EU to Observe Impact of Biofuels on Food

Food crops such as wheat are being increasingly used to make biofuels as Europe and the United States turn to cleaner transport fuel to cut greenhouse gas emissions and their growing dependence on imported oil. But this trend has helped bread and tortilla prices soar around the world.

The EU's 27 nations said in a draft statement they will approve Friday that they needed to assess the environmental and social consequences of the production and consumption of biofuels both within the Union and outside.

There is also a need to rapidly assess possible impacts on agricultural products for food and to take action, if necessary, to address shortcomings, they said.

Development campaigners warn that the biofuel boom may encourage farmers in poorer nations to use their land for more lucrative energy crops instead of producing food.

A UN report warned last year that high commodity prices could last throughout the decade as more maize, wheat, rapeseed and sugar is turned into fuel.

EU leaders will also call for environmental standards for the current wave of biofuels _ such as biodiesel made from palm oil and bioethanol from sugarcane.

Environmentalists say producing some of these biofuels requires a lot of energy _ generating more carbon dioxide overall than they save when burned in car engines. They also worry that high prices for the crops will see virgin rainforest turned over to farmland.

This is the first time that EU nations have tackled criticisms of their goal to replace 10 percent of its transport fuel with biofuels by 2020.

That target depends heavily on the biofuel industry introducing second-generation fuels, such as ethanol made from wood chips or straw. Still in development, these fuels should emit far less CO₂ and cost less because they are based on cheap raw materials instead of valuable food crops such as wheat or corn.

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