News

November 09, 2008

That Was The Week That Was … In Grains And Alternative Fuel Commodities

By Sally White

A row is developing internationally about biofuel tarrifs, with claims that unfair barriers are being raised by the EU against biofuel exports from eight developing countries. These are Argentina, Brazil, Colombia, Malawi, Mozambique, Sierra Leone, Indonesia and Malaysia. These countries are threatening to file a complaint with the World Trade Organisation (WTO). Meanwhile, US plans to cut pollution are likely to be pushed further out and the financial crisis is likely to mean cuts in world ethanol production.

The EU offers a vast potential source of exports for these developing countries, because of the proposal that 10 per cent of all road transport fuel should come from renewable sources by 2020. Much of that would come from biofuels, creating a huge market that is coveted by exporters such as Brazil and Indonesia, as well by as EU farming nations. While the 10 per cent target may yet be reduced, the EU will remain a huge market. The European Parliament is considering whether it should reduce from...