Call to Abandon Biofuel Targets and Subsidies.

In a 37 page report, The Root of the Matter, Policy Exchange says that biofuel targets are responsible for the creation of price mechanisms that encourage biofuel crops to replace natural forests.

HOwever, it adds that this has led to an increase in both food prices and deforestation.

"This misjudged policy should be suspended until second-generation biofuels are tested and shown to provide net emission reductions without directly or indirectly causing deforestation," the report says.

"In the UK the five per cent biofuel target under the Renewable Transport Fuel Obligation (RTFO) at £0.20 per litre will cost the Treasury £550 million annually in foregone revenue.

"The RTFO saves 2.6-3.0 MtCO₂/year, equivalent to only a tenth of the emissions of one UK power station and at a cost of £68-150 per tonne of CO₂.

"A similar investment in preventing deforestation and peatland destruction could result in avoided emissions of 40-200 MtCO₂/year or a 50 times greater amount of avoided emissions.

"In 2005 alone, this would have offset the equivalent of up to 37 per cent of all UK CO₂ emissions.

Further Reading

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You can view the full report by clicking here.

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