Europaudvalget 2009-10
EUU Alm.del Bilag 316
Offentligt
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Meals per gallon
the impact of industrial biofuels on people and global hunger
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Contents
Executive summary
Chapter 1: Introduction
Chapter 2: Industrial biofuels – the context
What’s driving the EU industrial biofuel boom?
2
6
8
9
Chapter 3: What’s wrong with industrial biofuels?
Industrial biofuels increase food prices, driving more people into hunger
Industrial biofuels are failing local communities where they are grown
Industrial biofuels are not a solution to climate change
conclusion – the EU response
12
12
19
27
31
Chapter 4: Industrial biofuels to 2020
Governments are increasing biofuel demand
the alarming scale of industrial biofuel land expansion
conclusion
32
32
32
37
Chapter 5: Biofuel use – a suggested way forward
Chapter 6: Conclusion and recommendations
38
41
“I don’t have a
farm, I don’t
have a garden,
because the
only land that
I have has been
destroyed.”
Elisa Alimone Mongue,
mother and farmer,
Mozambique. Her land
was taken by a biofuel
company.
PHOtO: JAMES OAtWAy/PANOS/
ActIONAID
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Acronyms And AbbreviAtions
African, Caribbean and Pacific countries
Carbon dioxide
Common Property Resources
European Commission
Economic Partnership Agreements
European Union
Food and Agriculture Organization
The G5 group of developing countries
(India, Brazil, China, Mexico and
South Africa)
G8
The G8 group of developed countries
(UK, Russia, US, Italy, France, Germany, Japan and Canada)
GHG Greenhouse gases
IFPRI International Food Policy Research Institute
ILUC Indirect land use change
IMF
International Monetary Fund
JRC
Joint Research Centre of the European Commission
NAP
National Action Plans
(shortened version of NREAP)
NREAP National Renewable Energy Action Plans
N
2
O
Nitrous oxides
OECD Organisation for Economic Cooperation
and Development
ODI
Overseas Development Institute
RED
Renewable Energy Directive
UN
United Nations
UNEP United Nations Environment Programme
ACP
CO
2
CPRs
EC
EPA
EU
FAO
G5
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2 meals per gallon
The impact of industrial biofuels on people and global hunger
Executive summary
Industrial biofuels – fuels made on an industrial scale from agricultural crops –
have been put forward as an answer to energy security, climate change and
rural development. ActionAid believes they are unlikely to be the solution to
any of these challenges.
In fact they have been a major cause of the food and hunger crisis, which is
set to get worse.
Industrial biofuels are currently made from maize, wheat, sugar cane and
oil seeds such as palm oil, soy and rapeseed. The rapidly rising demand
for crops for fuel has put them into competition with those grown for food,
driving food prices higher and affecting what and how much people eat in
developing countries. This is a significant issue in a world where a billion
people are already going hungry.
Despite this, in 2008 European Union (EU) member states committed
themselves to obtaining 10% of transport fuels from renewable sources
by 2020. Member states will fill almost all of this commitment through
industrial biofuels, meaning the 10% target is, in effect, a biofuels target.
Consumption of industrial biofuels in the EU will jump four-fold. As much as
two-thirds are likely to be imported, the majority from developing countries.
The 10% target is not the only driver of increased consumption in the EU.
In 2006, it was conservatively estimated that the EU biofuel industry was
supported by financial incentives to the sum of
€4.4
billion. Assuming the
same level of subsidies continues, the industry would be subsidised to the
tune of about
€13.7
billion per annum to meet the 2020 target.
The case against industrial biofuels has been mounting for a number of years.
This is borne out by evidence in this report, collected from the countries in
which ActionAid works. This report focuses on three main broad impacts.
1. implications for food prices and hunger
Biofuels are conservatively estimated to have been responsible for at least
30% of the global food price spike in 2008. It was estimated in 2008 that the
food crisis had already pushed a further 100 million people into poverty and
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3 executive summary
“While many worry about filling their gas tanks, many others
around the world are struggling to fill their stomachs. And it’s
getting more and more difficult every day.”
robert Zoellick, President of the World bank, 2008
driven about 30 million more people into hunger. If all global biofuel targets
are met, it is predicted that food prices could rise by up to an additional 76%
by 2020. An estimated 600 million extra people may be hungry because of
industrial biofuels by this date.
2. Local impacts and hunger
Industrial biofuels are having disastrous local impacts on food security and
land rights in many of the communities where they are grown.
The scale of the current land grab is astonishing. In just five African countries,
1.1 million hectares have been given over to industrial biofuels – an area the
size of Belgium. All of the biofuel produced on this land is for export. EU
companies have already acquired or requested at least five million hectares of
land for industrial biofuels in developing countries – an area greater than the
size of Denmark.
The local impacts range from the displacement of people, rising local food
prices and food scarcity, broken promises by the companies about job
opportunities and lack of consultation and compensation. Some have
described this land grab as the next era of colonialism in poor nations.
3. making climate change and hunger worse
Many industrial biofuels do not have lower greenhouse gas (GHG) emissions
compared to fossil fuels. This is because:
converting forests, peatlands or permanent grasslands to grow biofuel
crops is an important cause of GHGs (direct land use change);
converting existing food crop land to biofuel crops often has a displacement
effect; the original land use is pushed onto land in new areas, such as
forests (indirect land use change). The new land use may have a GHG
emission impact, much the same as with direct land use change;
nitrous oxides (N
2
0) are released by the fertilisers required to grow
industrial biofuels. N
2
0 is 300 times more powerful as a GHG compared
to carbon dioxide.
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4 meals per gallon
The impact of industrial biofuels on people and global hunger
“They actually took the land when it was already tilled… They
haven’t paid us anything... What we want is to get our farms back,
because that is what our livelihood is dependent on... we are dying of
hunger and there is nothing that we have that is actually our own.”
matilde ngoene, mother and farmer, mozambique, november 2009
Industrial biofuels are also not good value for money. In fact, they are the least
cost-effective way of saving GHG emissions compared to other uses of the
feedstock (the crops that go to make biofuel). Industrial biofuels are therefore
a red herring in the fight against climate change, and will compound hunger
and poverty for the poor in the future.
the future – the ALArming scALe of the LAnd grAb
Global biofuel consumption is estimated to jump from about 70 billion litres
in 2008 to 250 billion litres in 2020. For the EU, the increase will be steeper –
from 13 billion litres to about 55 billion litres.
To meet the EU 10% target alone, the total land area directly required to grow
industrial biofuels in developing countries could reach 17.5 million hectares,
well over half the size of Italy. Additional land will also be required in developed
nations, displacing food and animal feed crops onto land in new areas, often
in developing countries.
We are at a turning point. Renewed commercial interest in industrial biofuels
is beginning to emerge now that the price of oil has reached about US$80/
barrel. Either we recognise the problems inherent in industrial biofuels now,
or we open the door to a future for the world’s poor where the hunger and
climate crises continue to grow. To stop this trend, the EU and member
states must:
place a moratorium on the further expansion of industrial biofuel
production and investment;
ensure that member states do not lock-in industrial biofuels
to their 2010 national action plans;
reduce transport and energy consumption;
end targets and financial incentives for industrial biofuels;
support small-scale sustainable biofuels in the EU and abroad.
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5 executive summary
Florence Minj,
Director
of People’s Action for
Development, an ActionAid
partner working with
poor communities in
northeast India.
PHOTO: ATOL LOKE/PANOS/ACTIONAID
A cALL to Action: fLorence minj
Florence Minj is Director of People’s Action for Development, an ActionAid partner working
with poor communities in northeast India. He is part of a growing movement of people and
organisations campaigning against industrial biofuels.
“In the UK they want to go for more biofuels. But they should not. They should
campaign against biofuels. We have seen the reality. The impact will be worst
among the
adavasi
[indigenous] community and marginal farmers.
“Only a global campaign can stop this – by ourselves it is difficult. In
collaboration with other countries we can reduce the impact of
jatropha
[a
biofuel crop] – then more food production can happen. Ultimately, if you
promote biodiesel, it is all for the rich people, not the poor.”
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6 meals per gallon
The impact of industrial biofuels on people and global hunger
1. Introduction
The energy crisis of the 1970s provided the initial
impetus for the search for new energy sources.
Countries had become increasingly dependent
on oil at a time of rising and volatile oil prices. More
recently, oil production is said to have peaked,
and the fight against climate change has become
the environmental and developmental issue of our
time. The scramble for a cleaner and more secure
energy source is on.
Close to the top of the list of alternatives are
industrial biofuels, which, in small quantities,
can be easily and quickly integrated into the
existing transport infrastructure. Only a few
years ago, they were seen by many as an
innovative, environmentally friendly and relatively
simple step in the right direction; a new, ‘green’
fuel simultaneously solving the energy and
climate crises by replacing the ‘dirty’ fossil fuels
of the past.
Others, particularly in developing countries,
saw industrial biofuels as a means of promoting
development, securing an energy supply and
alleviating poverty in rural areas. In Europe, the
EU has pushed a similar argument; that biofuels
would give a much-needed boost to farmers
and rural communities in terms of livelihoods
and new markets after years of low prices for
agricultural crops.
Rich nations jumped on the bandwagon,
setting ambitious targets for increased biofuel
consumption and supporting their industries
with generous financial hand-outs.
After this first flush of enthusiasm, the reality
of industrial biofuels is starting to sink in. The
evidence now shows that industrial biofuels are
having negative impacts on people, farmers
and workers, as well as on hunger, the climate,
biodiversity and on habitats such as forests.
Across the developing world, local communities
are realising that industrial biofuels are not living
up to their promises.
If produced sustainably and for local markets,
biofuels grown on a small scale can help create
energy security, increase local incomes and
even reduce greenhouse gas emissions. But
this isn’t happening. Biofuels, like many cash
crops before them, are following the traditional
large-scale, industrial, monoculture and export
model. In the rush to get industrial biofuels
onto the market, the full impact has not been
recognised. Some have even described the
biofuel land grab as a new era of colonialism for
poorer countries.
If they are so bad, why are so many
governments continuing to endorse them?
Industrial biofuels allow rich countries to avoid
some urgent and difficult decisions, such as
reducing consumption of transport fuels and
energy more generally, and forcing companies
to invest in cleaner and alternative technology.
All in all, liquid industrial biofuels let us continue
our love affair with the internal combustion
engine while providing the illusion of action from
the car and oil industries.
the focus of this report –
industrial biofuels and hunger
ActionAid works with people, communities
and partner organisations across the developing
world to realise their right to food and to
address any factors that undermine or deny it.
Farmers themselves want to build on existing
knowledge and resources to develop sustainable
approaches to local production as a means
towards self reliance and combating hunger.
Today hunger is increasing sharply, especially
in the world’s poorest countries. According to
recent figures from the Food and Agriculture
Organization (FAO), the number of chronically
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7 introduction
“I and the community expected to increase our cash income and
revenues by working on the plantation. Our food is insufficient
because we gave away our land. We have to fight for our rights and
find alternatives to fill the gap in food and livelihoods.”
mamadou bah (alias), male farmer, senegal, october 2009
hungry people has reached just over a billion
compared to 913 million in 2008. One in six
people in the world are now hungry.
1
Yet, only ten
years ago, governments committed themselves
to halve world hunger by 2015 as part of the
Millennium Development Goals (Goal 1).
The scientific evidence is steadily moving
against industrial biofuels and the link between
biofuels and hunger is strong. This report
examines the connections between the two,
particularly from a women’s rights perspective,
and the extent to which the right to food is
being undermined by industrial biofuels. It
will explore whether hunger is increasing as
a result of this additional demand for fuel and
whether this is pushing up food prices. It looks
at whether land grabs by industrial biofuel
companies are having localised impacts, for
example on food security and the displacement
of people. It also examines the link between
greenhouse gas (GHG) emissions from
industrial biofuels and the impact on hunger
from climate change.
rising food Prices: bAn vAn tuAn’s story
“We take a small portion of boiled rice
and seasonal vegetables we collect from
the hills. Now we have learned to live
without meat, oil and other necessary
food as my family believes that they
can never come out of poverty.
“I feel that the price hike has now really
shattered all our hopes and put us in a
difficult situation. We have to borrow,
borrow and borrow…. but, for how long?
Even my brothers will refuse one day
as we have no means to repay loans.”
