OECD Report Blames Biofuel Subsidies for Rising Food Prices

The Organisation for Economic Co-operation and Development (OECD) round table on economic development was held this week, September 11 and 12, 2007, in Paris. Among the topics for discussion were the financial and environmental impacts of government subsidies that support biofuels. A report prepared by the OECD has predicted rising food prices, environmental damage in the form of lost natural ecosystems, and tensions between markets, all for relatively new developments in biotechnology that haven’t been proven and might only reduce greenhouse gas emissions by a predicted 3%, "at most". According to the report, second generation technologies show greater, albeit still limited, potential.

Recommendations by the OECD will be heard by scientists, business representatives and non-governmental organisations in addition to representatives from several governments including the US. The full report in pdf format, and a short news video, can be found on the OECD website.

_Sources:

Andrew Bounds. OECD Slams Biofuels Subsidies for Sparking Food Price Inflation. The Financial Times, Thursday September 13, 2007.

Richard Doornbosch and Ronald Steenblik. Biofuels: Is the Cure Worse than the Disease? OECD Report SG/SD/RT(2007)3.