Brussels, 05/07/2007 (Agence Europe) - A unanimous agreement of principle at the highest international political level was obtained on Thursday, on the first day of the international conference on bio-fuels. The conference was organised in Brussels by the European Commission and focused on the necessity to develop a global market in bio-fuels but in respect of demands relating to food security, security of energy supply, and the fight against global change.
The commissioner for external relations, Benita Ferrero-Waldner, kicked-off the two day conference. A panel of ministers and government representatives from the whole world were brought together with representatives from industry, NGOs and academia to debate the stakes at play, as well as the opportunities and risks linked to production and use of bio-fuels in the world. Five major themes are being tackled: national energy policies and the promotion of bio-fuels; bio-fuels and international trade; R&D in bio-fuels; opportunities and risks to the environment linked to production and use of bio-fuels; and opportunities linked to production of bio-fuels in developing countries. Appealing for the development of bio-fuels worldwide, Ms Ferrero-Waldner explained that this was a “clean and renewable source of energy which had the potential to help countries meet the double challenge of climate warming and energy security”. She underlined the fact that production of this alternative energy should not damage food safety or the environment, given the risks of competition with agricultural food production accompanying un-controlled development of bio-fuels, and pressures on forests and biodiversity.
Ferrero-Waldner insisted that world production of bio-fuels was expected to quadruple in next few years. she pointed out, however, that they should not close their eyes to the problems, “poorly managed production can increase rather than decrease greenhouse gas emissions. We know about the negative effects on soil protection, water management, bio-diversity, air protection and the world's forests. Clearly, production must be compatible with our overall environmental objectives”
Claude Mandil says sustainability requires international standards
After a brief examination of policies for developing bio-fuels in the Union, Argentina, Brazil, China, US, India, Mozambique and Ukraine, the director of the International Energy Agency (IEA), Claude Mandil, the facilitator at two of the first discussion panels summed up the stakes at play perfectly, “Developing bio-fuels will both allow for a reduction on fossil fuel dependency and imports and increase jobs and reduce poverty”. He added that, “this should be sustainable and we should therefore examine what its contribution will be to the reduction of C02 emissions, whether it risks competing with farming for food and what its impact will be with new pollutants…As the different examples showed us, between 5,10 and 20% will constitute the maximum share of fuel consumption in the short and medium term. Bio-fuels are therefore not the panacea”. Mandil highlighted the need to use market mechanisms that are compatible with subsidies even if these often distort competition and promote international convergence in bio-fuels standards. He insisted that, “the question of sustainability involves standards applied everywhere negotiations are required multilaterally”.
Union ready to import bio-fuels to reach its 10% target by 2020
Energy Commissioner, Andris Piebalgs, also insisted on the need to set “sustainability standards” for bio-fuels. He added that, “only bio-fuels that respect these standards will be counted in the 10% target (of bio-fuels in Union fuel consumption up to 2020 that the European Council adopted last March: Ed), and only those that benefit from tax exemptions”. Piebalgs also said that these standards would apply to European production and imports, adding, “the Union should ensure that these standards do not create superfluous barriers to international trade”. His colleague at trade, Peter Mandelson, said that Europe should agree to import a lot of its bio-fuels, “we should certainly not contemplate favouring EU production of bio fuels with a weak carbon performance if we can import cheaper, cleaner bio-fuels”. Drawing on Mandelson's proposal on zero duties for “green” goods and services, the Swedish trade minister, Sten Togfors appealed for reduced or zero rights on bio-fuel imports into the Union, “It simply does not seem consistent to me to make import of ethanol more expensive at a time when we are trying to expand the use”.
José Manuel Barroso confirmed that although they had a potential that would enable it to meet its own demand, the Union would be open to bio-fuel imports on the condition that they met Community standards. Stressing the need to “avoid transferring environmental problems from one sector to another”, the president of the Commission said that the Union should work to implement an international mechanism to support bio-fuel production and use that was sustainable.
Brazilian president Lula says this is an opportunity to reduce gap between rich and poor countries
Invited as the star of the conference, Brazilian president Lula da Silva said that hiss country was currently working on a certification plan for his industry based on strict social and environmental standards. The Brazilian president's speech was considered as the high point of the first day's work. Addressing an already sympathetic auditorium, Lula was keen to call for developing countries to open up their borders to bio-fuel imports from developing countries. He appealed for a global market to be developed, which, “will contribute to reducing the gap between rich and poor countries…Today, the world depends on 20 oil producing countries. Tomorrow, more than 100 countries would be able to produce bio-fuels. This will lead to a better distribution of opportunities for the rest of the world”, he concluded. His head of cabinet, Dilma Rousseff had previously underlined the importance of biofuels as, “an instrument of development and social inclusion”. (eh)