Ban Van Tuan lives with his wife and two
daughters. The family has been trapped by
global food price rises. Everyone has to skip at
least one meal a day to cut costs. He worries
that his daughters will have to stop going to
school because the family can no longer afford it.
“My family
believes that
they can never
come out
of poverty.”
Ban Van Tuan,
farmer, Vietnam.
PHOTO: ACTIONAID
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8 meals per gallon
The impact of industrial biofuels on people and global hunger
2. Industrial biofuels
– the context
Biofuel is fuel obtained from biological material.
But the term ‘bio’ also implies some sort of
environmental benefit (for example the French
word for organic is
biologique)
and the term has
been hijacked by the biofuels industry to portray
a green image.
The term biofuel, by itself, should only refer to
fuel produced from waste processes such as
landfill off-gassing, recycled vegetable oil or
small scale sustainable production for local use.
Agrofuels are also biofuels but refer to the fact
that the biological material is an agricultural
crop, produced intensively by agribusiness, in
large-scale monoculture plantations and which
compete, directly or indirectly, with food (see
Box 1). These are agrofuels produced on an
industrial scale. The term ‘industrial biofuel’
rather than agrofuel is used in this report.
The main agricultural crops used for industrial
biofuels (ie agrofuels) are:
– vegetable oil seeds – such as palm, soy,
sunflower, rapeseed and jatropha which can be
used to produce biodiesel;
– starches – maize (corn) and wheat – and
sugars are used to make ethanol (ethyl alcohol)
which can be used in petrol.
In small quantities, they are fairly easily blended
with existing fuels with little if any modifications
to existing vehicle engines or transport
infrastructure (currently about 3.3% of EU road
fuel comes from biofuels
2
). Thus they are well
suited for use in transport. They are also used in
box 1: comPetition betWeen food And industriAL biofueLs
Maize and wheat are important food staples
in the developing world. Vegetable oils such
as palm oil are also important food ingredients
and can be used to cook other food.
Many rich-country producers, and particularly
those manufacturing ethanol from maize (corn)
and wheat, argue that their feedstocks (ie the
crops used to make biofuels) do not compete
with food because they are different varieties.
Take maize as an example: some proponents
argue that US ethanol is produced from field
corn (yellow maize) which is used to feed
animals. It is sweetcorn that is consumed by
people. However, about 10% of field corn is
still used in the US food chain and some
exports of field corn are consumed by people,
particularly in exports to the developing world.
It is currently the same in the EU: the wheat
varieties that are likely to be turned into ethanol
are also consumed by people. So contrary to
their arguments, there is a direct and strong
link between crops that are used both for fuel
and food.
There are other ‘competing’ links that are
perhaps more important. Greater demand
for maize or wheat – as a fuel – drives maize
and wheat prices higher, as described in
Chapter 3. This in turn has a direct bearing on
the quantity and quality of food consumed in
developing countries.
The argument is also flawed because of the
issue of land. Much of the land used for wheat
and maize for animal feed and/or ethanol could
also be used to grow food. And turning millions
of hectares of agricultural land over to fuel (for
example in the EU) will often shift the crops
they’ve displaced onto land somewhere else
(for example outside the EU).
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9 chapter 2
Industrial biofuels – the context
“It is a crime against humanity to divert arable land to
the production of crops which are then burned for fuel.”
jean Zeigler, (speaking in 2007) united nations special rapporteur on the right to food 2000-2008
Busiswe Mpulo,
maize farmer in Kwa-Zulu
Natal, South Africa.
PHOTO: JAMES OATWAY/PANOS/ACTIONAID
power/heat units, such as power plants, boilers
and cooking stoves. If industrial biofuels are
produced unsustainably, the same issues will
occur regardless of whether the fuel is used in
transport or in a power station.
as to whether they will ever be commercially
viable.
3
Even if they do get onto the market, this
is unlikely before 2018.
4
The benefits of second generation biofuels are
still disputed. But concerns have been raised
that land to grow them would displace food
crops and drive deforestation to create more
farmland,
5
making climate change worse
(see Chapter 3).
Even more advanced biofuels from algae are
being researched (commonly called third
generation). However, commercial viability
and production of third generation biofuels is
a long way off.
first, second and third generation
industrial biofuels
First generation refers to industrial biofuels that
are produced using conventional technology,
that are currently in commercial production
and compete with food such as maize, palm oil
and rapeseed oil. Jatropha also falls within this
category because although it cannot be eaten,
it uses current technology, is in the early stages
of development and competes with agricultural
– ie food – land.
Second generation industrial biofuels are made
using new technological processes and non-
food crops, and are currently being investigated
for their commercial viability. These include
biofuels from forestry and agricultural by-
products such as stalks from wheat/maize, from
wood waste or specifically grown crops such as
poplars and micanthus. There remain doubts
WhAt’s driving the eu
industriAL biofueL boom?
The EU and member states have already sent
out signals that companies should go out and
invest in industrial biofuels, for example in
new refineries and land acquisitions. Billions
of euros have already been spent – privately
and publicly – on supporting the EU industrial
biofuels industry.
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10 meals per gallon
The impact of industrial biofuels on people and global hunger
In 2006, EU farmers
received
€1.4
billion to
produce biofuels. At
this rate, biofuels
could cost EU
taxpayers up to
€4.2
billion annually
by 2020
The inter-relationship between industrial biofuels
and different sectors and issues – agriculture,
energy, transport, the environment and trade –
means a wide variety of policy instruments are
being used to promote them.
to produce industrial biofuels. Although subsidy
rates are likely to change, given current support
levels and predicted EU production levels, the
10% target could end up costing taxpayers
as much as
€4.2
billion a year by 2020 in
agricultural support (see Table 1).
7
the eu’s 10% target
By far the most important development is
the recently adopted EU Renewable Energy
Directive (RED).
6
ActionAid wholeheartedly
supports the general thrust of this directive –
that by 2020, 20% of all EU energy must come
from renewable sources. However, there is
a sub-element to this directive that will have
the effect of increasing hunger while failing to
meet the EU’s stated aims of reducing GHG
emissions. It covers the transport sector and
says that by the same date, 10% of transport
fuels must also be from renewable sources.
Member states will meet almost all of the 10%
obligation through industrial biofuels, meaning
that it is, in effect, an industrial biofuels target.
tax exemptions
By far the largest element of support to the
EU biofuel industry is exemption from excise
duties. For example, the duty on UK biofuels at
the pump is 20 pence less per litre compared
to conventional fuels although this is due to
end in 2010. From 2009, the duty on low-
sulphur petrol and diesel in the UK was 54.19
pence per litre; for biodiesel and ethanol it was
34.19 pence per litre.
8
In Sweden there are no
energy taxes on biofuels.
9
ActionAid calculates
that in 2006, EU tax exemptions were worth
about
€3
billion. Although excise duties are
likely to change, given current support levels
and predicted EU consumption levels, the 10%
target could end up costing taxpayers as much
as
€9.5
billion in tax exemptions a year by
2020 (see Table 1).
10
European subsidies are very important (as in
the US) because biofuels in developed nations
are, in the main, uneconomic without subsidies.
This is particularly true when the price of oil
falls below US$60-100/barrel depending on
the biofuel and the price of the feedstock
in question.
domestic agricultural subsidies
EU farmers receive subsidies for all crops
they produce, including those that can be
processed into industrial biofuels – sugar beet,
maize, rapeseed oil, soy, sunflowers and wheat.
The farmer will sell to an ethanol or biodiesel
processor so long as the price is better than
could be obtained from a food processor or
grain animal-feed operator. In 2006, ActionAid
calculated that EU farmers received
€1.4
billion
table 1: main eu industrial biofuel subsidies in 2006 and 2020
11
millions
Tax exemptions for producers
Agricultural support
Total subsidy
2006 costs to the eu taxpayer
2,960
1,448
4,408
2020 projected costs to the
eu tax payer
9,506
4,216
13,722
This assumes that payments and exemptions continue at the same level from 2006 to 2020. While the rate of tax exemptions is already
falling in some countries, this is countered in part by increased volumes.
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11 chapter 2
Industrial biofuels – the context
“I don’t have a farm, I don’t have a garden, because the only land that
I have has been destroyed. We are just suffering with hunger, because
even if I go to look for another farm, they will just destroy it again.”
elisa Alimone mongue, mother and farmer, mozambique, november 2009
Elisa Alimone Mongue,
mother and farmer,
Mozambique. Her land
was taken by a biofuel
company.
PHOTO: JAMES OATWAY/PANOS/
ACTIONAID
trade and investment incentives
It is no coincidence that industrial biofuel
companies are focusing overseas investment
opportunities in Africa, parts of Asia and south
and central America. Many of these countries
benefit from preferential trading access back
into the EU. This means biofuel and feedstock
traded into the EU either have lower tariffs
or are exempt from tariffs. These include
African, Caribbean and Pacific countries under
Economic Partnership Agreements (EPAs),
least developed nations under the ‘everything
but arms’ initiative; and 13 developing countries
(Bolivia, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Mongolia,
Nicaragua, Paraguay, Peru, Sri Lanka and
Venezuela) under the General System of
Preference+ scheme.
12, 13
There are additional
benefits for companies as well; some of these
trade deals – for example EPAs – also often
cover inward investment whereby companies’
access to developing countries is made easier;
for example previous restrictions on foreign
land ownerships or leases may be eased or
lifted all together.
This preferential access has also stimulated
a new series of south-south co-operation
agreements. Companies in Brazil for example
have restricted access to the EU for Brazilian
ethanol because of higher tariffs. But since
2007, the Brazilian government and Brazilian
company Empresa Brasileira de Pesquisa
Agricola (Embrapa) have signed a number of
agreements with other developing countries as
a means of facilitating Brazilian co-operation
and investment. Embrapa is the main agent for
investment in Africa; and projects have been
established in Libya, Morocco, Mozambique,
Ghana, Kenya, Tunisia, Benin, Togo and Angola
under its leadership, many of which have
preferential access to the EU.
14
The EU will meet
almost all of the
10% target for
transport fuels from
‘renewables’ through
industrial biofuels
– in effect, making it
a biofuels target
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12 meals per gallon
The impact of industrial biofuels on people and global hunger
3. What’s wrong with
industrial biofuels?
The sheer scale of industrial biofuels – from large-
scale intensive agricultural plantations to the export
of the raw material – is not sustainable. Yet the allure
of apparently easy solutions has led politicians and
corporations to push ahead with industrial biofuels
without heeding the many warnings about their
negative impact, including the following.
Global food prices
Industrial biofuels have contributed to
the food and hunger crisis. Diverting land
and food crops into fuel production has
contributed to rising international food prices.
Local issues such as land, food security and
labour conditions
Local food prices are also increasing.
Industrial biofuel production is encouraging
a land grab and the (sometimes violent)
displacement of people.
Income levels for biofuel plantation workers
are low and labour conditions are poor.
Local environmental impacts are becoming
increasingly evident, from a reduction in soil
quality to the depletion of water resources.
Climate change, habitats and biodiversity
Industrial biofuels are no longer seen as
a solution to climate change; in fact most
biofuels release more GHG emissions
compared to fossil fuels.
There are massive impacts on habitats and
biodiversity. Some biofuels – such as sugar
cane, soy and palm oil – are either directly
grown in tropical forest areas and other
high biodiversity hotspots, or are displacing
other activities such as cattle ranching into
these areas.
Energy security
Industrial biofuels will do little for energy
security – indeed crops have their own
insecurity through droughts and disease.
industriAL biofueLs
increAse food Prices,
driving more PeoPLe
into hunger
Many talk of the food crisis as something that
happened in 2008. While global food prices fell
back in the latter part of 2008, domestic prices
have proved ‘stickier’ and remained resolutely
high. Riots over food shortages no longer hit
the headlines, but for millions of people the food
crisis is still with them.
The food crisis, and skyrocketing demand for
industrial biofuels, are exacerbating the situation
table 2: causes of the 2008 global food price increase
causes of the 2008 global food
price increase
Shifting commodity consumption patterns
Rising oil prices
Climatic events
Decline of the US dollar
Speculation
Biofuels
study by don mitchell
(see footnote)
15
Little impact
10%
Little impact
15%
Little impact
75%
Purdue university study
16
An impact but mainly due to oil demand
from China
Significant impact because linked with biofuels
and costs of food production
No in the short-term
Significant impact
Inconclusive
Significant impact and strong links with
rising oil prices
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13 chapter 3
What’s wrong with industrial biofuels?
