Can biofuels benefit both the environment and poor people?

Some estimates predict that global energy use will increase by 71 percent between 2003 and 2030. Much of the demand will come from developing countries. Biofuels are being promoted as an environmentally sound and economically competitive alternative to petroleum that can also boost the incomes of poor farmers and labourers.

The International Food Policy Research Institute (IFPRI) argues that well-managed biofuel programmes can help ease impacts of climate change through reduced greenhouse gas emissions, benefit poor people in developing countries, and provide economically competitive energy in an age of energy insecurity.

As oil prices rise and political instability affects many oil producing countries, countries are keen to ensure secure energy supplies for the future. Alongside fears over climate change, this means many countries have set targets for future biofuel use, increasing its demand. There are fears, however, that increased biofuel production could mean that food production will fall, affecting food security.

Biofuels can be produced from a number of plants, either using crops that may also be used for food or waste from other crops. However, if food crops are sold for biofuel, food prices could increase, also affecting food security.

Biofuel production is labour intensive; in Brazil for example, the ethanol industry employs around one million people. There are a number of ways to help ensure that biofuel production benefits both the environment and rural poor people:

• If waste from food crops is used to produce energy, food continues to be produced but value is added to crops. Small farmers and poor labourers can increase their incomes without food production being reduced.
• Some biofuel crops grow on marginal land unsuited to food crops. These have the potential to make poor waste land economically productive without blocking the use of high value agricultural land for food.
• Food insecurity is caused not only by food being unavailable but by poverty. Increased incomes to poor rural people could therefore increase food security, ensuring they can buy food as needed.

Fears over increased production of biofuels and their effect on food production and the environment are not unfounded. If benefits only reach wealthy people and environmental impacts such as deforestation or pollution from fertilisers are not avoided, biofuels may not achieve their potential for stable energy supplies, alleviating climate change and poverty reduction:

• Improved technology for both producing and processing efficient biofuels needs further research to ensure food and fuel production are complementary.
• International institutions need to share knowledge and technology with developing countries and allow them to trade on an equal basis. Current subsidies raise crop prices in developed countries, making it hard to compete.
• National governments should create well functioning biofuels markets, promote investment in suitable fuel stations and vehicles and regulate land use. They should also support farmers with extension and research for biofuel crops.
• Local institutions should develop and manage biofuel projects aimed at supporting small farmers’ involvement.
• Sustainable energy means not only reducing carbon emissions through efficient biofuel, but also ensuring poor producers are involved and benefit.

Source(s):
‘The Promises and Challenges of Biofuels for the Poor in Developing Countries’ IFPRI: Washington, by Joachim von Braun and R. K. Pachauri, 2006 Full document.
‘Bioenergy and Agriculture Promises and Challenges’, Focus 14, International Food Policy Research Institute, edited by Peter Hazell and R. K. Pachauri, November 2006 (PDF) Full document.
Individual policy briefs examining the potential opportunities and risks of bioenergy for poor people and farmers in developing countries Full document.

Funded by: CGIAR

id21 Research Highlight: 14 August 2007

Further Information:
Joachim von Braun
International food Policy Research Institute
2033 K Street, NW
Washington, DC 20006-1002
USA

Tel: + 1 202 8625600
Fax: +1 202 4674439
Contact the contributor: j.vonbraun@cgiar.org; ifpri@cgiar.org

International Food Policy Research Institute

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'Bioenergy: promises and challenges'

'Biofuels, climate change and GM crops – who is really benefiting?'

'Smallholder palm oil production – moving towards sustainability?'