Biofuel Boom and the Effect on French Food

In 2007, biofuels reached the targeted incorporation rate of 3.5 percent of total fuel consumption in France. However, growing political concern in France over the perceived link between biofuels negative impact on food prices is resulting in a reorientation of France's biofuel policy priorities.

According to a recent report from the USDA Foreign Agricultural Service, Biofuels resource demands are increasingly blamed in France as the primary cause of rising food prices, with little attention paid to other factors, such as reduced supply following short harvests, high demand from emerging markets, speculation, and high energy prices.

In light of the public and political concern over the environmental and economic benefits of biofuels in the context of high world food prices, the government will likely withdraw its 10 percent incorporation rate target for 2015 and will not introduce any new production incentives.

Nevertheless, the French biofuel industry is advancing, spurred by financial incentives to reach targeted objectives of 7 percent biofuel incorporation by 2010 with production quotas set at 3.18 million MT biodiesel and 1.1 million MT bioethanol.

In 2007, 1.15 million MT of biodiesel and 420,000 MT of bioethanol were consumed in France, representing 3.5 percent of French fuel consumption, in line with national objectives.

Further Reading

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