“No one will buy jatropha. People said if you have a plantation then
surely you have a good market, but we didn’t see such good market.
When I got the message that there was no market, I got discouraged.
I was very upset. I felt very bad. I expected profit. I threw it [the
seeds] away.”
raju sona, farmer, india, november 2009
In 2008 the food
crisis pushed 100
million people newly
into poverty.
Biofuels alone
pushed 30 million
people into hunger
for poor people and undermining their right to
food. The World Bank estimated in 2008 that
the crisis had already pushed a further 100
million people into poverty. ActionAid estimated
at the time that 30 million more people were
now hungry as a result of biofuels.
The causes of the rise in food prices are clearly
complex, but a number of authoritative sources
have confirmed that industrial biofuels were one
of the main causes of the food price hike.
The study by Purdue University for Farm
Foundation is in fact an evaluation of 25 different
surveys. It essentially supports Donald Mitchell’s
(and other institutions’) analysis without
attributing statistical importance – that biofuels,
linked to rising oil prices, are a major contributor
to rising food prices. Oil prices are predicted to
be higher in the medium to longer term as we
come out of the global recession. So we will see
a dramatic increase in food prices and hunger.
And it is the poor and poor countries that will
suffer most. Many low income developing
countries are net food (and fuel) importers; most
households in developing countries are net food
buyers; and the poorer you are, the greater the
percentage of your income spent on food (in
some households it is as much as 80%).
The interaction between industrial biofuels,
higher food prices and hunger arises because:
fuel, energy and food prices are now
increasingly linked;
at a global level, a relatively small change in
agricultural supply or demand has a large
and disproportionate effect on food prices,
and so the increased demand for biofuels
has driven food prices higher;
higher global food prices have been
transmitted through to the national level;
higher national food prices have filtered
through to the local level where the majority
of households are net buyers;
this has been compounded by food growers
changing over to biofuels in anticipation of
higher returns, and farmers leaving their own
land uncultivated in order to work on biofuel
plantations.
The FAO estimates that in 2008/9, 125 million
tonnes of cereals were diverted into biofuel
production. In this year, as shown in Table 3,
at a time when hunger was escalating and
riots over food shortages were common, more
cereal production was diverted into animal feed
and industrial uses (1,107 million tonnes) than
feeding people (1,013 million tonnes). 2008/9
was a record global grain harvest, up 7.3 %
from the previous year (which was also at a
record level).
17
The cereal market is geared more
towards feeding animals and industrial uses
than feeding people (see Box 1, page 8).
Around 30% of maize production in the US is
Raju Sona,
farmer,
northeast India. He gave up
food production to grow
jatropha which failed to give
him an income. His family is
much happier now that he
is growing food again.
PHOTO: ATOL LOKE/PANOS/ACTIONAID
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The impact of industrial biofuels on people and global hunger
Around 30% of
maize production
in the US is now
being converted
into ethanol
table 3: World cereals production and ‘end use’
million tonnes
2007/08
2008/09
% change
change
07/08–08/09
Total production
Total utilisation of which*
To food
To animal feed
To other uses
2,132
2,120
1,013
748
359
2,287
2,202
1,029
773
401
+1.3%
-
+1.5%
+3.3%
+11.7%
155 million tonnes
-
+16 million tonnes
+25 million tonnes
+42 million tonnes
*Utilisation is a combination of production and the use of stocks from the previous year (stocks of cereals went up from 2007/08 to 2008/09
by about 80 million tonnes)
now being converted into ethanol.
18
Putting
the energy markets into competition with
food markets will inevitably result in higher
food prices.
19
Industrial biofuels are placing a
massive and additional demand on agricultural
production. Not only will extra agricultural supply
simply not respond quickly enough, but there are
well grounded fears that there will not be enough
land or resources such as water to meet future
demand for food, let alone biofuels, as shown in
Chapter 4. All this is driving prices up.
The increase in prices is not just confined to
prices of maize, wheat, vegetable oils and
sugar – ie biofuel feedstocks themselves.
Close food substitutes are also affected. For
example, as prices of maize rise, consumers
will look to purchase cheaper substitutes.
This extra demand in turn increases the price
of substitutes. It also has knock on effects
on animal feed prices which in turn will affect
the livestock and poultry industries. The link
between food and fuel prices is also evident in
that energy is required to make fertilisers and
for use in machinery and transport, thereby
increasing costs of farming.
rising prices and hunger at a
global level
From 2006 to the middle of 2008, the global
prices of nearly all major food and feed
commodities skyrocketed. Overall, world food
prices increased by 75%, yet the price for staple
food grains (such as wheat, rice and maize)
increased by a staggering 126% over the same
period.
20
For the 82 low income food deficit
countries, import bills (in comparison to export
revenues) went up. Each 10% increase in the
prices of cereals (including rice) adds nearly
US$4.5 billion to the aggregate cereals import
table 4: 2008 food price rises due to industrial biofuels
22, 23, 24
Agency/institution
IMF
IFPRI
FAO
OECD
Donald Mitchell
date
April 2008
May 2008
June 2008
May 2008
April 2008
% rise in food prices due to
biofuels
20-30%
30%
56-59%
Almost 60%
75%
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15 chapter 3
What’s wrong with industrial biofuels?
“Rapidly growing demand for biofuel feedstocks has contributed to
higher food prices, which pose an immediate threat to the food
security of poor net food buyers in both urban and rural areas.”
food and Agriculture organization, 2008
Between 2006-08,
global food prices
rose by 75%. The
costs of staple
grains that poor
people rely on
rose even higher,
by 126%
cost of those developing nations that are
net importers.
21
There has been some controversy regarding the
extent that industrial biofuels were responsible
for the rise in global prices in 2008 (see Table
4). Those with a vested interest, such as the US
and the EU, have tended to play down the role of
biofuels. Independent observers have concluded
that industrial biofuels have played a more
significant role, probably in the range 30-75%.
The exact figure probably lies somewhere within
this range. Assuming the lower figure of 30%,
ActionAid conservatively calculated in 2008
that 30 million more people are now hungry
as a result of industrial biofuels and a further
260 million are at risk of hunger. ActionAid’s
figure was vindicated last year when the FAO
confirmed that between 2008 and 2009, a
staggering 100 million more people were
pushed into hunger within a year.
According to the Organisation for Economic
Cooperation and Development (OECD), a third
of the rise in agriculture prices foreseen for
the next ten years (2008-2017) will be caused
by increased demand for industrial biofuels.
25
box 2: the eu 10% target and hunger
The European Commission has forecast that
its own target would increase world cereal
prices by 3 to 6%.
29
Following the same
argument as outlined below – that the number
of hungry people could increase by 16 million
for every 1% price rise – the EU could be
responsible for an extra 50-100 million people
going hungry by 2020.
30
Many other studies have attempted to project
future price rises due to biofuels if consumption
targets are met. The Overseas Development
Institute (ODI) has summarised 11 of these
studies and for almost every product studied,
the impact on food prices was up, sometimes
significantly.
The ODI describes the International Food
Policy Research Institute (IFPRI) model as
‘typical’ of these studies; that by 2020 prices
would rise between 21 and 30% for wheat,
29-41% for maize and 45-76% for oilseeds
(see Figure 1).
26
This is in keeping with other
estimates. But the lower end of the IFPRI
estimates is based on the assumption that
second generation will be available. ActionAid
figure 1: changes in commodity prices in response to global biofuel
expansion in 2020
100
90
% difference from baseline
80
70
60
50
40
30
20
10
0
First generation
Second generation
Wheat
Maize
Wheat
Maize
Oilseeds
Sugar
cane
Oilseeds
Sugar
cane
Maize
Oilseeds
Sugar cane
Wheat
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16 meals per gallon
The impact of industrial biofuels on people and global hunger
By November 2009,
maize prices in
Zambia, Kenya,
Malawi and
Mozambique were
still around 60%
higher than at
the start of 2007;
in Tanzania it
was 150%
0.6
believes that this is unlikely to be the case; and
that IFPRI’s price rises for first generation are
likely to be more realistic.
The IFPRI model shows that the impact on food
supply and malnutrition, particularly in Africa,
could be alarming. It is also estimated that
the number of hungry may rise by 16 million
for every 1% rise in food prices.
27
Assuming
a conservative rise of 35-40% by 2020, this
suggests that some 600 million more people
may be hungry within 10 years because of
industrial biofuel expansion. This is similar to
another finding – that a 20% increase in food
prices in 2025 would increase the number of
undernourished people by 440 million.
28
figure 2: maize prices in east and southern Africa between
2007 and 2009
31
0.5
0.4
US$ per kilogramme
0.3
0.2
0.1
01/07
02/07
03/07
04/07
05/07
06/07
07/07
08/07
09/07
10/07
11/07
12/07
01/08
02/08
03/08
04/08
05/08
06/08
07/08
08/08
09/08
10/08
11/08
12/08
01/09
02/09
03/09
04/09
05/09
06/09
07/09
08/09
09/09
10/09
11/09
1. Kenya, Nairobi, maize, wholesale, US$ per kg
2. Malawi, Lilongwe, maize, retail, US$ per kg
3. Mozambique, Maputo, maize (white), retail, US$ per kg
4. South Africa, Randfontein, maize (white), wholesale, US$ per kg
5. United Republic of Tanzania, Dar es Salaam, maize, wholesale, US$ per kg
6. Zambia, National Average, white roller maize meal, retail, US$ per kg
7. International prices, USA: Gulf, maize (US No. 2, yellow), export, US$ per kg
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17 chapter 3
What’s wrong with industrial biofuels?
“We deeply regret we agreed on letting [the biofuel company]
operate on our land.”
rashidi omary goboreni, farmer, tanzania, september 2009
rising prices and hunger at a
national level
Whether poorer nations and poorer people suffer
from price rises depends not just on whether
countries are net food importers but also
whether households are net buyers or sellers.
Figure 2 shows that global maize prices peaked
in the summer of 2008 and fell back to levels
experienced at the start of 2007 as the world
went into recession and oil prices fell. Yet for
east and southern Africa, the global increases
in maize prices from mid 2007 onwards was
transmitted almost immediately into higher
domestic prices, both wholesale and retail.
However, while global prices fell, domestic
prices have proved ‘stickier’. Prices in much
of east and southern Africa continued to rise.
By November 2009, maize prices in Zambia,
Kenya, Malawi and Mozambique were still
around 60% higher than at the start of 2007; in
Tanzania the figure was 150%. The magnitude
of the price rises, and subsequent volatility, is
also alarming although sharp price movements
are to be expected pre and post harvest time.
The only country in the survey that appears to
buck this trend is South Africa.
Domestic prices have remained higher in part
due to more localised issues such as climatic
events (droughts), currency fluctuations and
civil strife. But high prices have another effect. In
developing countries, farmers are increasingly
switching away from food crops into other
cash crops as the price for the latter rises. For
example, by mid 2009, global sugar prices
had reached a 28-year-high on the back of
crop failures in India and increased demand for
ethanol. Farmers in Swaziland are cultivating
sugar cane at the expense of staple food.
32
But at the same time, the country is suffering
massive food insecurity because of exceptional
shortfalls in food production and supplies.
33
The massive rise in maize prices from late
2006 had an immediate effect on farmers and
consumers in central America. The region
is closely linked with the US market. In 2007
tortilla prices almost doubled and there was a
public outcry – resulting in protests and riots
– among the tens of millions of poor Mexicans
who rely on tortilla as their main food.
34
The
maize crisis spilled over into other countries
in central America. Again, maize prices hit the
poorest hardest as tortilla prices rose. Costs in
the livestock industries, where maize is used as
feed, rose by 15-20% in 2007 alone.
35
Small wonder that the food crisis sparked
riots across the globe from the Philippines,
Bangladesh and India; to Egypt and Senegal;
and to Mexico, Haiti and El Salvador. In 2008,
food price inflation in Latin America and the
Caribbean was running at 20%
36
while in parts
of Africa – Zambia, Kenya and Ethiopia – it
ranged from 16 to 47%.
37
impacts on households, women
and the poor
The majority of households in urban and rural
areas are net buyers of food and consequently
they are the most vulnerable to rises in food
prices. In a World Bank survey of seven
countries (Bolivia, Ethiopia, Bangladesh,
Zambia, Madagascar, Vietnam and Cambodia),
only in Asia are there a greater number of net
selling households; but even here it was only
just over 50%. In both Bolivia and Bangladesh,
about 85% of households are net buyers; in
Zambia it is 65%; and in Madagascar and
Ethiopia it is about 52%.
