentives were one factor that could and should be reconsidered.

The issue is vital because the burden for world fuel competition is now falling on those least capable of bearing it. By shifting the problem from energy cost to food cost, the world’s hungry pay most.

Kemal Dervis, Administrator, United Nations Development Programme (UNDP): "One important thing we are discussing is that the fight against climate change and fight against poverty should not be viewed as two separate things. They must be integrated into the overall strategy…"

Dervis also described a failure to coordinate relief efforts as aggravating the effects of rising food prices on the world’s hungry.

Dervis, UNDP: "Unfortunately, very often the world only acts when there is a crisis. It does not act to prevent the crisis. It acts when it is almost too late…if the world and the international community had been able to coordinate better, we probably would not be in this very difficult situation right now."

The most immediate solution, some say, is a moratorium on the production and sale of biofuels. The biofuels industry is not enthusiastic. They claim it would not only undo the industry but retard efforts against global climate change.

Many scientists are beginning to question the efficacy of biofuels as a climate change mitigation. Studies suggest biomass is more efficiently used as a source of biogas to generate electricity.

The recent UN FAO summit in Rome took up the issue, as will the upcoming G8 in July. Some want more input from the hungry. Dervis, UNDP: "The time when a small group of rich countries make all the decisions should be passed."

Somebody pass that on to The Decider.

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Biofuel Programmes need rethink – UNDP
Yoko Nishikawa, May 29, 2008 (Reuters)

WHO
Kemal Dervis, Administrator, United Nations Development Programme (UNDP)

The 2007 U.S. energy bill is an excellent example of government policy incentivizing the use of food crops for fuel. (click to enlarge)

WHAT
Dervis called for the nations of the world who are sponsoring or subsidizing food crop-derived ethanol to reconsider.

WHEN
- June 3-5, 2008: A UN summit is scheduled in Rome to confront the issue.
- July 2008: G8 Summit host nation Japan has added the food/fuel price crisis to the agenda.
- 2015: Target for achieving the U.N. Millennium Development Goals, a set of eight globally agreed objectives. The first goal is eradicating poverty and hunger.

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WHERE
- Calculations indicate biomass such as biofuel and agrofuel crops are more efficiently used as a source of biogas to generate electricity.
- The U.S. and Brazil are the world leaders in biofuels exports.

WHY
- The rise in food prices has stimulated a fervent debate between biofuels industry advocates who claim a “perfect storm” of factors, from the subprime mortgage troubles to commodities market speculation, has conspired to drive prices up.
- Anti-Agrofuels activists claim the problem is government policies incentivizing the use of food crops and crop lands for fuel production.
- Activists are calling for a moratorium on the production and sale of biofuels.

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QUOTES
Dervis, Administrator, UNDP: "There are many causes [of food price increases]…One of them is the ethanol programmes that are based on food crops, which are being subsidied by some of the rich countries ... This is something that needs to be looked at very carefully."