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Speaking of Tariffs...

IEA Supports Biofuels, Urges Phase-out of Tariffs

Reuters reports that the International Energy Agency (IEA) is urging a worldwide phase-out of import tariffs on biofuels to lower the costs and to spur the use of renewable, clean-burning transport fuels made from crops.

Only Japan and New Zealand do not have import duties on ethanol, while Australia levies a duty of more than 20 cents per litre, the United States more than 15 cents and Europe about 10 cents, representing significant barriers to trade, the report said.

The recommendation comes in conjunction with the release of a new IEA publication, Biofuels for Transport - An International Perspective, available from the IEA online bookstore. (Paper: €75; PDF 1 User: €60)

In the absence of strong government policies, the IEA projects that the worldwide use of oil in transport will nearly double between 2000 and 2030, leading to a similar increase in greenhouse gas emissions. Biofuels, such as ethanol, biodiesel, and other liquid and gaseous fuels, could offer an important alternative to petroleum over this timeframe and help reduce atmospheric pollution.

In the short term, conventional biofuel production processes in IEA countries could help reduce oil use and thence greenhouse gas emissions, although the costs may be high. In the longer term, possibly within the next decade, advances in biofuel production and the use of new feedstocks could lead to greater, more cost-effective reductions. Countries such as Brazil are already producing relatively low-cost biofuels with substantial reductions in fossil energy use and greenhouse gas emissions.

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