38
Another study found
“empirical evidence from a number of sub-
Saharan countries…[that] in no case finds a
majority of farmers or rural households to be net
food sellers”.
39
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18 meals per gallon
The impact of industrial biofuels on people and global hunger
Purchasing of food with
5,000 Kwacha (US$1) in
Lusaka, Zambia in
February 2008 (left) and
February 2009 (right).
PHOTO: MWILA MULUMBI
Not only are most households in developing
countries net buyers but poor families spend
a greater percentage of their income on food,
as much as 80% in some cases.
40
Of the
households that are net sellers in developing
countries – which we have established are the
minority – most tend to be farmers that are better
off, and on farms with larger areas of land. Poorer,
small-scale farmers are invariably net buyers and
are most likely to be negatively affected.
41
In a survey of seven different countries, the
FAO estimated the welfare gains or losses
from a 10% increase in the price of the main
food staple. In urban areas, every household
will experience a net welfare loss (ie they will
be worse off). In rural areas, it is the poorest
quintiles that are the biggest losers (with the
exception of Ghana and Mozambique which
experienced small welfare gains).
And the impacts fall heavily on women who are
responsible for 60-80% of food production in
developing countries yet own less than 10% of
the land.
42
Land being turned over to industrial
biofuels is also particularly important to women.
They may not own the land but it has often been
‘allocated’ to women by their husbands so they
can grow crops, collect nuts, graze animals or
collect firewood. This has knock-on impacts for
food security and hunger. As food prices rise,
women reduce their nutritional intake sharply
so as to feed the rest of the family.
43
As UNICEF
says:
“A growing body of evidence... suggests
that when resources are scarce women generally
prioritise the nutrition of family members above
other personal and household issues.”
44
This is well illustrated in Indonesia. When
prices rose, mothers in poor families invariably
responded by reducing their food intake in
order to feed their children. In the same FAO
study, even though female-headed households
were not over-represented among the poor in
the seven countries, they invariably suffered
either greater welfare losses or smaller welfare
gains. The FAO concluded that female-headed
households fare worse when the price of staple
crops rise because they spend a far greater
share of their income on food. In rural contexts,
women have less access to land and participate
far less in agricultural income-generating
activities, and therefore do not benefit from crop
price rises.
45
What many of these studies do not consider
is whether farmers in developing countries
produce more when crop prices rise. However,
ActionAid’s own surveys and analysis confirm
that smallholder farmers in many countries,
who produce the bulk of food, have not been
able to respond to higher prices by bringing
more food into production. Much of west
and east Africa, as well as south and central
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19 chapter 3
What’s wrong with industrial biofuels?
“Filling the 25-gallon tank of an SUV with pure ethanol requires over
450 pounds of corn – which contains enough calories to feed one
person for a year.”
Professors ford runge and benjamin senauer, 2007
EU companies have
already acquired or
requested at least
five million hectares
of land for
industrial biofuels
in developing
countries
America, are forecast to experience cereal
production declines in 2009.
46
But there are
clearly many factors behind this production
shortfall.
industriAL biofueLs Are
fAiLing LocAL communities
Where they Are groWn
To meet the demand for biofuels in developed
nations, significant land area is already being
acquired in developing countries. That puts land
and land rights at the centre of the industrial
biofuels debate:
Land is being taken out of food production
and replaced with fuel production.
Less land for food will have a direct impact
on local food prices and hunger.
Land rights are being violated as investors
seek new areas for production.
Land use issues will also have a major
impact on whether industrial biofuels
contribute to fighting climate change
(see next section).
Labour conditions and incomes for
plantation workers are often poor.
rural hunger and poverty. But access and
tenure to land is often poorly protected,
particularly for women who produce 60-80%
of food in developing countries. Compared to
men, they own very little land. Instead, women
often use communal land to grow crops, collect
nuts, graze animals or collect firewood. But
this very same land is being targeted for biofuel
expansion.
scale of the current land grab
ActionAid is campaigning against industrial
biofuels in a number of countries – from
Guatemala and Ghana to India. What we are
witnessing is a land grab – the displacement of
vulnerable communities, often without any prior
community consultation or decision making.
The scale of the land grab is astonishing. In a
study of just five countries – Ethiopia, Ghana,
Madagascar, Mali and Sudan – some 2.5 million
hectares have been given over to food and fuel
with 90% of it under private (mainly foreign)
investment. Of the 2.5 million hectares, 1.1
million is for industrial biofuels (an area the size
of Belgium). Incredibly, all the biofuel production
would be exported.
47
At a global level, ActionAid has surveyed
existing and potential EU company biofuel
land investments in developing countries.
ActionAid calculates that EU companies have
already secured or requested at least five
million hectares of land for industrial biofuels
in developing countries. This is equivalent to
an area greater than the size of Denmark. It
will be mainly for growing jatropha, but also
sugar cane and palm oil where it is known
that these are being used as a biofuel source.
Because crops like sugar cane and palm oil
can be used in a variety of ways, it is difficult
to get an exact figure. There is also a scarcity
of data on some projects. So, though five
grabbing land – the ‘new gold’
Land grabs for commodities have gone on for
centuries. Rich nations have a long history of
plundering the resource base of developing
nations – from precious metals, minerals, oil
and other fossil fuels to forest products and
cash crops. But the recent rise in both food
and fuel prices has turned land itself – a finite
and increasingly pressured resource – into
a valuable commodity which investors and
speculators are keen to exploit. Some have
described the industrial biofuel scramble as the
latest chapter in the long-running colonial land
grab in poorer countries.
Access to land and other resources is a
fundamental precondition in the fight against
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20 meals per gallon
The impact of industrial biofuels on people and global hunger
“Our livelihood was dependent on the farms – and they’ve taken
the farms.”
julio ngoene, village chief and farmer, mozambique, november 2009
Julio Ngoene,
village chief
and farmer, Mozambique.
PHOTO JAMES OATWAY/PANOS/ACTIONAID
LAnd grAb – juLio ngoene’s story
Julio Ngoene is fighting to save not only his
community’s farmland, but also its way of life.
Julio is the village chief for approximately 100
households, totalling over 1,000 people. Their
agricultural livelihood is critical to them.
However, a biofuel company is setting up a
project near his village and has taken over
– without permission – 85% of the village
farmland and destroyed its crops.
At the onset of the project, the company
promised to resettle the village but, two
years later, Julio and the villagers have
heard nothing more. Despite the lack of
permission for the farmland that was taken,
no-one in the community has received any
compensation.
million hectares is a crude estimate, it is also
likely to be a conservative one.
Over the past 18 months, ActionAid has been
looking into the local impacts of this land grab in
the countries where we work (and this research
is continuing). The following sections reveal
some of our findings. Almost without exception,
the respondents had negative experiences of
biofuels in their areas.
the displacement of people and
local communities
Even where consent to use land for biofuels
has been sought and given (after often cursory
consultation), it is little more than a subtle form
of land dispossession, particularly of women.
Communities are invariably fed the positives
of industrial biofuels (high yields, prices and
prompt returns), and offered compensation
and promises by the company in the form of
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21 chapter 3
What’s wrong with industrial biofuels?
60 million
indigenous people
are globally at risk
of displacement
because of
industrial biofuels
jobs, incomes, schools etc. But some of these
may never materialise. At the same time, local
authorities often allocate land to companies
without any consultation with affected
communities at all.
In Colombia, NGOs have documented land
rights’ violations due to the massive expansion
of palm oil and sugar cane plantations.
48
In
Indonesia, in the village of Aruk, villages and
people have come into direct confrontation
with palm oil plantations. Twenty-five plots were
cleared without their permission. One villager
lost his 10-acre plot.
“I went to my land one
morning, and found it had been cleared. All my
rubber trees, my plants had been destroyed…
Now I have to work as a builder in Malaysia, so
I can feed my three children.”
His cousin said:
“This
is our ancestors’ land which we have had
for years, and now we have lost it.”
49
The Chair
of the UN Forum on Indigenous Issues has
estimated that 60 million indigenous people are
globally at risk of displacement because
of industrial biofuels.
50
The situation is similar in Tanzania. In one case
where ActionAid has conducted interviews, 175
villagers have been displaced. Clearly, there
is anger about what is happening, not just in
Tanzania but throughout Africa.
“We deeply regret we agreed on letting
[the biofuel company] operate on our
land. Now we think the employment and
the possibility to use their tractors was
only their strategy to get the agreement
… We realised we did not know if we had
agreed on selling our land or leasing it
for 50 or 99 years. A neighbour told us
he had leased his land for 99 years and
we got worried. What is hiding behind
the 6,000 schilling [about
€3
as an
initial payment], we wondered? If we
do not get employed then how will we
make our living? Without land we will
not be able to farm and our children will
have nowhere to settle down when they
grow up. I’ve heard stories about other
villages who have leased their land and
the villagers there are now not even
allowed to pass their land. If they pick
up firewood, someone from the company
will tell them to put it back.”
Rashidi
Omary Goboreni, farmer, Tanzania,
September 2009
“Land is generally given to wealthy
people at the expense of local people
whose ancestors have used the land
for generations. There will never be
development if they give land to the rich
and ignore poor people. If this trend
continues, there will be no more small-
scale farmers in this area. I believe it
is my land and I do not want to lose it. I
want my children to stay and inherit the
land and not move away.”
Gora Thiam,
farmer and village chief, Senegal,
October 2009
food security is being compromised
because land for food is being used
for fuel
In parts of Africa, some companies have
secured land that was used for growing crops
for the production of jatropha (see Box 3) and
sugar cane.
“I and the community expected to
increase our cash income and revenues
by working on the plantation. Our food
is insufficient because we gave away our
land. We have to fight for our rights and
find alternatives to fill the gap in food
and livelihoods.”
Mamadou Bah (alias),
farmer, Senegal, October 2009
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22 meals per gallon
The impact of industrial biofuels on people and global hunger
box 3: mArginAL LAnds And jAtroPhA
Jatropha has been sold as a miracle biofuel. Native
to central America, jatropha produces seeds that
contain oil, which can be used as biofuel.
One of its supposed advantages is that it can
be grown on ‘so called’ marginal land, and not
compete with food. Jatropha, it is claimed, can
also be grown in semi-arid areas, on poor soils
with limited water use. It will therefore provide
livelihoods and promote rural development.
1.8-2 tons per hectare per year, and even
this has yet to be achieved.
53
These are some of the other reactions to
jatropha from ActionAid’s field visits:
“Until now I haven’t got any seeds
from this jatropha. I feel bad. Now it is
almost four years and I am not getting
any income. There is no improvement.”
Wanjang Agitok Sangma, India
“I don’t think the jatropha will be
profitable.”
Matilda Sangma, India
“I don’t have any interest in jatropha.
It’s a loss to us, there are no benefits.”
Mamadou Bah (alias) Senegal
“We
do not want jatropha here.”
Sophie Mbodj, Senegal
Most of the evidence to date suggests that this
is too good to be true. For a start, companies
would like the crop to be grown on fertile land
with the requisite amounts of water to bring
higher yields and returns. But this would put
it into direct competition with land that could,
and often is, used to grow food. In Tanzania,
jatropha is being targeted at areas with good
rainfall and fertile soils. In Sahel areas of Senegal, The concept of marginal lands has now become
jatropha will only survive with irrigation; it’s a
synonymous with other terms – for example
similar story in Swaziland, which is suffering
land that is idle, exhausted and/or degraded.
from persistent drought.
51
The whole idea that jatropha (or any industrial
biofuel crop) should be targeted at these lands
is an insult to those that ActionAid works with
Jatropha is also being sold on the basis that
in developing countries. Communities would
the crop will offer employment and livelihoods.
dispute whether most, if any land would fall into
But the ODI concludes that “as the mainstay of
these categories, even if definitions could be
people’s livelihoods, [jatropha] looks distinctly
52
agreed. Communities use this land and massive
marginal.” This is because:
numbers would be displaced.
