Global biofuel trade: how uncoordinated biofuel policy fuels resource use and GHG emissions
In recent years, global trade in biofuels has grown dramatically, albeit against a background of highly distorted markets for agricultural goods and for energy, and in a context of weak global governance for environmental public goods. While the development of the biofuels sector has helped generate new economic opportunities, it has also led to some unforeseen economic, social and environmental outcomes, including in the area of greenhouse gas emissions. Policy-makers in various countries are currently exploring how best to reform current policies and targets so as to improve environmental outcomes, while ensuring coherence with broader public policy goals such as the need to reduce poverty, enhance food security and expand access to energy and improved technologies. This paper describes and analyses global intra-industry trade in biofuels arising from environmental legislation that has been developed separately in different markets and jurisdictions, and puts forward proposals and recommendations for addressing some of the environmental impacts resulting from this phenomenon.