TIM WEBB, INDEPENDENT, UK - Biofuels have also driven up food prices, hitting the world's poor the hardest. According to the International Grain Council, at the end of this financial year the world's grain stocks (corn, wheat and barley) will be the lowest since the 1970s, mainly because of soaring demand from biofuels. Some of these "green" energy sources also use up more energy during the manufacturing and refining process than they save.
Politics - particularly the interests of big agricultural businesses - is starting to dictate the biofuel market. The US has imposed punitive import tariffs on Brazilian-made ethanol - one of the world's most efficient biofuels - and subsidises the export of its domestically made corn-based ethanol, which is one of the least efficient. This subsidy could lead to a trade war between the EU and the US.
The biggest drawback with biofuels is the deforestation that it directly and indirectly causes. How much deforestation takes place is hard to measure, but if new demand emerges - such as from biofuels - more land has to be found from somewhere.