• employment is often sporadic – it is labour
intensive during planting (year 1) and then
A jatropha seed
very little until harvesting (years 4+);
• in India, where jatropha is becoming well
established, the promise of high yields has
never been proven regardless of whether
they are gown on fertile or poor soils. The
initial forecast was that it would only be
cost-competitive if yields reached 3-5 tons
of seeds per hectare per year. Private firms
have now had to scale down projections to
PHOTO: ACTIONAID
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23 chapter 3
What’s wrong with industrial biofuels?
“What we want is to get our farms back, because that is what our
livelihood is dependent on... we are dying of hunger and there is
nothing that we have that is actually our own.”
matilde ngoene, mother and farmer, mozambique, november 2009
“I don’t have a farm, I don’t have a
garden, because the only land that I
have has been destroyed … We grew
maize, groundnuts, beans, pumpkins,
watermelons… I have given up: I
am staying helplessly, because we
don’t have anything to eat. We are
just suffering with hunger, because
even if I go to look for another farm,
they will just destroy it again.”
Elisa
Alimone Mongue, mother and farmer,
Mozambique, November 2009
“I clearly refused all the initial
propositions that I received for starting
to grow jatropha because I do not want
us to become farm workers at the
mercy of a few companies. I prefer to
continue to increase my production
of rice and corn. Imagine what would
happen if the world demand falls and
the price of agro-fuels collapses, after
we have concentrated all our efforts
on it? Our situation would be even
worse than now, and there would be
famine. We can’t eat jatropha, but
we can eat rice.”Abdou
Tall, farmer,
Senegal, 2008
“Farmers that now work on the
plantations have neglected their
own land and crops. It was hard last
year because most farmers went to
the plantation to work. However, the
company could not employ them. It
was the middle of the rainy season,
so too late to go back and plant crops.
Food prices are generally the same in
the market. But there are shortages of
millet and less income. Even this year,
there are farmers who haven’t grown
crops.”
Khady Diop (alias), mother,
Senegal, October 2009
One of the supposed advantages of jatropha is
that it doesn’t compete with food and can be
grown in semi-arid areas. ActionAid’s findings
on the ground reveal a very different picture.
In Tanzania, jatropha is being targeted by
companies, not at the semi-arid parts of the
country, but at areas with adequate and reliable
rainfall, fertile soils, and relatively well developed
infrastructure such as roads, railways and port
facilities that favour exports. This is land that
could be used to grow food.
In northeast India, local farmers and
communities were being enticed to experiment
with jatropha. Raju Sona grew jatropha for
one year on land he otherwise uses to grow
vegetables for his family.
“If we plant jatropha we will have a
problem because [it means] we have
to buy food from outside. If there is
no market [for jatropha] then there
will be a big problem. This will cause
great loss to me. Vegetables are very
expensive [so] we can save money
with all the things we grow – we are
cultivating potatoes and cabbages. If
the land is planted professionally, it
could grow 4,000 to 6,000 cabbages in
six months to sell in the market. This
is good land for growing ginger, onions
and garlic.”
Raju Sona, farmer, India,
November 2009
food security is compromised because
local food prices are rising
ActionAid is beginning to see evidence that food
prices in local markets are beginning to increase
because of the industrial biofuel companies in
their locality.
“Instead of farming their land, people
go to work for the [biofuel] company.
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24 meals per gallon
The impact of industrial biofuels on people and global hunger
So then they are not involved in their
activities at the farm. There are now
fewer farmers involved in farming their
own land. Food is becoming a problem…
The price of food has been increasing
every now and then. The increasing
food prices have to do with food
shortages within the village due to
lower production on the farms.”
Aailyah Nyondo (alias), farmer,
Tanzania, February 2009
When asked whether less food is produced
since the biofuel company arrived, Fatuma
Omari responded:
“Yes that is true… there is little activity
on the farms and then the consequence
is low production. I am alone and have
to go to the farm daily. I never used this
[jatropha] area for firewood collection. I
buy it. I use charcoal. It was 100 shilling
but now it is 200 shilling. That’s because
of the company – the company is using
charcoal. [Food] prices are increasing
because of low production in the village
and we are depending on food from
neighboring villages.”
Fatuma Omari,
farmer, Tanzania, February 2009
broken promises
In parts of west Africa, ActionAid has witnessed
what is little more than a subtle form of land
dispossession, where communities are offered
promises from companies that are not being met.
One company has secured land from farmers,
in local currency, at about
€30
per hectare – a
very small amount of money. But some farmers
have agreed to sell the land on the condition
that they were employed by the company on the
‘plantation’ at a rate of
€130/month.
However,
having acquired the land, the company said that
it would only pay about half the amount,
€2.30/
day or
€70/month.
While this is at the minimum
wage for the country, the ActionAid office
confirmed that this is simply not a living wage.
For those that have given away all their land,
€70/month
is not sufficient for everyday needs,
including the purchase of food.
“When the company came, they made
a promise; if you want to work with
us, you have to give up your land and
you can work on the plantation. They
reneged on their promises; we had
already given up our land and now they
reduced the hours on the plantation.
In the beginning they gave us [€30/
hectare]. If you work on the plantation,
the company would pay us [€130/
month]. I worked 2-3 months and then
the company started to reduce the
salary. Finally, it came down to [€70/
month] and that is when the problems
started. I lost my land. They did not
respect me. They betrayed me. They
reduced the people on the plantation
and I lost my job. Almost all the people
in the village have lost their jobs. The
company brought their own staff from
elsewhere [in the country] but not from
the village.”
Kwame Sarpong (alias),
farmer, west Africa, 2009
Loss of income, livelihoods and
community resources
More often than not, those affected are
women, because they are the ones most
frequently ‘displaced’. So-called marginal
land is often used by women, and is critical
to their livelihood as a place to grow food and
subsistence crops, gather fuel, use for grazing
or even as a source of medicinal herbs. As
local land is taken over for industrial biofuel
production, women are forced to spend more
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25 chapter 3
What’s wrong with industrial biofuels?
time walking further afield to do other chores
such as collecting firewood.
“It is the woman who is affected most
because she is the main producer of food
for the household. The woman is feeding
the household. We normally used to go
there [to the former community land
on which the biofuel company is now
growing jatropha] for farming and
collecting firewood. Now we cannot go
there anymore. They are prohibiting
it. Now I have to go to another forest
[to collect firewood]. This is a little bit
far away. I would have to leave here
now at ten o’clock and would be back
at two o’clock. It is heavy. It is now
harder work for me to go as compared
to the other area. Because of this I can
spend less time on my farm because the
work time has been reduced.”
Aailyah
Nyondo (alias), farmer, Tanzania,
February 2009
“It would have major impacts for the
village [if the company cut down the
forest]. Now we depend as much on the
forest as we do on the farm land. We
use it for charcoal making, collecting
firewood, mushrooms, timber of which
we build houses, benches and other
things. We also collect materials of
which we make mats that we sell in the
market.”
Mwanahawa Abdala, farmer,
Tanzania, September 2009
In Ghana there are similar stories. Women have
traditionally harvested nuts from shea trees to
make shea butter – an important commodity
in cosmetics and soaps, and used locally in
cooking. Shea nuts have therefore been an
important source of supplementary income
for poor rural women, particularly during the
rainy season. But in some areas, the shea
trees have been destroyed to make way for
jatropha plantations.
“The shea nuts I am able to pick during
the year help me to have my children
in school, to buy cloth and also to
supplement the household’s food needs
when the harvest from my husband’s
farm runs out. But this year I could not
get much because of the trees that have
been cut. Now they have destroyed the
trees so we have lost a good source of
income forever, yet we have not been
paid anything in compensation. That is
why I confronted the white man at the
meeting.”
Sanatu Yaw, Ghana, 2008
Those planting jatropha in northeast India are
not getting a decent income. Most of them are
getting no income at all. The main problems are
low yields and a lack of market for seeds.
“No one will buy jatropha. People said
if you have a plantation then surely
you have a good market, but we didn’t
see such good market. When I got the
message that there was no market, I got
discouraged. I was very upset. I felt very
bad. I expected profit. I threw it [the
seeds] away. They were no use to me. I
destroyed the plants because of lack of
market. The thing is that we have land,
but if I use it for jatropha and I don’t get
good production after spending money, it
will be a great loss for me.”
Raju Sona,
farmer, India, November 2009
“Until now we have had no income from
the jatropha plantation. They told me
it would be two years before we would
have income, but it is already three
years. People are a little down now
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26 meals per gallon
The impact of industrial biofuels on people and global hunger
Matilde Ngoene,
Mozambique. Her land was
taken by a biofuel company.
PHOTO JAMES OATWAY/PANOS/ACTIONAID
because the whole project is already four
years running and there is no income. I
still hope that I will get profit otherwise I
will pull up the plants.”
Parindra Gohain
(alias), farmer, India, November 2009
In the sahel region of Senegal, ie the driest
part of the country, much of the land
earmarked for industrial biofuel production is
also used for grazing animals. Each animal
requires about 12 hectares of grazing which
will be completely impossible if land is given
over to biofuels.
Lack of consultation and compensation
The issue of compensation – or the lack of
it – runs through many of the testimonies
collected. In Tanzania, companies have been
offering compensation to people where they
had been displaced from their land. In one
location, 60% rejected the compensation
as inadequate.
In parts of west Africa, the scale and speed of
the land handout has meant that those most
directly affected by the biofuel boom have not
even been consulted.
“They actually took the land when it
was already tilled…They haven’t paid us
anything, they haven’t told us anything.
Some of the people in the town have
received money, but in our case they
haven’t given us anything... They haven’t
offered any job, they haven’t employed
us. They haven’t given us any alternative
farms. What we want is to get our farms
back, because that is what our livelihood
is dependent on... we are dying of hunger
and there is nothing that we have that
is actually our own.”
Matilde Ngoene,
mother and farmer, Mozambique
“Many things will be affected – health
clinics, wells, roads, villages, people.
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27 chapter 3
What’s wrong with industrial biofuels?
“The balance of evidence shows a significant risk that current
[biofuel] policies will lead to net greenhouse gas emissions.”
ed gallagher, renewable fuels Agency, 2008
In Africa, yields
from rain-fed
agriculture are
predicted to drop by
as much as 50% by
2020 because of
climate change
This needs a lot of consultation. But
there wasn’t any consultation and there
hasn’t been any compensation.”
Mustafa
Lo, farmer, Senegal, October 2009
Africa by more than 30% by 2030.
56, 57
More
intense droughts and floods are recurrent in
many areas. Of the 31 countries currently facing
food and agriculture crises, 11 have suffered
recent adverse weather conditions.
58
Scientists working on the
Stern Review on the
Economics of Climate Change
have predicted
that, given current trends, up to an additional
600 million people may be hungry by 2080, as
a result of climate change.
59
Obviously action to limit climate change is
imperative for development. The problem
with industrial biofuels in this context is that
they present a false solution. Some politicians
and companies claim they emit fewer GHGs
compared to fossil fuels – because they are
carbon neutral (ie, as the fuel is burned it
re-releases the carbon dioxide that the plant
absorbed when it was growing, making a
closed circuit). In truth, other resources –
land, fertiliser and energy for example – are
needed to grow the plants, and manufacture
and transport the fuels, meaning industrial
biofuels can have a large and negative
climate impact.
Labour conditions
Brazil is the largest industrial biofuel producer
in the developing world, where the sugar cane
(ethanol) plantation industry is well established.
However, working conditions are often poor.
54
Of one million cane workers, about half are
employed as cutters – most of which they
do by hand. Because of the heat and long
hours to meet quotas, it is not surprising that
a number of deaths have been reported. The
government’s own investigations have found
virtual slave labour conditions, exploitative sub-
contracting systems, poor sanitation and quality
of food, unfit drinking water and overcrowded
living conditions. In one investigation, the
team rescued 11,000 labourers working in
unacceptable conditions.
55
industriAL biofueLs Are
not A soLution to cLimAte
chAnge
Climate change is not just an environmental
and developmental issue; it’s also about
injustice. The impact of climate change will be
felt unevenly between and within countries,
reinforcing existing inequalities, between
women and men, rich and poor, and between
the north and south.
Climate change is also a hunger issue. In
some countries in Africa, yields from rain-fed
agriculture are predicted to drop by as much
as 50% by 2020 because of climate change,
and India could lose 18% of its rain-fed cereal
production in the same period. A Stanford
University study forecasts that climate change
could reduce maize production in southern
how policy has got ahead of
the science
The science surrounding the impact of
industrial biofuels on climate change is
evolving fast; and many scientists – some
using life cycle analysis – are providing
evidence that most biofuels currently being
used actually release more GHGs compared
to fossil fuels. Unfortunately, all of the figures
currently used in EU legislation (ie in the
recently agreed Renewable Energy Directive –
RED) are over-optimistic about the potential for
industrial biofuels to help reduce emissions.
