The Global Problem

However, biofuels have come under increasing scrutiny regarding the degree of their environmental impact. In the USA, studies published by Cornell University and the University of California-Berkley found that in terms of energy output compared with energy input, corn based ethanol required 29% more fossil energy than the fuel produced. In Europe, the concern over destruction of tropical rainforests for palm oil plantations linked directly and indirectly to biodiesel demand has spurred the creation of the Roundtable on Sustainable Palm Oil, which is dedicated to developing a globally acceptable definition of sustainable palm oil and helping implement these practices.

The majority of the feedstock for producing ethanol in the USA still comes from corn, a major food crop. The price of corn hit nearly $4 per bushel during 2006, the highest price seen in the last two decades and considerably higher than the average price of $2.40 seen over that twenty-year-period. This rapid rise has had a corresponding effect on the price of corn based products, as exemplified by the protest in Mexico City in early 2007 over the 400% increase in tortilla prices in a short period of time. Using major food crops for fuel production may not be something governments will support indefinitely.

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