Biofuels Are Critical to Development of Global Economy
July 9th, 2008
World leaders gathered this week at the G8 Summit in Japan to discuss, among other things, the world food crisis. Despite manufactured hysteria regarding biofuels and their role in the rising price of food, the leaders of these nations did not yield to those who would like to see ethanol’s demise. They clearly understood the need for the global economy to develop, produce and use renewable fuels like ethanol.
In a letter to the leaders of the G8 nations, leaders of the biofuels industry encouraged them to look past the negative arguments:
Usually, these benefits are overlooked by those rushing to criticize biofuels as the main culprit for the food crisis gripping the world today. Excessive rhetoric by a UN special rapporteur has gone so far as to label biofuels a “crime against humanity.” While such highly emotional claims make great headlines, they fail to communicate to the world’s policymakers the complex set of the factors driving world food prices.
This steadfast commitment to our country’s energy future comes at a critical time when biofuels’ critics are becoming more aggressive. The G8 leaders clearly understood that speculation, the falling value of the dollar, rising demand, and, above all, soaring oil prices have put much more pressure on the price of food than has biofuels. Producing $2 corn at $4.50 per barrel diesel is impossible. Ethanol is helping to keep these prices down. In fact, a senior commodity analyst at Merrill Lynch concluded in a recent report that, “On a global scale, biofuels are now the single largest contributor to world oil supply growth. We estimate that retail gasoline prices would be $21/bbl higher, on average, without the incremental biofuel supply.”
By solidifying their pledge to support the current and future development of ethanol, including next-generation cellulosic ethanol technology, the G8 leaders are ensuring a clear path toward a more secure energy future, not only for their countries, but all nations around the world.
This is an important step forward. By encouraging the use of renewable fuels like ethanol, while acknowledging the positive impact biofuels are having on the otherwise skyrocketing oil prices, the G8 leaders are effectively ensuring a cleaner environment and future energy security, two areas that are of vital consequence to everyone.
Matt Hartwig, Communications Director
Permalink |
Comment on this post (1)
By