The backdrop to this is that the RED stipulates
that member states’ biofuels must achieve
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28 meals per gallon
The impact of industrial biofuels on people and global hunger
Up to an additional
600 million people
may be hungry as
a result of climate
change by 2080
35% GHG savings when compared to fossil
fuel, and this rises to 50% by 2017.
The main policy areas where the EU is over-
optimistic or currently has no policies in place
are as follows.
direct land use change
The increasing use of industrial biofuels is
resulting in changes in land use. Direct land
use change happens when forests, peatlands,
grasslands or other non-agricultural lands are
converted, cut down, or dug up for industrial
biofuel production. When carbon-rich habitats
are involved, this has massive implications
for the carbon stored in the soil and in the
vegetation. As biofuel production increases,
so new land will be converted.
A recent study estimated the emissions from
change in land use and compared them to
potential emissions savings through the use of
industrial biofuels. This gives a carbon debt and
the study estimated how many years it would
take to pay back this debt:
60
Indonesian/Malaysian peatland rainforest to
palm oil biodiesel: 423 years
Brazilian Amazon to soy biodiesel: 319 years
US central grassland to corn ethanol: 93 years
Indonesian/Malaysian tropical rainforest to
palm oil biodiesel: 86 years
US abandoned cropland to corn ethanol:
48 years
Brazilian
cerrado
grassland to soy biodiesel:
37 years
Brazilian
cerrado
woodland to cane ethanol:
17 years
This suggests that it will take many decades,
even centuries, to turn any climate change
benefits into a positive GHG balance profit –
time we simply do not have if we are to limit
dangerous climate change.
Another study by the Institute for Applied
Ecology and the Institute for Energy and
Environment in Germany shows that if you
include direct land use change for the main EU
biofuel feedstocks, none of them would achieve
the required 35% GHG reduction as required by
the RED.
61
This means that most EU industrial
biofuel production must come from land already
under agricultural production, displacing
existing food and other production elsewhere –
an indirect land use change (see below).
62
Under the sustainability criteria, the RED
makes some provisions that would restrict
biofuels that originate from carbon rich areas
such as forests and peatlands. However, there
are so many loopholes that little protection is
actually afforded to high carbon stock areas.
Furthermore, unless the verification of sources
and supply chains is robust and credible, claims
that industrial biofuels are not sourced from
these areas must be treated with caution.
Furthermore, in terms of GHG emissions, the
criteria in the RED do not prohibit the use of
grasslands, on which much of the expansion
is expected to take place.
63
Much grassland is
also carbon rich. The use of only a small area of
permanent grasslands would emit more GHGs
than the annual emissions savings as predicted
by the European Commission.
64
indirect land use change (iLuc)
This occurs when land previously used to grow
food or animal feed is turned over to growing
industrial biofuels. This displaces the original
agricultural land use onto land in new areas.
Thus, while the biofuel crop itself may not
cause new land clearance directly, it can still be
held responsible because of its displacement
impact. The new land use will have a GHG
emission impact, much the same as with direct
land use change.
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29 chapter 3
What’s wrong with industrial biofuels?
For example:
EU rapeseed oil is traditionally used as
a vegetable oil in food products but is
increasingly being used as an industrial
biofuel feedstock. This displacement effect
means the EU has to import vegetable oil
to replace rapeseed oil from elsewhere,
invariably extra palm oil from Indonesia and
Malaysia, much of which will have been
grown on converted forest and peatlands.
Increased EU and US demand for Brazilian
cane and soy as industrial biofuels is
displacing other activities – such as
cattle ranching – further into the Amazon,
triggering indirect emissions.
More corn is now being grown for ethanol
in the US at the expense of soy. This in
turn pushes up the price of soy, providing
an incentive to south American farmers
to expand soy production, often into
forest areas.
This is why indirect land use change, as it
relates to climate change, is such an important
cLimAte chAnge: cheLimo’s story
“My name is Chelimo and I live in
northern Kenya. When there was rain
the land was green and our goats had
grass to eat. We used to eat our goats
when we were hungry. Sometimes we
would sell them for food.
Now the land everywhere is very
dry. My father and my uncle spend
a long time looking for green land
with grass for our goats. Each time
my father goes looking we don’t know
when he will come back. My family
have not been able to grow any food
this year.”
For poor people worldwide, the impact of
climate change is already being felt. In the
last few years, Kenya has suffered recurring
droughts, rainfall has become more
sporadic and sometimes it never arrives
at all.
In the northern part of Kenya, a prolonged
drought has led to 10 million people searching
for food. For families like Chelimo’s, hunger is
a daily problem.
There is an urgent need to reduce greenhouse
gas emissions to limit climate change. The
scientific evidence is growing every day that
most biofuels will actually make climate change
worse, compared to fossil fuels they are
replacing. Biofuels are not the answer to climate
change and will drive more people into hunger.
Chelimo, aged nine,
and her aunt Margaret,
northern Kenya.
PHOTO: ACTIONAID
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30 meals per gallon
The impact of industrial biofuels on people and global hunger
issue. The indirect displacement effect is
substantial; and if additional rainforest or
peatland is being destroyed, this will release
vast quantities of GHGs into the atmosphere.
Measuring the impact of indirect land use
change is critical if the GHG emissions of
industrial biofuels are to be correctly assessed.
The EU Commission, parliamentarians and
member states must ensure that scientifically
robust calculations on indirect land use change
are included in calculating the GHG balance
for biofuels. The precautionary principle must
be used when addressing indirect land use
change, particularly where data deficiencies
or uncertainties persist.
Will second generation be any
better?
Policy makers believe the climate change
benefits of second generation biofuels are much
greater than those of the first, but some have
cast doubts on this claim:
“An expanded global
cellulosic bioenergy [ie second generation
biofuels] program… predicts that indirect
land use will be responsible for substantially
more carbon loss (up to twice as much)
than direct land use; however, because of
predicted increases in fertilizer use, nitrous
oxide emissions will be more important than
carbon losses themselves in terms of warming
potential.”
68
Second generation biofuels could
lead to higher GHG emissions when compared
to their fossil fuel equivalent.
cultivation
Almost all industrial biofuel feedstocks require
nitrogen fertilisers. These release nitrous oxides
(N
2
0) to the atmosphere that are 300 times
more damaging as greenhouse gases than
CO
2
. Scientists now estimate that previous
analyses have underestimated the importance
of N
2
0 as a GHG by a factor of between 3
and 5.
65
Even sceptics of this work, who are
few, acknowledge that
“in some instances,
[N
2
O emissions] will result in the feedstock not
achieving GHG savings compared to fossil
fuels”.
66
Some even argue that
“increased
fertiliser use for biofuels production will cause
nitrous oxide emissions (N
2
O) to become more
important than carbon losses, in terms of
warming potential, by the end of the century”.
67
Given that the weight of scientific evidence is
compelling, that there are no emissions savings
at all for many industrial biofuels, the carbon
debt will never be paid back.
The EU must urgently include revised
calculations on nitrous oxide emissions in the
GHG balance for biofuels.
good value for money?
Even if it were possible for liquid transport
biofuels to achieve GHG emissions savings, two
other very important issues arise:
What are the net global welfare gains and
losses from adopting this policy – in short,
are industrial biofuels a cost-effective way of
reducing GHG emissions?
Is the energy pathway of growing crops and
converting them into liquid transport biofuels
the best approach of reducing greenhouse
gas emissions?
The Joint Research Centre (JRC) of the
European Commission analysed the first
question. It placed a net benefit value on energy
security, GHG benefits and employment gains.
The benefits reached
€18.4
billion. However,
the costs – in terms of industrial biofuels being
more expensive to produce when compared
to an equivalent quantity of conventional fuel –
heavily outweighs the benefits, reaching some
€56.7
billion. This net cost of some US$40
billion by 2020 would have to be met by the EU
taxpayer.
69
This cost might be worthwhile if it
were actually contributing to a reduction in GHG
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31 chapter 3
What’s wrong with industrial biofuels?
emissions, but the truth is that taxpayers will get
little if any climate benefit for their money.
In answer to the second question, there is also
a growing body of evidence to support the
conclusion:
“Biofuels can be used far more
efficiently in stationary facilities [eg power
plants] to generate heat or to co-generate
heat and electricity than they can as liquid
transportation fuels
[eg, for cars].”
70
Electric
vehicles are also more efficient in turning energy
into movement.
71
As part of a wider strategy, the then UK
Department of Trade and Industry concluded
that first generation transport biofuels are
the least cost-effective way to lower GHG
emissions.
72
The Environmental Audit
Committee in the UK came to a similar
conclusion: that current EU and UK policy fails
to ensure the most efficient use of biofuel in
terms of greenhouse gas emission potential. It
does not deliver good value for the taxpayer.
73
While there may be some benefits of using
crops for heat and power generation, we need
to approach this with extreme caution. If crops
for heat and power are grown on large-scale,
monoculture crop plantations, the problems
with emissions from land use change and
large releases of nitrous oxide, as well as other
environmental and developmental impacts, will
be the same as for transport biofuels.
fuels. But first generation biofuels are well
established and as the next section shows, their
production will expand massively. This argument
is also misleading because second generation
industrial biofuels would require new technology
and an entirely different infrastructure.
74
Thus
there is no stepping stone effect from the first
to the second generation. More importantly,
second generation biofuels may never become
commercially viable. As the OECD concludes:
““As
second-generation technologies are still in
the demonstration phase, it remains to be seen
whether they will become economically viable
over the next decade, if ever. Even with positive
technological developments there are serious
doubts about the feasibility of using residue
material as…[a] feedstock on a large scale.”
75
The EU’s second main argument is that all
EU biofuels would have to meet sustainability
criteria and standards to fill the 10% target. The
criteria have already been criticised as being far
too weak, particularly on developmental and
social grounds. But as with all criteria that deal
with commodities, verification, compliance and
certification will prove very difficult, particularly
given the sheer scale of production and the
difficulties presented by complex supply chains.
In addition, the European Commission alone will
decide, through an advisory committee, exactly
what information EU member states will require
operators to report on, and it must make its
decision with a view to avoiding an ‘excessive
administrative burden’.
ActionAid fears that the criteria and verification
will fail to provide anything like the burden
of proof on sustainability required to ensure
that industrial biofuels are actually produced
sustainably. In short, criteria and standards can
provide a cloak of acceptability that enables
unsustainable biofuels to be produced.
concLusion – the eu resPonse
The impacts are significant, wide ranging and
will only get worse. To answer the critics, and
in support of the 10% target, the EU falls back
on two main but flawed arguments. Firstly, that
we can find a technological solution: ie that first
generation industrial biofuels are a short-term
solution and are merely a stepping stone to
more ‘sustainable’ second and third generation
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32 meals per gallon
The impact of industrial biofuels on people and global hunger
4. Industrial biofuels
to 2020
governments Are increAsing
biofueL demAnd
future global biofuel demand
Industrial biofuels are not new. Brazil and the US
have been producing ethanol for decades. What
is new is the sheer scale of the biofuel boom.
Most G8 and G5 countries (see acronyms
for a list of countries) have now established
mandatory biofuel blend targets – by a certain
date, transport fuels must include a certain
percentage of biofuels (see Table 5).
By 2020, global consumption will more than
triple, increasing from about 70 billion litres
in 2008 to an estimated 250 billion litres in
2020, assuming current targets are met. Of
this, the EU would consume about 55 billion
litres in 2020, Brazil approximately 45 billion
litres, both behind the US at about 110 billion
litres. Predictions are that other countries will
consume relatively small amounts of biofuels
by 2020 – about 20% of the total consumption.
Thereafter, the amount they consume will grow
much faster.
77
Clearly this could be just the start of it.
Assuming that all countries blend 10% of their
transport fuel by 2030, consumption could
reach around 400 billion litres (about 340 million
metric tonnes).
