Bridges Trade BioRes • Volume 6 • Number 3 • 17th February 2006

New EU Biofuel Strategy: Export Possibilities, But Watch for Natural Resources

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On 8 February, the European Commission presented its new biofuels strategy which outlines a series of measures to promote biofuels within the EU and developing countries. The plan intends to boost the production of fuels such as biodiesel and bioethanol through additional aid and investment in an effort to reduce dependency on fossil fuels and emissions of greenhouse gases. In so doing, the EC seeks “to prepare for large-scale use of biofuels, and to support developing countries where biofuel production could stimulate sustainable economic growth.” EU Development Commissioner Louis Michel stressed the potential export possibilities for developing countries, especially those affected by recent EU sugar reforms which cut the purchase price of sugar from African, Caribbean and Pacific countries. The African, Caribbean and Pacific (ACP) group of countries welcomed the initiative last week, but warned that “a secure and substantial fund” should be created specifically for the ACP sugar protocol countries.

While WWF, Birdlife International and the European Environmental Bureau (EEB) welcomed the Commission’s commitment to ensuring the environmental sustainability of biofuels, the non-governmental organisations said they were concerned that the new strategy did not guarantee that wildlife would not be harmed. They argued that there was a danger that growing crops for fuels in developing countries could lead to biodiversity losses by, for example, the clearing of rainforest for agricultural production. WWF therefore demanded the introduction of mandatory eco-certification for all biofuels produced in the EU or imported from outside.

“Commission urges new drive to boost production of biofuels,” EUROPEAN COMMISSION, 8 February 2006; “The European Union says increased use of biofuels in developing countries could bring huge benefits, especially to those affected by the bloc’s sugar reform,” IPC, 8 February 2006; “WWF asks for mandatory eco-certification for biofuels,” WWF EUROPE, 8 February 2006; “Birdlife urges caution in biofuel drive,” BIRDLIFE INTERNATIONAL, 8 February 2006; “Farm commissioner pushes case for biofuels,” EurActiv, 10 February 2006.