Showing posts with label OECD. Show all posts
Showing posts with label OECD. Show all posts

OECD report finds that lowering energy consumption is better than biofuels for reducing greenhouse gas emissions

    Well, now that was obvious, was it not... How much did this study cost?

    by Michael Smith (Veshengro)

    According to a new report from the Organization for Economic Cooperation and Development (OECD), entitled "Economic Assessment of Biofuel Support Policies", not only is public support of biofuels costly, it also has very little impact on reducing “greenhouse gas” emissions.

    All the tax incentives, blending targets and other public support policies in the European Union, the US, and Canada total $25 billion per year but will ultimately result in less than a 1% reduction in emissions from transport by 2015, according to the OECD report.

    The benefits of biofuels are very often more than overstated

    The OECD said that if Brazil’s ethanol produced from sugar cane cuts greenhouse gas emissions by around 80%, biofuels from feedstocks in the United States, the EU or Canada tend to have a far lower environmental benefit. Biodiesel from vegetable oil cuts greenhouse emissions by around 40-55% and ethanol from corn…generally cuts them by less than 30%.”

    The worst offender in this list, biodiesel from palm oil, according to some estimates actually increases greenhouse gas emissions compared to ordinary diesel by 800%, and in addition possibly contributes to Orangutan extinction in the wild.

    Lowering energy consumption is by far a better solution than biofuels

    In its recommendations, the OECD says that governments should offer more support for second generation biofuel feedstocks that don’t use food crops, but more importantly, policies designed to reduce overall energy consumption should receive more funding.

    A study recently has also shown that instead of lowering and reducing CO2 and other emissions biofuels can actually make matters worse. Therefore, we need to look at new sources and also at old ways of transport. Yes, I did say, OLD ways, and this includes especially the bicycle and the horse and mule.

    From the report’s policy recommendations,

    A priority focus, said the mentioned report, needs to be given to reducing energy consumption. This is especially important in the transport sector where the growth in energy use and related environmental problems is most pronounced. In particular, this includes the gradual move from highly energy intensive modes of transport to less intensive ones, and improvement in fuel efficiency in all transport sectors. Generally the costs of reducing GHG emissions by saving energy are lower than by switching to alternative energy sources, in particular biofuels.

    While this is being said by the OECD the UK government still supports the 10 percent target by 2020 but wants the indirect effects of biofuels to be part of the sustainability criteria, and the UK wants a rigorous review of the target in 2013-2014.

    Why this continuing support of the 10 percent target? One can only assume that jobs and money is at stake here, and votes and promises of investment here and there.

    Essentially, in the report, the OECD is recommending that government embrace the factor that energy efficiency is crucial for combating climate change and for making renewable energy technologies most effective.

    A recent World Bank report estimated that, alongside drought and speculation, biofuels derived from crops such as grains, oil seeds and sugar were responsible for up to three quarters of recent hikes in food prices which have hurt the world's poorest.

    Global demand for agricultural land would soar by 2020 meaning in future all biofuel demand must come from marginal land, including use of hi-tech fuels derived from waste like straw and wood chips instead of food. Other sources could be, as apparently the Brazilians have pioneered, ethanol from grass clippings. Then there also is good old methane, as a gas, which could be cerated in methane digesters.

    We also, as I have already stated, must get away form the overuse, and overuse it indeed is, of the motor car for transportation.

    Why does anyone have to use the car to pop round to the corner shop for the newspaper or that packet of cigarettes? Why do the children have to be taken to school by car, seeing the school is only a block away?

    Yes, I am a cyclist and do not even own a motorcar. I do not even have a driver's license. So, I know that people might think me biased as regards to the car but that is not the case. It is the needless use that I am against.

    I am also against the needless use of other motorized operations when human-powered would do nicely. We must liberate ourselves from the over-reliance on gasoline or diesel powered appliances and vehicles. While there is a case for such appliances and vehicles, etc. at times, there are more often than not occasions where starting up the lawnmower or the car would take longer than doing it in a more old-fashioned way.

    We must reduce our energy consumption, and that on a number of levels. The survival of mankind, to a great degree, depends on this. Do we want food or fuel? We must decide.

    © M Smith (Veshengro), July 2008
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Post Title

OECD report finds that lowering energy consumption is better than biofuels for reducing greenhouse gas emissions


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https://national-grid-news.blogspot.com/2008/07/oecd-report-finds-that-lowering-energy.html


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Biofuel policies in OECD countries costly and ineffective, says report

    NEWS RELEASE

    16/07/2008 - Government support of biofuel production in OECD countries is costly, has a limited impact on reducing greenhouse gases and improving energy security, and has a significant impact on world crop prices, according to a new study of policies to promote greater production and use of biofuel in OECD countries.

    OECD’s Economic Assessment of Biofuel Support Policies says biofuels are currently highly dependent on public funding to be viable. In the US, Canada and the European Union government support for the supply and use of biofuels is expected to rise to around USD 25 billion per year by 2015 from about USD 11 billion in 2006.

    The report estimates that biofuel support costs between USD 960 to USD 1700 per tonne of greenhouse gases (carbon dioxide equivalent) saved.

    Support policies include budgetary measures, either as tax concessions or direct
    financial support for biofuel producers, retailers or users. Blending or use mandates require that biofuels represent a minimum share of the transport fuel market and result in increased fuel costs to consumers due to the higher production costs of biofuels.

    Trade restrictions, mainly in the form of import tariffs, protect the domestic industry from foreign competitors but impose a cost burdon on domestic biofuel users and limit development prospects for alternative suppliers.

    The report calls on governments to refocus policies to encourage lower energy consumption, particularly in the transport sector. It also calls for more open markets in biofuels and feedstocks in order to improve efficiency and lower costs. The report recommends a clear focus on alternative fuels that maximise the reduction of fossil fuel useage and greenhouse gas emissions. Further, research to accelerate development of second generation biofuels that do not require commodity feedstocks is suggested.

    The reduction of greenhouse gas emissions is a primary reason for current biofuel policies but the savings are limited. Ethanol from sugar cane - the main feedstock used in Brazil – reduces greenhouse gas emissions by at least 80 percent compared to fossil fuels. But emission reductions are much smaller from biofuels based on feedstocks used in Europe and North America.

    Biofuels produced from wheat, sugar beet or vegetable oil rarely provide emission savings of more than 30 to 60 percent while savings from corn (maize) based ethanol are generally less than 30 percent. Overall, the continuation of current biofuel support policies would reduce greenhouse gas emissions from transport fuel by no more than 0.8 percent by 2015.

    The impact of current biofuel policies on world crop prices, largely through increased demand for cereals and vegetable oils, is significant but should not be overestimated.

    Current biofuel support measures alone are estimated to increase average wheat prices by about 5 percent, maize by around 7 percent and vegetable oil by about 19 percent over the next 10 years.

    Taking into account the 2007 US Energy Independence and Security Act and the proposed EU Directive for Renewable Energy, 13 percent of world coarse grain production and 20 percent of world vegetable oil production could shift to biofuel production in the next 10 years, up from 8 percent and 9 percent in 2007, respectively.

    OECD’s Economic Assessment of Biofuel Support Policies can be downloaded here. This is a PDF file.

    Source: OECD
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Post Title

Biofuel policies in OECD countries costly and ineffective, says report


Post URL

https://national-grid-news.blogspot.com/2008/07/biofuel-policies-in-oecd-countries.html


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