Chapter 5 BIOFUELS, ENVIRONMENT, AND FOOD


The Story Gets More Complicated


David Laborde and Siwa Msangi, IFPRI P


olicy discussions over biofuels in 2011 reflected the increasing complexity of the issue over the past decade. Originally promoted as a


way of decreasing dependence on fossil fuels and avoiding the carbon emissions generated by them, biofuel produc- tion has now been widely recognized to have strong links to agricultural markets and even land-use paterns. Te first-generation biofuels currently in commercial use— biodiesel made from vegetable oil and ethanol made from sugarcane or maize—have the strongest links to agricul- tural markets and land use, although there are important by-products that can be used as feed in order to offset these effects. Given the areas of scientific uncertainty that still remain over the impact of biofuels on food security and the environment, decisionmaking has become com- plex and, in some cases, contentious.


Nearly a dozen international institutions came together in 2011 to issue a


joint report that addressed the issue of biofuels and food prices and called for eliminating distortive biofuel policies, especially where the environmental benefits are not as high as expected.1 Te Group of 20 (G20) also raised the issue of biofuels in 2011 as part of its overall concern with food security. Te G20 countries recognized the need to examine the role of biofuels in food price volatility and to adjust biofuel mandates when market situations warrant


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