78
the ALArming scALe of
industriAL biofueL LAnd
exPAnsion
In an era of climate change, water stress and
competing land uses (particularly for food),
where is all this biofuel land going to come
from?
global land requirements and
availability
It is difficult to predict how much land will be
needed by 2020 to produce this quantity of
industrial biofuels, and the following figures
should be treated as indicative only. One
authoritative study estimates that the additional
agricultural land required would range between
118 and 508 million hectares by 2030. This is
dependent on the crop type and productivity
level and assumes that all countries would
substitute 10% of transport fuel with biofuels
by this date.
79
Other scientists have concluded
that because of critical constraints on the
table 5: biofuel targets in the g8 and g5 countries
(mandatory unless specified otherwise)
76
country
EU
US
Canada
Russia
Japan
Brazil
China
India
South Africa
Mexico
biofuel target (ie % blend in transport fuels)
10% ‘renewable content’ by 2020 but most, if not all of this, will come from industrial biofuels
36 billion gallons by 2022
5% renewable content in petrol by 2010 and 2% in diesel by 2012
No targets
500,000 kilolitres by 2010 (voluntary)
5% biodiesel by 2010; 25% ethanol blend in petrol
10 and 2 million tonnes of ethanol and biodiesel respectively by 2020
20% biofuels by 2017 (national policy)
4.5% biofuels by 2013 (national strategy)
Targets under consideration
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33 chapter 4
Industrial biofuels to 2020
“Current mandates and targets for liquid biofuels should be
reconsidered in light of the potential adverse environmental
consequences, potential displacement or competition with food
crops, and difficulty of meeting these goals without large scale
land conversion.”
Proceedings of the scientific committee on Problems of the environment (scoPe), 2008
figure 3. eu and global biofuel consumption in 2008 and 2020
81
250
200
Billions litres
150
100
50
Global
EU
0
2000
2008
Years
Indicative only: Quantities in 2020 will vary according to a host of factors, for example whether targets are met or new ones introduced,
GHG saving targets to be achieved from biofuels, the availability of second generation and so on.
2020
productivity of biofuel crops, such as water
availability, the higher end of estimates for the
amount of agricultural land that has to be given
over may be more realistic.
80
Another study gives a lower range of between
56 and 166 million hectares by 2020. The range
takes into consideration yields, ‘co-products’
82
and the uptake of second generation biofuels
within the next 10 years
83
which, as explained
earlier, remains very unlikely.
This compares with the estimated amount of
land under industrial biofuels in 2007 of about
27 million hectares.
84
Assuming 100 million
hectares for industrial biofuels by 2020 – which
is roughly twice the size of France – this is four
times the current land use. But this has to be
taken together with other projected increases
in demand for land and land availability,
particularly for food.
competing global land use requirements
The expansion of biofuels is happening at
a time of massive competing land uses –
including forestry, agriculture for food, animal
feed, fibres and fuels, and the expansion of
urban areas. One of the largest competing
uses will be food for a growing population.
In 2007, the United Nations Environment
Programme (UNEP) calculated that by 2020
an extra 200 to 700 million hectares of
additional land will be required to grow food,
animal feed and provide pasture for animals.
85
These figures are backed by similar findings
from other studies.
The Gallagher report looked at three different
land requirement scenarios for food, feed and
fuel by 2020:
86
an optimistic scenario where only 60 million
hectares of land are required for industrial
biofuels, and 200 million hectares for food
and feed;
a mid-range scenario where 100 and 400
million hectares are required respectively;
a pessimistic scenario where 200 and 500
million hectares are required respectively.
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34 meals per gallon
The impact of industrial biofuels on people and global hunger
Carlotta Machaule
lost her land with a farming
association to a biofuel
company in Mozambique,
and is now fighting to
reclaim her rights.
PHOTO: JAMES OATWAY/PANOS/ACTIONAID
The mid-range scenario assumes that,
by around 2020, some 500 million more
hectares of crops may have to be brought
into agricultural use to meet global demand.
This is an area roughly half the size of Europe.
The current area of arable land in the world
is about 1.5 billion hectares. This means that
500 million hectares – 33% more land than is
currently under cultivation – would have to be
found.
87
global land use availability
The Gallagher report also summarised various
studies in an attempt to estimate land suitable
for global agricultural expansion. This ranged
from 50 million to 1.2 billion hectares.
88
With
such a large range, any analysis of requirements
versus availability becomes hypothetical. But
even towards the lower end of these estimates,
grassland and so-called marginal land (see Box
3) are likely to be brought into production. Even
woodlands, forests and other natural habitats
are likely to be lost.
This is unsustainable because:
forests and other natural habitats – such as
wetlands – are important carbon sinks and
biodiversity hotspots;
grassland will be a primary target for
industrial biofuel expansion
89
because they
are considered low carbon stock areas.
But even here, grasslands – particularly
permanent grasslands – are important
carbon stores;
even if land were available, there are other
factors that make expanding intensive
agriculture, including biofuels, unrealistic;
– water accessibility will impose constraints
on land use. This is likely to be made
worse by climate change. The scarcity
of resources, particularly land and water,
will be a key issue in many parts of the
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35 chapter 4
Industrial biofuels to 2020
developing world earmarked for industrial
biofuel expansion, where the fight against
hunger must take precedence.
– by 2020, because of climate change, there
are likely to be strenuous attempts to place
agriculture on a sustainable basis, both to
mitigate the effects of climate change, and
to help people adapt to them. Intensive
agriculture and associated land use is
already responsible for 30% of global
GHGs.
90
All the major industrial biofuel
feed stocks, with the exception of soy,
require significant amounts of nitrogen
oxide fertilisers; nitrous oxides released into
the atmosphere are one the most potent
GHGs.
91
The idea that we can increasingly
intensify agriculture – ie to get greater
biofuel yields from a hectare of land – is
continually untenable.
In conclusion, land is becoming an ever-more
pressured resource, particularly in an era of
water stress and climate change. Massive
competing land use raises doubts as to whether
we have enough land to feed the world in the
future. Land for food must be prioritised over
land for fuel.
eu land requirement
Buoyed by the fact that the mandatory 10%
target has provided the assurance and
confidence it needs, and backed by generous
subsidies, EU agribusiness is scouring the
world for future industrial biofuel investment
opportunities. Four crops dominate the new EU
biofuel colonial frontier in developing countries
– sugar cane to make ethanol and jatropha, and
palm oil and soy for biodiesel.
direct land use issues
Where will the 55 billion litres of biofuel required
by the EU by 2020 to meet its 2020 target
originate from? And how much land to grow it
would be required from developing countries?
By way of illustration, the Dutch Environment
Assessment Agency estimates that globally,
some 20-30 million hectares will be required if
biofuels are used to meet the EU 10% target.
92
figure 4: eu biodiesel and ethanol consumption by source in 2020
96
Other (including
jatropha) 5%
Brazilian soy 7%
US soy 8%
Argentinian soy 10%
EU oil seed rape 22%
Indonesian palm oil 25%
Malaysian palm oil 23%
Other 8%
EU sugar beet 5%
EU coarse grains
(ie maize) 8%
EU wheat 35%
Brazilian sugar cane 44%
EU biodiesel consumption by source in 2020
(Total = 27.5bn litres)
EU ethanol consumption by source in 2020
(Total = 27.5bn litres)
Sources: UK government/ author’s own calculations. These graphs should be used as indicative only. They are based almost exclusively on
economic assumptions (costs, prices, tax incentives etc) as well as production and consumption targets. They do not consider other
assumptions such GHG savings/losses, trade restrictions, blend characteristics, technical specifications etc.
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36 meals per gallon
The impact of industrial biofuels on people and global hunger
Jatropha plantation,
northern Senegal.
PHOTO: TIM RICE/ACTIONAID
For reasons explained below, ActionAid believes
that the higher end of this estimate is likely to be
more realistic, if not higher.
It is impossible to gauge with any certainty as
to ‘what’ will be grown ‘where’ to meet this
increased EU biofuel use. Much will depend,
for example, on the profitability of different
types of biofuels (the major factors being the
price of oil and the feedstock price), their blend
characteristics and technical specifications,
yield changes and the level of climate change
savings or losses for biofuels compared to
fossil fuels.
That said, some modelling has been done to
ascertain what feedstocks could be grown where.
The UK Renewable Energy Association predicts
that the EU could produce up to 80% of its own
biofuel needs by 2020.
93
However, the majority
of estimates, for example that conducted by the
JRC, conclude that the EU will have to import
between a half and two-thirds of its consumption
by 2020 assuming that second generation
biofuels are not available by this date.
94
Despite the uncertainties, some member
states are also attempting to map out this
information. Most of these models assume that
EU consumption in 2020 (by volume) will be
fairly evenly split between biodiesel and ethanol.
Again, imports would comprise about 60% of
EU consumption. These figures should be used
as indicative only (Figure 4).
Using the graphs in Figure 4, the following is a
crude estimate of what land may be required
from developing countries to meet the EU 10%
industrial biofuels target in 2020:
Some 2.5-3 million hectares in Indonesia
and Malaysia may be required to supply
palm oil.
Some 2-2.5 million hectares in Brazil may be
required to supply ethanol from sugar cane
(to reach this level would require changes to
the level of import tariffs on Brazilian ethanol
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37 chapter 4
Industrial biofuels to 2020
Both directly and
indirectly, the total
land required to met
the EU 10% target in
developing and
developed countries
will run into the
tens of millions
of hectares
which are currently high to protect the
ethanol industry in the EU).
Assuming that jatropha makes up 5% of EU
biodiesel consumption in 2020, this may also
require between 1-2 million hectares of land
depending on final yields. A key location for
production is in Africa and south Asia where
it is deemed that so-called idle and marginal
land is available (see Box 3).
Other sources – such as soy from Argentina
and Brazil – may require 8-10 million hectares.
This all adds up to some 13.5-17.5 million
hectares of developing country land. The top
end of this figure is well over half the size of
Italy. Millions of hectares will also be required in
developed nations, principally the EU and US.
indirect land use issues
A significant amount of land in the EU formerly
used for food is also being diverted into biofuel
production. For example, EU rapeseed oil has
traditionally been used in the food industry as
a vegetable oil, but increasingly large amounts
are now being used as a feedstock for industrial
biofuels. The food industry has had to turn to a
different source, and invariably this is oil palm
from southeast Asia. If 22% of biodiesel in 2020
comes from domestically produced edible oils,
this suggests a shortfall – which will be filled by
palm oil – of about six billion litres of edible oil
requiring another 1-2 million hectares of land
in developing countries.
95
But this is a conservative estimate. For
example, it is very difficult to quantify the
impact of higher maize production and prices,
say in the US. Here farmers are switching
to maize at the expense of soy, which in
turn drives up the price of soy; this gives an
incentive for an increase in land grabbing for
soy production in south America, which is
associated with tropical deforestation.
conclusion
Both directly and indirectly, the total land
required to met the EU 10% target in developing
and developed countries will run into the tens
of millions of hectares. As shown in Chapter 3,
this will have disastrous impacts on food prices,
hunger, climate change and land rights for many
of the communities where they are grown.
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38 meals per gallon
The impact of industrial biofuels on people and global hunger
5. Biofuel use –
a suggested way forward
The way forward for biofuels should be built
around three core principles. Firstly, that
there is a role for biofuels so long as they are
produced sustainably, do not compete with
food and genuinely contribute to reducing
GHGs (see Box 4). These biofuels could
potentially be used in a number of ways
– heating, power, cooking, transport etc.
Secondly, that a more sustainable society must
reduce energy consumption so that many of
the impacts identified in this report can be
minimised, or even avoided. Thirdly, alternative
and more sustainable transport modes must
be prioritised such as public transport, electric
vehicles (assuming that the electricity source
is decarbonised) and cycling.
Alongside this, the rush to industrial biofuels
must be reined in, and ultimately stopped.
production before sustainable local
biofuel needs;
– protect access to resources, particularly
land rights, for both men and women
(this would include the principles of free,
prior and informed consent and greater
transparency where contracts with
companies are involved);
– ensure that all workers enjoy decent
standards of work as defined by the
International Labour Organisation;
– ensure that overseas companies are held
legally accountable for their impacts on
human rights and the environment.
2: nAtionAL Action PLAns
must not Lock in biofueLs
The Renewable Energy Directive requires that
EU member states must each produce, by June
2010, a National Renewable Energy Action Plan
(NREAP or NAP for short) which will set out
the targets for the share of renewable energy
in transport, electricity, heating and cooling
sectors by 2020. The directive also includes a
review of the 10% transport target in 2014.
