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Researchers Suggest Changes to Biofuels Incentives Rather Than Rollbacks or Moratoria

Over the last six months, the focus of the biofuel debate in Europe and the United States has shifted from emphasizing the potential contribution of biofuels to increase energy security and reduce greenhouse gas emissions to concern about the impact on food prices, possible increase in greenhouse gas emissions and the loss of forests and biodiversity.

A report from reserachers at Harvard Kennedy School concludes that despite growing pressure from biofuels critics, governments should avoid simplistic and precipitous changes in course such as rollback or moratoria on existing biofuels mandates or incentives. Instead, the report urges governments to initiate an orderly, “innovation-enhancing” transition towards incentives targeted on multi-dimensional goals for biofuels development.

These goals should include poverty alleviation, reducing net greenhouse gas emissions, increasing use of non-food feedstocks, attaining sustainable biofuel production targets and conserving biodiversity.

The report stems from a two-day workshop in May 2008 hosted by Harvard Kennedy School, in cooperation with the Ministry for the Environment, Land and Sea Protection of Italy and Venice International University. The workshop convened 25 experts on biofuels, economic development and ecology. The purpose of the two-day session was to explore the actions needed to foster the sustainable development of biofuels investments while simultaneously mitigating the impacts on food prices and the environment.

Liquid biofuels can provide a much needed substitute for fossil fuels used in the transport sector. They can contribute to climate and other environmental goals, energy security, economic development, and offer opportunities for private companies to profit. If not implemented with care, however, biofuel production can put upward pressure on food prices, increase greenhouse gas (GHG) emissions, exacerbate degradation of land, forests, water sources, and ecosystems, and jeopardize the livelihood security of individuals immediately dependent on the natural resource base. Guiding biofuel development to realize its multiple potential benefits while guarding against its multiple risks requires the applications of a similarly diverse set of tailored policy interventions. Most sessions participants agreed that any single rule—such as production subsidies, s simple ban on biofuel production, or the immediate revocation of existing mandates for biofuel use—is too blunt an instrument, and will almost certainly do more harm than good.

—“Biofuels and Sustainable Development”

The report, co-authored by Henry Lee, William Clark and Charan Devereaux was released by the Sustainability Science Program of Harvard’s Center for International Development and the Belfer Center for Science and International Affairs.

Guiding biofuel development to realize its multiple potential benefits while guarding against its multiple risks requires the application of a similarly diverse set of tailored policy interventions, together with integrated efforts to assure that those interventions work synergistically rather than at cross-purposes, according to the report.

If the United States and Europe want to help the world to realize the potential of a sustainable biofuel industry, they must work to establish an international market to couple supply and demand, and the incentives for investment and innovation at the largest possible scale. Biofuel production should be centered in those regions where feedstocks can be grown most efficiently and where undesirable impacts are the smallest.

The report further warns that the potential benefits of an international market could be outweighed by the risks of damage to food and environmental systems unless adequate protective measures are simultaneously introduced. These protective measures will likely include the explicit recognition that sustainable production of biofuels cannot be expanded indefinitely. There are intrinsic limits on the productive capacity of ecosystems, constraining yields per unit of available area and the amount of area that can be dedicated to sustainable biofuels production.

The report outlines both the benefits and costs to increased biofuel use and provides a number of suggestions for governments in areas such as infrastructure development, agriculture research and development, certification protocols and standards and land use governance.

Resources

Comments

I question the validity of the Fuel vs. Food debate. How can there be fuel use pressure on crops when:

• So many states are completely devoid of bio fueling stations
• So many owners of flex-fuel vehicles don't know what it means.
• Biofuel prices move in lock-step with gasoline and diesel prices

I don't buy it - neither the hype nor the product.

Kit P

What a racket. And where did they go to discuss biomass renewable energy, Brazil, Iowa?

Venice - Island of San Servolo

I have little use for college professors and government hacks. After reading the report, I would be embarrassed to post to a web site. Talk about a waste of jet fuel.

Adam

Anonymous:

I agree with you in general, food prices would be on their way up nearly as much as they are without biofuels. But one argument of yours doesn't hold: biofuel prices should move in lock-step with gas and diesel, because they're near perfect substitutes. Their manufacturers would be foolish to charge less (unrealized revenue) or more (loss of market). Because there's overwhelmingly more fossil fuel, that's what sets the price.

