The Copenhagen Climate Change Summit, which started this week in Denmark, could be good for biodiesel and ethanol.

Biodiesel Magazine reports that while not everyone agrees exactly on what the political negotiations will bring, an expected deal … if not a full treaty … outlining a carbon pricing or cap-and-trade system that puts a price on carbon will be a boon biofuels:

The combined GHG emissions reduction from global ethanol and biodiesel production of 123.5 million tons represents an average reduction of 57 percent compared to the emissions that would have occurred from the production and use of equal quantities of petroleum fuels, [Global Renewable Fuels Alliance] said. “This is equal to the national GHG emissions of Belgium or Greece, as well as the combined emissions of Monaco, Liechtenstein, Iceland, Latvia, Luxembourg, Slovenia, Estonia, Lithuania and Croatia.”

Because of biofuels companies’ carbon reducing capabilities they might be able to sell credits under a carbon pricing or cap-and-trade system, which of course would boost the economic viability of the biodiesel industry and its counterparts. “This would add to any benefits the biofuels industries would see from increased use and sales,” Baker said.

While it’s not so sure if there will be a concrete agreement, it is expected that most parties will at least agree to keep talking. And everyone is watching to see what the biggest players, the U.S., China and India are going to do.