Using less energy more effective than biofuels

Adelaide Advertiser
Friday 18/7/2008 Page: 85

MASSIVE government subsidies for biofuels are not helping to cut greenhouse gas emissions, according to a report released yesterday.

The U.S., EU and Canada spent US$17.6 billion in public money to support energy crops in 2006, and will more than double that over the next 10 years, according to estimates by Paris-based Organisation for Economic Co-operation and Development. But this failed to reduce greenhouse gas emissions from transport by more than 1 per cent, the OECD said, recommending governments would see more savings from a lower-cost push towards cutting energy use overall.

"biofuels produced from wheat, sugar beet or vegetable oils rarely provide greenhouse gas emission savings of more than 30 to 60 per cent, while corn/maizebased ethanol generally allows for savings of less than 30 per cent," the report said. "The costs of cutting emissions by saving energy are lower than by switching to alternative energy sources, in particular biofuels," it said.