The British government is to reduce its biofuel programme following a report which links the surge in demand for alternative fuel crops to soaring food prices.
Image: Corn tassel. Credit: Spedona
Transport secretary Ruth Kelly told Parliament that while biofuels had the potential to reduce carbon emissions, an "uncontrolled" biofuels policy would have an impact on food prices, increasing poverty and the destruction of rainforests. A recent government report questioned the wisdom of the government's subsidies but urged the government to "amend not abandon" biofuel policies.
Ms Kelly said the government acknowledged "that biofuels can have an important role in reducing carbon emissions and combating climate change," but added, "We need to proceed cautiously until we can be certain that their expanded growth and use maximises the benefits and minimises the risks to our world."
Environment Secretary Hilary Benn agreed saying: "To tackle climate change we will need to develop new, cleaner fuels - but that doesn't mean pushing forward indiscriminately on biofuels that may do more harm than good."
The news comes as the World Bank president Robert Zoellick told reporters at the G8 summit in Hokkaido, Japan that rich countries should grow more food, and reduce subsidies on biofuel production.
Zoellick described a system which amounted to a "double jeopardy of soaring fuel and food prices" that test "the global system's commitment to help the most vulnerable."
He added the high price of oil had increased the market for biofuels, which had increased with industrialised countries' subsidies for the alternative fuel.
"The US and Europe also need to take action to reduce mandates, subsidies and tariffs benefiting grain and oil seed biofuels that take food off the table for millions," he said on the sidelines of the meeting.
Zoellick blamed corn and rapeseed production in the United States and the EU as most to blame for the problem.
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