Personal tools
Skip to content. Skip to navigation

EUbusiness.com - business, legal and economic news and information from the European Union

Sections
You are here: Home Breaking news OECD official urges that biofuel subsidies be scrapped
Document Actions

OECD official urges that biofuel subsidies be scrapped

09 June 2008, 11:59 CET

(BERLIN) - An OECD agriculture official urged on Monday that biofuel subsidies be scrapped, saying this was the quickest way to fight rising food prices.

"I call urgently for reduced support for biofuels," said Stefan Tangermann, agriculture director for the Organisation for Economic Cooperation and Development.

"It is the only lever on which we can act rapidly," he added during an address to a farm forum in Berlin.

The OECD forecasts that food prices, in particular the cost of cereals, will remain high and that development of biofuels is responsible for around one-third of recent increases.

The use of cropland for biofuels has become a controversial topic.

Big producers of ethanol such as Brazil and the United States deny there is a connection between increased growing of crops for such fuels and higher food prices.

The issue was debated last week by the United Nations food summit in Rome, but no concrete statements or positions resulted.

The European Commission supports expanding biofuel agriculture and would like 10 percent of all transport to be driven by such fuels by 2020.

That goal is "imperative," stressed Klaus-Dieter Borchardt, a deputy to EU Agriculture Commissioner Mariann Fischer Boel.

He warned against making biofuels "the whipping boy" of soaring farm prices.

Borchardt said "the first generation of biofuels is in a necessary transition phase" and crops would eventually be replaced by waste products and wood as sources of energy.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




Subscribers
EUbusiness Week 421
EU green light for non-standard fruit and vegetables
NEWSLETTER SIGNUP
Week Ahead
CAP reform Health Check
WEEK AHEAD SIGNUP
Premium Partner
Credit Crunch and Late Payments - Intrum Justitia
PARTNER SIGNUP
* SUBSCRIPTIONS *
Cache EUB's Breaking News Portlet as HTML Cache EUB's Upcoming Events Portlet as HTML
Text links
Text links
Your link here