Officials from Canadian Renewable Fuels Association, the European Bioethanol Fuel Association, Brazil’s Sugar Cane Industry Association (UNICA), and the US Renewable Fuels Association have written a letter to the leaders of the G8 nations underscoring the critical importance biofuels play in reducing the growing demand for oil and the corresponding escalation in prices around the world.
The letter reads in part, “Were it not for the increasing production of world biofuels producers, oil consumption would expand by 1 million barrels per day. As the leaders of the world’s most industrialized nations, you can imagine what would happen to oil prices in the absence of biofuel production.”
The biofuel industry leaders also cautioned against the unfounded assumptions being made regarding biofuels’ role in rising food prices, noting that stronger commodity prices provide the necessary incentives to spur increased grain production worldwide.
“As is always the case, context is critical. Biofuel production consumes just 3% of world coarse grain supply. With the incentives a strong global grain market provides agricultural producers, increases in efficiency and productivity by farmers the world will advance far more rapidly than they have in the past, plagued by years of neglect…For developing nations, biofuels offer tremendous opportunity for job creation and economic opportunity, as well as an avenue to avoid repeating the fossil fueled mistakes many industrialized nations have made.”
The groups cautioned world leaders against taking any renewable energy resource off the table, particularly one that is already helping to meet the growing demand for liquid motor fuels in many nations.
The letter concludes by pointing out, “If one of the goals of G8 leaders is to help ensure the long-term economic health and energy security, biofuels must be part of your strategy.”