Policy recommendations

  • The European Union must ensure that its Energy Policy will not harm the food security of the urban and rural poor in developing countries, whose daily survival is threatened by substantially higher food prices. It should draw up a strategy to ensure the urban and rural poor are compensated for higher food prices before installing mandatory levels of biofuels;
  • The European Union should abolish its domestic subsidies and import tariffs for biofuels, in order to allow developing countries to profit from the trade opportunities biofuels offer;
  • The European Union should draw up comprehensive sustainability criteria for biofuels, including more ambitious standards for greenhouse-gas reduction a slight decrease of emissions as compared to fossil fuels is simply not enough and the protection of biodiversity and carbon-rich ecosystems;
  • The European Commission should include social criteria in its review of the Biofuels Directive to guarantee that the rural populations who live off marginal lands and forests are not hurt by expanding agricultural production;
  • The European Union should stimulate local processing and the use of sustainable biofuels in developing countries. Small-scale farmer cooperatives should be stimulated to prevent the benefits from biofuel production from only falling into the hands of large-plantation owners.

Case: Biofuels

07-10-2008 Biofuels and the current food crisis

 07 October 2008

On the 6th of October a public hearing was held within the Development Committee of the European Parliament on the use and production of Biofuels in developing countries. Steve Wiggins of the Overseas Development Institute (ODI) presented a draft study on the relation between the production of biofuels and the current rise in food prices, also the impact of the production itself on developing countries was evaluated.

The production of biofuels has increased tremendously due to a combination of high oil prices, energy security concerns and the fear of global climate change. More and more crops such as sugar cane, maize and wheat are converted into ethanol, and rapeseed and palm oil into biodiesel. In addition, the production of biofuels in the EU is highly subsidized, which of course also contributes to a further increase in production.  This increase in biofuels production has led to higher demands for these agricultural products. As a result it is claimed, prices have increased as well, and thus poverty is increasing, as the population living below the poverty line cannot buy the same amount of food for the same price.

Concerns about this issue have been raised in the past by various NGOs and other stakeholders involved. MEP Cristina Muscardini (UEN) recently asked the European Commission in a written question; how and why the production of biofuels is contributing to the rise of prices of agricultural product. She also inquired how the EU could tackle this problem and could help to stabilize the prices of these agricultural products. For instance by integrating the rise of food prices in the fight against poverty, one of the Millennium Development Goals (MDGs).

During the public hearing however, the enormous impact of the biofuels production on the rise in food prices was not denied but strongly questioned. Numerous research has been conducted by various stakeholders on the issue, and various outcomes ranging from 3% to 70% (little to great impact on food prices) have been presented. According to Mr. Wiggins of the Overseas Development Institute the effects within the developing countries concerning the increase in biofuels production are more disturbing than the relation between the production of biofuels and the rise in food prices. Mr. Wiggins states; the focus should be on the management of the production of biofuels within the developing countries. When the production is better regulated and managed well, opportunities for developing countries are to be foreseen. 

Mr. de Schutter (UN Special Rapporteur on the right to food) who was present  as well during the public hearing also recommended the sustainable production of biofuels, which can be reached with the introduction of environmental standards, human right standards and better labour conditions. Furthermore he said that a platform should be installed in order to come up with best practises amongst  the developing countries which are producing biofuels.

Fair Politics EU acknowledges the relation between the increase in the production of biofuels and the rise in food prices, but doubts the enormous impact figures which have been presented in the past. Other factors including the meat industry, the ongoing agricultural subsidies under the CAP and climate change should also be taken into account. To illustrate this point; in order to produce 1 kg of meat, 5 kg of wheat and forage is needed. Therefore if we want to end the food crisis, we should next to monitoring the production of biofuels also seriously focus on the meat industry. 

Fair Politics EU also sees opportunities for the farmers in developing countries concerning the production of biofuels. If better regulations are installed and the production is being monitored closely, the production could become more sustainable and economic developments could be stimulated.