UK proceeds 'cautiously' with biofuel introduction

The Government will "proceed cautiously" over the introduction of biofuels, after a report found they could be increasing greenhouse gas emissions and contributing to food price rises.

But the Transport Secretary, Ruth Kelly, said the Gallagher review into biofuels, published yesterday, did not recommend a moratorium on the fuels.

Professor Ed Gallagher, chairman of the Renewable Fuels Agency, examined the indirect effects of biofuel production. The review calls for biofuels to be introduced more slowly than planned until controls are in place to prevent higher food prices and land being switched from forests or agriculture to growing the crops used for fuels.

The study warns that current policies may produce more greenhouse gas emissions than savings – if, for example, forests are cleared for crops. Biodiversity would also be reduced. Rising demand for biofuels is contributing to rising food prices, notably oil seeds which could see a spike of 75 per cent by 2020, and increasing poverty.

The review recommends biofuel production should target idle and marginal land, and use second generation biofuels – which use waste parts of plants for energy – to reduce competition with food production.