[q->t to email]

sjc

Once we get to cellulose biofuels it will be fine. It is getting the massive amount of capital formed to get to the cellulose biofuels that will be the challenge.

Henric

Well,
Their point is that current biofuels i.e. ethanol and methyl esters of fatty acids are of course adequate substitutes for gas and diesel but they are coming from food sources, and they do not contribute to the reduction of greenhouse gas emissions all that much.
And they are right!
The only renewable source of liquid fuels that has any potential of GHG reduction is the lignocellulosic biomass. This is cellulosic ethanol, biomass-to-liquids via gasification and F-T synthesis.
It is interesting what is going to win. Maybe it is cellulosic biofuels, or maybe electricity. But I doubt that electricity has any chance, no good storage for transport possible.

Kit P

@HENRIC

So you are saying that you eat lots of surgar cane and high sugar feed corn? And yes they do not reduce ghg gas as much as your magic wand. No those are not food sources. That is energy not protein.

I have a theory. Once something emerges from the real of the impractical and starts to make a difference the greenies have to beat it down by comparing to their favorite form of not yet practical.

Henric

Kit,

Yes, I eat them, same as you! I eat sugar which for the most part comes from sugar cane. And I eat corn bread and all other stuff made from corn. And even if we did not eat these things, they take up land that otherwise could be used to grow something else more edible if you do not like corn.
But basically your theory is right. Corn ethanol is something that can really be done with a technology proven over a thousand years, with minimal investments and no change to infrastructure. That's why they are doing it right now. Same for sugar cane. Everyone's bashing it.
But it is a fact that these things do not reduce GHG emissions all that much. It is simply that some people want to make money, as with any other thing. I want to make money too. But I can't do that with corn ethanol, this niche is already occupied. That is why I am thinking beyond fermentation of corn. Of course if I start to produce cellulosic ethanol, everybody is going to try to beat me down.

HarveyD

Gas guzzlers running on cellulosic agro-fuel will get about 20% x 1% = 0.2% total Sun to Wheel efficiency.

BEVs running on high efficiency Solar power will get about 85% x 25% = 21% Sun to Wheel efficiency.

The latter approach is about 105 times more efficient and should be selected based on efficiency alone. Secondly, since sun power would use dessert land and roof tops etc, ALL good croplands would remain available for food production. Food prices would drop to a more affordable level.

HarveyD

Gas guzzlers running on cellulosic agro-fuel will get about 20% x 1% = 0.2% total Sun to Wheel efficiency.

BEVs running on high efficiency Solar power will get about 85% x 25% = 21% Sun to Wheel efficiency.

The latter approach is about 105 times more efficient and should be selected based on efficiency alone. Secondly, since sun power would use dessert land and roof tops etc, ALL good croplands would remain available for food production. Food prices would drop to a more affordable level.

Kit P

@Harvey D

What is the solar efficiency of diary cows producing milk compared to synthetic milk from solar generated electricity?

Wait for Harvey to make up an answer relating practical methods of producing a something compared to an impractical method.

There are those who make up irrelevant criteria to be against something that works like ghg, eroi, efficiency, food supplies cost. The sad part is that they are almost always wrong.

The problem with Harvey's logic is that farmers growing corn in Iowa are not stopping California loons from putting a solar panels on their roofs to charge their BEV. It is not one or the other.

So Harvey how is your solar system working to charge your batteries? Do you have any actual data? No, it is not practical that is why Harvey loves the idea so much. On the other hand, US farmers making ethanol is reducing the demand for foreign oil which creates a market for crops that they had too much of.

Hate to beat the horse here but the GHG hype has been over for a long while now. Fables give way to fact and THAT means real progress.

But when will the GHG denial hype end???

Kit P

When better hype comes along

I am concerned about the running out of phosphorous and the environmental impact of wasting it. While I have seen research papers echo my concern, starving to death does not have the same appeal as virtual model predicting the world may change when change is the only constant in the environment.

Wetdog

I don't know to many people who eat saltwater algae and dead tree limbs.

Saltwater algae = biodiesel fuel (in production right now)

Dead tree limbs = ethanol (in production right now)

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