DEPARTMENT FOR
TRANSPORT News Release (03) issued by The Government News Network on
8 July 2008
Issued on behalf
of Renewable Fuels Agency
The Renewable Fuels Agency's Gallagher review into the
indirect effects of biofuels is released today (7 July). The
review, led by RFA Chair Professor Ed Gallagher, examined the
"indirect effects" of biofuels. Specifically whether
biofuels cause greenhouse gas emissions and harm to biodiversity
by contributing to land-use change and the effect of biofuel on
food prices.
The key conclusions of the Gallagher review are as follows:
1. The introduction of biofuels should be slowed until effective
controls are in place to prevent land use change and higher food prices.
2. There is a future for a sustainable biofuels industry but
creating the policy right framework is challenging and will take time.
3. Current policies, if left unchecked, will reduce biodiversity
and may even cause greenhouse gas emissions rather than savings.
More caution and discrimination are needed in the feedstock used
to produce biofuels.
4. Increasing demand for biofuels contributes to rising prices
for some food commodities, notably oil seeds, that has a
detrimental effect on the poor.
5. Biofuels production must target idle and marginal land, and
the use of wastes and residues. This will avoid indirect land use
change and reduce competition with food.
6. Specific incentives are needed to encourage advanced
technologies that utilise feedstock grown on idle and marginal land
Professor Gallagher said, 'Our review makes clear that the
risks of negative impacts from biofuels are real and significant,
but it also lays out a path for a truly sustainable biofuels
industry in the future. The RFA will move on from this review to
build a new consensus on the use of biofuels, and lead the UK
industry into a sustainable future.'
The review proposes that as part of the path to sustainable
biofuels the rate of increase of the UK's biofuels target
should be reduced to 0.5% per annum. Targets beyond 5% by volume
should only be implemented beyond 2013/14 if biofuels are shown to
be demonstrably sustainable, including avoiding indirect land-use
change. These higher targets should include a specific obligation
on companies to use advanced technologies.
Notes to editors:
The report can be downloaded from http://www.renewablefuelsagency.org/reportsandpublications/reviewoftheindirecteffectsofbiofuels.cfm.
The Renewable Fuels Agency (RFA), a Government Non-Departmental
Public Body (NDPB), is an independent regulator.
It was established on 26 October 2007 with the Renewable
Transport Fuel Obligation (RTFO) Order.
The RTFO applies across the whole of the UK. Refiners, importers
and any others who supply more than 450,000 litres of fossil-based
road transport fuel annually to the UK market are obligated by it.
The initial requirement is for 2.5% of the fuel supplied for road
transport in 2008-9 to be biofuel. The RTFO order proposes that
this should increase by 1.25% a year to 5% in 2010/11.
The Gallagher review proposes that the rate of increase in the
RTFO should be reduced to 0.5% a year, bringing the target to 5%
in 2013/14.
The Gallagher review recommends that to encourage the use of
advanced technologies the EU should impose a specific obligation
of 1-2% for biofuels that are produced from appropriate wastes and
residues, on marginal land or without the need for agricultural
land (e.g. from algae).
The Gallagher review found that, in the medium term, increased
demand for biofuels would potentially have a small but negative
impact on poor people. Shorter term impacts were likely to be more
severe, and would require government intervention.
Professor Ed Gallagher is Chair of the RFA. He was previously the
Chief Executive of the Environment Agency and National Rivers
Authority, as well as the Manufacturing Director of Amersham
International and the Director of Marketing and Product
Development at Black and Decker. He has been the Chair of
Energywatch since 2004, and was Governor and then Chair of
Middlesex University from 1994-2004.