U.N. Says BiofuelsBoost Food Prices, Have Little CO2 Impact

Making biofuels from crops such as corn has driven up food prices and done little to reduce greenhouse gas emissions, and governments should consider ending programs that subsidize crop biofuel production, according to a report from the U.N. Food and Agriculture Organization (FAO). The report said that the biofuel boom has played a role in recent steep price rises for corn, sugar, palm oil, sunflower seed, and other commodities, while only marginally reducing use of fossil fuels. With the exception of biofuel made from sugarcane in Brazil, other crop biofuel programs rely on government mandates and subsidies to survive, the report said. The FAO said there is an “urgent need” to reconsider such subsidies and recommended that more funding should be given to the development of “second generation” biofuels, such as algae. In countries such as the U.S., however, eliminating subsidized biofuel production faces high hurdles because of the powerful agriculture lobby.