Biofuels

and

Food Security

Pavia 23 April 2009

What are Biofuels ?

Biofuels are fossil fuel substitutes that can be made from a range of agricultural crops and other sources of biomass. The two most common current Biofuels are ethanol and biodiesel.

Why Biofuels have become a key issue?

Energy security (increasing oil prices, need for alternative

source of energy)

To decrease greenhouse gas emission

To promote rural development

FOOD

BIOFUELSLIMITED NATURAL RESOURCES

CROPS

INCREASED COMPETITION

A NEW DILEMMA IN FOOD SECURITY

DIMENSIONS OF FOOD SECURITY AND BIOFUELS:

1. AVAILABILITY OF FOOD Vs. BIOFUELS

Production of genetically modified crops (non-edible) will be encouraged, aimed to biofuels industry instead of food consumption.

There will be a decrease of food import capacity, specially in the poorest countries due to increase of prices

Decrease of food aid is expected since cereal stocks will be diverted towards biofuels production

BIOFUELS AND AVAILABILITY OF FOOD

DIMENSIONS OF FOOD SECURITY AND BIOFUELS:

2. ACCESS TO FOOD VS. BIOFUELS

Biofuels production causes increase of food prices due to increasing demand for agricultural products .

Current influence of biofuel on food prices ranges between 3% to 30 %

Future trend: biofuels will push prices 12 – 15 % by 2017 (OECD-FAO)

DIMENSIONS OF FOOD SECURITY AND BIOFUELS:

3. STABILITY OF SUPPLY AND ACCESS TO FOOD VS.BIOFUELS

Food and fuel crops compete for land and water resources, increasing their price.

Increase of the price of land leads towards its concentration. Therefore, small farmers turn to be waged workers and lose their food sovereignty.

Subsidies and tariffs on biofuels affect stability and access to food, and cause distortions in food prices.

DIMENSIONS OF FOOD SECURITY AND BIOFUELS:

4. FOOD UTILIZATION VS. BIOFUELS

Increase in demand of fuel crops may lead to a lower food quality and diversity, threatenning the nutrition of people.

Water availability for human consumption will be threatenned:

- Producing one gallon of corn ethanol requires the consumption of 170 gallons of water.

- Producing one gallon of soybean-based biodiesel requires the consumption of 900 gallons of water.

*www.energytribune.com

Gov. Of developed countries

BIOFUELS

Universities & research institutes

FAO & Int. Organizations

Corporations

Peasants from developing countires

Farmers & consumers from developed countries

MAIN STAKE HOLDERS POSITION REGARDING BIOFUELS

GOVERNMENT POLICIES STIMULATING BIOFUEL PRODUCTION IN THE DEVELOPED COUNTRIES:

Financial incentives

• Tax incentives

• Import quotas and tariffs

• Subsidies

Consumption incentives:

• Requirements of blending Biofuels with fossil fuels are often introduced

EU: 10% of ethanol should be blended with petrol by year 2020

Policies encouraging Research and development in Biofuels

BIOFUELS POLICIES IN DEVELOPING COUNTRIES ( BRAZIL)

Significant experience in the area of biofuels : Ethanol as a

transport fuel

Blending Brazilian sugar cane with petrol to produce fuels

Required percent is 22 – 25% of ethanol to be blended with petrol.

Financial incentives

Temporary subsidies were provided and were abolished in

2002

Nowadays current bioenergy policies are guided by the Federal

Government. Its goal is to ensure competitiveness and social

inclusion.

RISKS OF SUPPROTING POLICIES FOR BIOFUELS:

• Biofuels support policies in OECD countries are costly

• The impact of Biofuels policies on Green House Gas emissions is limited • Developing countries are highly dependent on imports to meet their food requirements

• Higher food prices threatens food security of the world’s poor people.

• Demand on Biofuels is a form of pressure on the natural resources on which poor farmers depend.

OPPORTUNITIES:

• Higher incomes for some farmers in developing countries and better agricultural wages for labor, as long as structural constrains are addressed.

BIOFUELS GENERATIONS:

1. FIRST GENERATION BIOFUEL

Biofuel made from sugar, starchy crops, vegetable oil or animal fat using conventional technology.

The starch from the basic feedstocks is fermented into bioethanol, or the vegetable oil through chemical process to biodiesel.

These feedstocks could instead enter the animal or human food chain.

They don’t seem to be more environment friendly than the fossil fuels.

FIRST GENERATION BIOFUELS PRODUCTION SCHEME

PLANTS

ENZYMESSUGARS Biofuel

sBIOFUELS

Sunlight

BIOFUELS GENERATIONS:

2. SECOND GENERATION BIOFUEL

Second Generation Biofuels come from Woody crops and grasses species

(lignocellulosic)

Advantages vs 1st generation:

Increase quantitative potential for biofuel generation per hectare

Grow on poor, degradated soils where food crop production is not optimal

(Jatropha).

Less effects on commodity markets

2. SECOND GENERATION BIOFUEL

Disadvantages:

More of these species can be invasive and have negative impacts

on water resources, biodiversity and agriculture

At the moment they are still more expensive than fossil fuels

Still under research and development for a significant commercial scale

BIOFUELS GENERATIONS:

3. THIRD GENERATION BIOFUEL

The third generation biofuels come from algae, that are low-input, high-yield feedstock to produce Biofuels

3. THIRD GENERATION BIOFUEL

30 - 100 times more energy productive and effective

The Biomass leftover from oil pressing can be used for animal

feeding and ethanol production

Processing Biofuel from algae can capture large amount of CO2

They are relatively easy to grow, but the algal oil is hard and

expensive to extract

Biofuels present both opportunities and risks. The results would depend on the specific context of the country and the policies adopted.

Developing countries and International organizations have to commit themselves to apply policies aimed at making food security a priority

Poor farmers from the developing countries are unlikely to receive benefits from higher food prices and are the most likely to be negatively affected.

CONCLUSIONS:

CONCLUSIONS:

Biofuels will continue to push up commodity prices, which will have implications for food security and poverty levels in developing countries

Investment in research and development in Second and Third Generation has to be taken in high consideration.

Thanks for your attention!

Mery Dongiovanni

Victoria Petro

Carlos Jacome