A new report says that the world’s biofuels market is prepared to grow by an average of 12.3 percent a year between 2007 and 2017.

This post from Biofuels International says that a report by industry research specialists RNCOS shows ethanol and biodiesel production worldwide will grow at 6.04 percent and 5 percent a year respectively between 2008 and 2019:

In the near future, the increase in biofuel production will largely be driven by corn-produced ethanol from Brazil and the US, which pledged to nearly double ethanol production by 2012. The European Community recently announced that biofuel will meet 10% of its transportation fuel needs by 2020.

As second-generation biofuels such as organic waste come online in the next few years, both the cost and the environmental footprint of biofuels will drop. The production of biofuels from waste has a negative carbon footprint relative to sending the waste to landfill, since the methane produced from the decay of organic matter is a more powerful greenhouse gas than carbon dioxide.

The RNCOS report says that while the U.S. and Brazil made up nearly 80 percent of the world’s ethanol production last year, China, India and Southeast Asia are set for enormous growth over the next decade.