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Biofuels are not even vaguely a silver-coloured bullet

By Simon Upton - posted Monday, 3 December 2007


It is here that current arrangements become shambolic. In key OECD countries the thicket of subsidies is so deep that they would never be erected in this way from scratch. But almost 30 years of subsidies has created a mentality and acceptance of hand-outs in the world of agri-business and agri-energy that leads governments to plump for biofuels almost by default.

The road to hell, they say, is paved with good intentions. When it comes to the current rage for biofuels we might add that it is a bandwagon travelling along a road funded by public subsidies.

While this is not a new public policy phenomenon, the fiscal, developmental and environmental stakes are so high that the urgent attention of policy makers and taxpayers is required. Massive amounts of capital investment and huge shifts in land use are underway.

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Understanding the consequences before any further damage is inflicted is the only responsible way forward.

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About the Author

Rt. Hon. Simon Upton is a member of the Global Subsidies Initiative’s High-Level Advisory Group.

Creative Commons LicenseThis work is licensed under a Creative Commons License.

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