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Europe Daily Bulletin No. 8779
Contents Publication in full By article 40 / 42
GENERAL NEWS / (eu) oecd/energy

Given oil price instability, OECD recommends strategy aimed at biomass

Paris, 06/09/2004 (Agence Europe) - Plant and animal waste may, if governments change their strategies, provide a lasting solution for replacing fossil fuels and providing energy and material. Such is the idea put forward by the Organisation for Economic Cooperation and Development (OECD) in a report published in Paris on 6 September. The document stresses that, instead of proposing financial incentives or subsidies for promoting the use of this kind of organic waste, generally known as "biomass", governments should encourage technological innovation in order to reduce the price gap with oil and gas products. The organisation notes that the recent oil price volatility shows that the cost of energy generated from biomass could become more competitive. The report also denounces subsidies which promote the use of fossil fuels.

According to the report, it would therefore be appropriate to develop long-term strategies tabling on local resources and encouraging constructions and bio-refineries able not only to use grains, oilseeds and sugar but also to recycle various agricultural by-products. Such complexes would be capable of producing both energy and materials derived not only from annual crops but also grass, short rotation trees, cereal straws and other by-products.

The report, entitled "Biomass and Agriculture: sustainability, markets and policies", stresses that a significant shift could take place this century from a fossil fuel to a biomass-based economy. To aid this process, it suggests creating carbon markets which would provide credits to biomass producers for displacing fossil fuels. The report also reveals that: - prices of some niche market bioproducts such as plastics derived from arable crops are already competitive with certain petroleum-based plastics; - around 7% of heat generation and 1% of total electricity in OECD countries is provided by agricultural bioenergy, with developing countries meeting an estimated 25% of total energy demand by biomass, principally in the form of firewood and animal dung; - because bioethanol, produced from sugar and grains, can be used in existing engines with little modification, it is easier to exploit than other alternative transportation fuels such as hydrogen.

The report calls for international standards and codes of practice to be established for biomass products to ensure that greenhouse gas emissions are reduced and environmental benefits are maximised. It states it is therefore necessary to carry out a better assessment of costs and benefits taking into account economic, environmental and social aspects. It adds that clear lines of communication should be established between the suppliers, processors and potential users. Also, public education campaigns about the biomass sector should be developed.

 

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