IISD Completely Misses the Mark on EU Biofuels

TORONTO, Canada – Today the Global Renewable Fuels Alliance (GRFA) reacted to the International Institute for Sustainable Development's (IISD) Global Subsidies Initiative (GSI) release of their Biofuels – At What Cost? – A review of costs and benefits of EU biofuel policies report. The GRFA disputes the report's critique of biofuel support programs, and the economic and environmental impacts of biofuels on the EU. The GRFA has called the report's findings both misleading and in many instances simply false.

"The GRFA has always been wary of the GSI's work given that past biofuel criticisms have been funded by vested interests like Nestlé SA," stated Bliss Baker, spokesperson for the GRFA. "When the Nestlé Chairman who also sits on the board of Exxon Mobil funds projects criticizing biofuels, you have to question the integrity and motives of the GSI."

"According to the IEA, oil industry subsidies reached over half a trillion dollars ($523 billion) in 2011, up from $412 billion in 2010 and the GSI have decided to criticise support programs for biofuels in Europe. Clearly this organization has a vested interest that is undermining any academic credibility this report might otherwise have," added Mr. Baker.

The references made by the GSI's report to the GHG emission reduction impacts from biofuels production were largely misleading. Recent GHG emission reduction figures from the GRFA and (S&T)2 Consultants Inc. reveal that world ethanol production in 2012 reduced global GHG emissions by over 100 million tonnes. This equates to removing 20 million cars, or all the cars in Mexico from the road.

With respect to the economic impact of biofuels production, the GSI report failed to recognize the tremendous impact that global biofuels production is having on the EU economy. A recent report done by the international environmental and natural resource management consulting firm, Cardno Entrix, detailed the global biofuel industry's contribution to the global economy. Contribution of Biofuels to the Global Economy found that in the EU alone, over 220,000 jobs were supported by the biofuels industry, one hundred thousand more than reported by the GSI. By 2020 the global biofuel industry is forecasted to grow to support 2.2 million jobs, up from supporting 1.4 million jobs in 2010. This includes supporting nearly 490,000 jobs in the EU by 2020.

"It is clear from these numbers that the biofuels industry is a bright spot in the current world and EU economies, contributing billions of dollars to output and creating hundreds of thousands of jobs," said Baker.

"Biofuels are the only viable alternative to crude oil today and despite some reports offer real economic boosts and cleaner air. Instead of wasting time on inaccurate reports, we should be working to craft policies that encourage the development of crude oil alternatives like biofuels for the sake of our economy and environment," concluded Baker.