The President of the European Commission Jose Manuel Barroso
has asked for an investigation into whether the push for biofuels
is to blame for rising food prices.
The Commission seems in the process of shifting away from
its previous unbridled support for the technology. It emerged
last weekend that the Commission may cancel its target of
requiring ten per cent of petrol and diesel to be biofuel
by 2020.
Barroso said he wanted a study on all aspects of the issue:
"The impact on prices, the impact on agriculture, on
development... all aspects." Barroso made the comments
last week following a meeting with the Belgian prime minister.
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Recent weeks have seen riots over food prices in Egypt, Haiti,
Indonesia and Mauritania. The UN's World Food Programme has
said it needs an extra $755m to maintain its core budget against
rising prices. Rice prices have hit record levels this year
and several countries have banned exports - India has renewed
a ban on all exports of non-basmati rice.
A spokesman for the President told EU Observer that the comments
did not mean the ten per cent target for biofuels was being
abandoned. "It is simply for the president to look at
the data on a possible link with food prices."
There have been other signs of division within the Commission
on the issue, one official described the ten per cent target
as "now secondary".
In the UK Whitehall is also reviewing biofuel targets. British
motor fuels are currently required to have 2.5 per cent biofuel
content.
Apart from the impact on food prices biofuels are also criticised
for providing less than claimed reductions in CO2 - much Western
production of biofuel crops is dependent on fertilisers, and
the processing of crops also emits a lot of carbon.