THE European Parliament has called for the European Union to lower its targets for developing biofuels, which are thought to be driving up food prices.
The environment committee of the European bloc's parliament recommended the EU aim to make renewable sources account for between 8 and 10 per cent of transport power sources, with biofuels to account for just half of this share.
The EU's ambitious energy plan, unveiled last year, says no less than 10 per cent of all the fuel powering vehicles must come from renewable energy by 2020.
An earlier reading of the EU plan had set a target by which this 10 per cent would consist only of biofuels. EU ministers later said the plan had been misread and the 10 per cent encompassed other renewable energy sources.
But the EU's executive branch, the European Commission, maintains that the 10 per cent target will effectively mean 10 per cent biofuels, since other sources, such as electricity and hydrogen fuel, are not yet considered viable means of powering vehicles.
The parliamentarians have also recommended a midway target by which renewables would account for 4 per cent of transport energy sources by 2015, with biofuels to make up only a fraction of this.
NSW is the only Australian state or territory to mandate a minimum level of biofuels in petrol, with plans to boost the level to 10 per cent by the end of 2010 from the current 2 per cent. It will also become the first state or territory to mandate a required level of biodiesel in vehicles, at 2per cent.
Queensland has signalled its intention to introduce a 5 per cent ethanol mandate by 2010. Victoria ruled out mandating biofuels in February following a parliamentary inquiry.
Biofuels had been seen as a relatively carbon-free way to fuel vehicles. In recent months, however, they have been criticised for driving up world food prices, diverting precious crop land and exacerbating deforestation.
The EU plan calls for 20 per cent of all energy needs in the 27-nation bloc to be met from renewable sources by 2020, and for a 20 per cent reduction of greenhouse gases — from 1990 levels — by the same date.
Green groups have criticised some grain-based fuels — especially ethanol, made from corn — as being nearly as CO2-intensive as petrol once the cost of production and transport are taken into account.
