Prior to the Russian invasion, world production of biofuels was at a record high. In the United States, the leading producer of biofuels, 36 percent of total corn production went to biofuels last year, while biodiesel accounted for 40 percent of soybean oil supplies. However, some food companies and policymakers are calling for loosening orders to mix biofuels with petrol and diesel to increase global supplies of cereals and vegetable oils. “Now is not the time [for governments] “Encourage the conversion of food crops into energy through artificial policy incentives or mandatory mixing targets,” said the Washington-based International Food Policy Research Institute. Among them, Russia and Ukraine produce almost a fifth of the world’s corn and more than half of the sunflower oil, but crop exports from the countries are at a fraction of pre-war levels. Hundreds of millions of people are at risk of “hunger and misery” due to food shortages caused by the war, the UN secretary-general warned last week. The total amount of crops used annually for biofuels equals the calorie consumption of 1.9 billion people, according to the data company Gro Intelligence, highlighting the volume of agricultural products that could be diverted from energy use if the food crisis worsens. security.
Do biofuels cause problems in food markets?
Biofuels — corn and sugarcane ethanol and biodiesel from vegetable oils, including soybean oil and palm oil — have been blended into motor fuels since the early 2000s to boost energy supplies and reduce fuel efficiency. Biofuels were partly blamed for the last food crisis in 2007-08. Studies, including by the World Bank and the IMF, suggested that the growth of biofuels contributed to a 20-50 percent increase in the price of corn during the crisis. Their growing use was described as a “crime against humanity” by the then UN rapporteur on food rights.
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But biofuel producers say they have played little role this time around. “Biofuels did not cause this crisis – either price or supply shrinkage,” said James Cogan of Ethanol Europe, an industry lobby group. The high prices are not about demand, but reflect “irregular trading conditions and high energy prices,” he added. Reducing biofuel production “will not substantially alleviate the price crisis.”
Would biofuel limits reduce world hunger?
A 50 percent reduction in cereals used for biofuels in Europe and the United States will offset all lost exports of Ukrainian wheat, corn, barley and rye, according to the World Resources Institute, a Washington think tank. Although crop production has increased along with biofuel production, which means that the amount available for food supplies has not decreased, biofuel use cannot be increased exponentially without harming the environment, activists said. “In a world that is not safe for food, we need to really think critically about these limited resources as we try to feed the world and solve the climate crisis,” said Oliver James, a Princeton University researcher who helped collect the data. of the WRI. Maik Marahrens, of the Brussels-based Transport & Environment campaign team, said that in the EU, around 10,000 tonnes of wheat, equivalent to 15 million loaves of bread, are burned daily as ethanol in cars. The ethanol industry says such comparisons are unfair. Most of the grains used to make fuel are feed wheat, which goes into animal feed instead of ground wheat, which becomes bread, the industry has argued. Biofuel executives said the amount of wheat used for biofuels was negligible – about 2 percent of the total crop, according to the UFOP industry association. “In this context, it is a bit surreal to highlight wheat ethanol even when it comes to discussing the current bread crisis,” said Eric Sievers, investment director at ClonBio, which owns Europe’s largest grain refinery in Hungary. . as well as Ethanol Europe. A Russian rocket in a winter wheat field in Soledar, in the eastern Donetsk region of Ukraine © Gleb Garanich / Reuters
Would it be more harmful to limit biofuels?
Industry executives argue that biofuels create efficiencies that feed animals and, indirectly, humans. Industry is a major feed producer, as the process of converting grains to ethanol creates protein and fat by-products that are fed to chickens, cows and pigs. Citing the impact on the EU alone, Cogan said the limits on biofuel production “would lead to loss of renewable energy sources, loss of energy independence, job losses, loss of agricultural income security, increased imports of fossil fuels, increased emissions and increased emissions.” soy flour [for animal feed] from America “.
Are biofuel policies changing?
In the EU, Belgium and Germany are considering easing biofuel mixing mandates to address food security. The International Energy Agency has cut its forecast for biofuel growth for this year by 20%, predicting that global demand will increase by 5 percent from 2021 to 8.5 billion liters. In the United States, where the cheapest corn-based ethanol is the main biofuel, Washington has sought to curb rising gasoline prices by temporarily maintaining the highest level of mixing, usually reduced in the summer months due to polluting concerns. However, government incentives for biodiesel and declining global exports from Ukraine have increased competition for soybean oil, squeezing supplies for US food groups. “[Soyabean oil suppliers] can not give me one [price] offer because they can not take my business. “There is not enough oil to circulate,” said Ed Cinco, purchasing director at Schwebel’s, a Ohio bakery. While China has warned ethanol growers that it will “strictly control the processing of corn ethanol fuel fuel”, India is pushing for targets to increase mixing quotas. Prices for sugar, the country’s main bioethanol raw material, have risen less than other crops. Although coordinated action on food security has quickly moved to the agenda, there has been little discussion of biofuel limits internationally. Instead, countries that use biofuels need to balance food security and sustainability with energy costs and independence, said Nicolas Denis, a McKinsey partner. Governments must decide “what is sustainable land use, given the different priorities,” he added.
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