Ryan delays biofuels policy over higher food costs

THE DEPARTMENT of Energy has delayed publication of one of its key policy outlines on renewable energy until the autumn because…

THE DEPARTMENT of Energy has delayed publication of one of its key policy outlines on renewable energy until the autumn because of growing concerns about the impact of biofuels on world food prices.

Minister for Energy Eamon Ryan was due to publish details of the Government’s biofuels obligation for 2009 later this month. His spokeswoman said yesterday it will not be published until September or October.

Citing growing concerns about the harmful effect of first- generation biofuels on the environment and on world poverty, the spokeswoman said: “The delay is due to information coming to light and our fuller understanding of the impact of biofuels on food prices and the developing world.

“The publication of the biofuels obligation will be tied in with negotiations and discussions about biofuels’ targets that are taking place at a European level,” she said.

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Fine Gael’s energy spokesman Simon Coveney contended that the delay in publishing the details of the biofuels obligation was “true to type” for Eamon Ryan.

“It is no secret that the first generation of biofuels is having a more negative than positive effect. Yet, the Minister has not moved on from the policy that was there when he entered Government over a year ago,” said Mr Coveney.

Labour’s spokeswoman Liz McManus said it was quite disturbing that the details of the obligation have been delayed. “It has been a central issue for many months. We have had reports from international bodies and governments which are worried about biofuels and the impact they are having upon world poverty. A statement from Mr Ryan about where the Government stands on biofuels is long overdue,” she said.

The Government set ambitious targets in early 2007 whereby biofuels would represent 5.75 per cent of Ireland’s transport fuel market by the end of 2009.

The compulsory obligation to include a percentage of biofuels in oil and diesel would help Ireland reach the EU biofuels directive target a year in advance of the 2010 deadline, the then minister Noel Dempsey said.

Mr Ryan was to outline details this month on how that target would be achieved and on details for a new obligation for 2010 and beyond.

The spokeswoman said last night the Government remained committed to the target, as well as the 2020 target of a 10 per cent biofuels mix in all transport fuels.

Those far-reaching targets have been the subject of growing doubt in Europe as some EU states have raised concerns about the desirability of promoting first-generation biofuels.

First-generation biofuels – primarily derived from food crops like corn, maize and sugar beet – have been blamed for driving up food prices as crops have been diverted from food production into fuel production, causing acute shortages of food in some developing countries.

The environmental benefits of first-generation biofuels have also been questioned. Environmentalists say almost as much energy is spent producing fuel from the crops as the energy they yield.

Mr Ryan has stated that he supports the European Commission’s proposals that sustainability monitoring be put in place on any bio-fuels bought or sold in the EU.