Because of the growing evidence against
industrial biofuels, ActionAid believes that,
when drawing up NREAPs in 2010, EU member
states must not introduce or increase targets
for the proportion of energy that comes from
industrial biofuels – a stream that is likely to be
deemed economically, environmentally and
developmentally unviable in the future. In the run
up to the 2014 review, we believe the evidence
will confirm, even to sceptics, that industrial
biofuels are not a sustainable way to reach even
the current 10% transport target (by volume),
and that EU members states should abolish all
volume targets, certainly no later than 2014.
ActionAid believes that it is currently
impossible to meet the EU target sustainably.
1: there shouLd be A
morAtorium on the further
exPAnsion of industriAL
biofueL Production
And investment
The moratorium would have the effect of
reducing impacts by limiting further expansion.
All governments, both north and south, are
culpable in allowing and even encouraging
harmful biofuel investments to go ahead. Much
of the expansion taking place in developing
countries is happening with little regulatory
control over company operations and
unsustainable land use.
The moratorium should remain in place until:
the UN reports on a full and global
assessment of the impacts of industrial
biofuels;
national legislation and regulatory
frameworks are in place and enforced that:
– implement a sustainable land use plan
that prioritises sustainable local food
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39 chapter 5
Biofuel use – a suggested way forward
“A more effective way to reduce greenhouse gases and secure
energy supply is to reduce demand, improve efficiency and
develop sustainable transport and energy systems.”
friends of the earth, 2008
The current 10% target for transport should
be replaced by a renewables target based on
GHG reductions.
This would include:
that all GHG emissions are calculated
robustly and credibly, using a precautionary
approach. In particular, direct and indirect
land use change and nitrous oxide emissions
must be properly included.
that sustainability criteria are strengthened
and include developmental issues. The
verification and certification of the criteria
must be transparent, credible and robust.
3: trAnsPort And energy
consumPtion must be
reduced
The simplest and cheapest way for EU member
states to reduce the impact of their transport
and energy sectors – whether in relation to
GHG emissions, hunger or other issues – is to
embark on a drive to reduce transport fuel and
energy demand.
For this to happen there needs to be much
more EU support given to:
investment in public transport and other
more sustainable forms of transport such
box 4: sustAinAbLe AgricuLture And sustAinAbLe biofueLs
Sustainable agriculture integrates three
main goals – environmental stewardship,
farm profitability and prosperous farming
communities. It refers to the ability of farms to
produce food indefinitely, without damaging
soils and ecosystems, or people, their
communities and livelihoods. It would aim to
maintain healthy soils while reducing reliance
on external ‘inputs’ – such as fertilisers,
pesticides and herbicides.
Sustainable production of biofuels from land
should follow similar principles. However, in
addition:
• biofuels should not compete with food;
• they should prioritise the greatest GHG
savings;
• they should be controlled by and for the
benefit of local communities;
• they should prioritise small-scale
production targeted at local energy needs;
• where companies and investors are
involved, they should have obtained the
free, prior and informed consent of local
communities and people.
ActionAid Brazil has been looking into the
potential of small-scale sugar cane production
in the south of the country. One example
shows how smallholder farmers are taking
into account social and environmental
considerations, for example energy self-
sufficiency, non-competition with food crop
production as well as adding value to their
products. Each small sugar mill is managed
by 10-15 smallholder farming families, each
having two to six hectares of sugar cane. They
work collectively and divide the work, such
as cutting and crushing the sugar cane, and
the production of brown sugar, ethanol and
cachaça
– a strong and traditional Brazilian
alcoholic drink. According to demand and
prices, each mill can decide what product
they are going to produce. They also use the
crushed sugar cane
(bagasse)
to produce
animal feed.
However, other forms of sustainable biofuels
are also available – ie those fuels produced
from waste processes such as landfill off-
gassing and recycled vegetable oil.
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40 meals per gallon
The impact of industrial biofuels on people and global hunger
as electric vehicles and cycling;
more ambitious vehicle efficiency standards;
more ‘efficient’ driving such as reducing
speed limits;
investment in energy efficiency.
4: finAnciAL incentives
for industriAL biofueLs
must end
As well as the 10% target, other policy drivers
within the EU are stimulating the unsustainable
boom in industrial biofuels. The EU and
members states must end all subsidies and
other financial incentives to these fuels.
To that end, the EU should support small-scale,
sustainable biofuel projects controlled by and
for the benefit of local communities. This should
prioritise local energy needs, the preservation
of natural resources and the greatest GHG
savings. Such projects should not displace
food production, or impact on biodiversity
and habitats. Where companies and investors
are involved, they should have obtained the
free, prior and informed consent of local
communities and people.
Support should also be given to fuels produced
from waste processes such as landfill off-gassing
and recycled vegetable oil.
5: smALL-scALe sustAinAbLe
biofueL Projects shouLd
be suPPorted in the eu And
AbroAd
ActionAid believes sustainable smallholder
agriculture offers a key solution to tackling
hunger, as well as addressing poverty and
tackling GHG emissions from agriculture.
Mounting evidence shows sustainable agriculture
is highly productive in poor countries and has
other social and environmental benefits.
While ActionAid would argue that sustainable
agriculture must prioritise food before other
uses, there are situations where farming for
food, animal feed, fibres and fuel (ie sustainable
biofuels), could exist side-by-side. Where
produced and consumed locally, this would
have additional benefits in terms of fighting
hunger and energy poverty, and promoting
climate mitigation and adaptation, employment
and incomes.
But the scale will be nothing like that proposed
by rich nations. Most, if not all, sustainable
production of biofuels would be consumed
locally in developing countries and would not be
for export.
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41 chapter 6
Conclusion and recommendations
6. Conclusion and
recommendations
Industrial biofuels do not offer a solution to the
two main aims of EU biofuel policy – to combat
climate change and increase fuel security.
Rather, industrial biofuels are fuelling poverty
and hunger because they are now competing
with food crops, dramatically increasing the
prices that poor people pay for food worldwide.
At the same time, biofuels are having disastrous
local impacts on food security and land rights
for many of the communities where they are
grown.
Industrial biofuels are the main cause of the
food crisis and recent rises in hunger. Despite
this, political action on hunger and biofuels has
been minimal. Industrial biofuels provide a false
solution that allows rich nations to continue their
love affair with the internal combustion engine,
and industry to continue its business-as-usual
approach. It has allowed developed countries
to avoid the urgent and difficult realisation that
our current levels of transport fuel consumption
(and energy more generally) are unsustainable
and need to be reduced. Meanwhile, the costs
of these policies – in terms of hunger, poverty,
climate change, environmental degradation
and on people – are being felt mainly in the
developing world.
Oil prices are once again increasing, and unless
the industrial biofuel boom is reined in (and
targets for the proportion of our energy that
comes from them dropped), hunger is in danger
of spiralling out of control and climate change
will worsen. The hunger and climate crises
require immediate and sustainable responses –
and industrial biofuels are not the answer.
The easiest and best way to reduce the impact
of the transport sector on hunger and GHG
emissions, as well as improve our energy
security, is to reduce the overall consumption of
energy by transport. In terms of climate change,
this will yield immediate and guaranteed
reductions in GHGs. Once land-use changes,
fertiliser use and other factors are taken into
consideration, it is clear that many industrial
biofuels do not have a role to play in the fight
against climate change.
recommendations
ActionAid is in favour of sustainable biofuels.
But industrial biofuels – large-scale, intensive
monocultures – are clearly unsustainable and
in ActionAid’s view, their expansion should be
stopped. The EU and member states must:
place a moratorium on the further expansion
of industrial biofuel production and
investment;
ensure that member states do not lock
industrial biofuels into their 2010 national
action plans;
reduce transport and energy consumption;
end targets and financial incentives for
industrial biofuels;
support small-scale sustainable biofuels in
the EU and abroad.
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42 meals per gallon
The impact of industrial biofuels on people and global hunger
endnotes
1
FAO, 2009a.
The State of Food Insecurity in the World 2009.
Food and Agriculture Organization , Rome.
2
GAIN. EU27
Biofuels Annual Report 2009.
3
Doornbosch, R. and Steenblich, R.
Biofuels: Is the Cure
Worse than the Disease?
OECD, 2007. www.oecd.org/
dataoecd/15/46/39348696.pdf
4
OECD/FAO.
Agricultural Outlook 2008-2017.
Food and
Agriculture Organization , Rome, 2008.
5
See Wynn, G.
Advanced Biofuels Will Stoke Global Warming:
Study.
Reuters, 22nd October2009. www.reuters.com/article/
idUSTRE59L4V920091022
6
Official Journal of the EU, 2009.
Directive 2009/28/EC on the
Promotion of the Use of Energy from Renewable Sources.
5 June
2009. http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:
L:2009:140:0016:0062:EN:PDF
7
Bertholet, J.
The EU’s Main Agrofuels Subsidies in 2006 and
2020.
Solidarite, 2008.
8
HM Revenue and Customs, 2007. BN53 –
Hydrocarbon Oils
Duty: Rates.
www.hmrc.gov.uk/budget2007/bn53.htm
9
GAIN, 2009.
Op cit.
10
Berthelot, 2008.
Op cit.
11
Berthelot, 2008.
Op cit.
12
Stevens, C.
EU Biofuel Policy and Development.
Overseas
Development Institute, 2008. www.icea.co.uk/archive/EU%20
biofuel%20policy%20development.ppt#256,1,EU Biofuel Policy
and Development
13
Official Journal of the European Communities, 2008.
Commission Decision of 9th December 2008.
http://eur-lex.
europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:334:0090:0
091:EN:PDF
14
Bizzarri, K.
Cornering the Market in Agrofuels: Brazil’s Bid to
Dominate the EU.
Corporate Europe Observatory, 2008. http://
archive.corporateeurope.org/docs/Cornering_the_market_in_
agrofuels.pdf
15
Mitchell, D.
A Note on Rising Food Prices,
April 2008. Don
Mitchell is a lead economist for the World Bank but the views do not
necessarily reflect the views of the Bank.
16
Abbott, P. C. et al.
What’s Driving Food Prices?
Purdue
University, 2008.
17
FAO, 2009b.
Crop Prospects and Food Situation.
http://www.
fao.org/docrep/011/ai481e/ai481e04.htm and FAO, 2009c. Food
Outlook. http://www.fao.org/docrep/011/ai482e/ai482e02.htm
18
USDA.
Agricultural Baseline Projections: U.S. Crops, 2009-
2018.
US Department for Agriculture, 2009. www.ers.usda.gov/
Briefing/Baseline/crops.htm
19
See Brown, L. R.
Biofuels Blunder Massive Diversion of US
Grain to Fuel Cars is raising World Food Prices.
Earth Policy
Institute, 2007. www.earth-policy.org/index.php?/press_room/
C68/SenateEPW07
20
FAO, 2009d.
Food Price Indexes.
www.fao.org/
worldfoodsituation/FoodPricesIndex/en/
21
Collins, K., 2008.
The Role of Biofuels and Other Factors
in Increasing Farm and Food Prices. A Review of Recent
Developments with a Focus on Feed Grain Markets and Market
Prospects.
Report for Kraft Foods Global Inc, June.
22
See Bailey, R. 2008a.
Another Inconvenient Truth.
Oxfam pages
19-20.
23
Borger, J. 2008a.
US Attacked at Food Summit over Biofuels.
Guardian, 4 June. www.guardian.co.uk/environment/2008/jun/04/
biofuels.food
24
Mitchell, 2008.
Op cit.
25
Anderson, J. W. Food
Prices Predicted to Ease Before Entering
Steady Climb.
Washington Post, 2008. www.washingtonpost.
com/wp-dyn/content/article/2008/05/29/AR2008052901023.
html?wpisrc=newsletter
26
Wiggins S. et al.
Review of the Indirect Effects of Biofuels:
Economic Benefits and Food Insecurity.
Overseas Development
Institute, June 2008. p7.
27
See Runge C. F. and B. Senauer, 2007.
How Biofuels Could
Starve the Poor.
Foreign Affairs, Volume 86, No 3
28
Senauer, B. and M. Sur,.
Ending Global Hunger in the 21st
Century: Projections of the Number of Food Insecure People.
Review of Agricultural Economics, 23 (1) 2001, pp68-81.
29
Boel, F.
Biofuels: not a Magic Wand but a Valuable Policy Tool.
Speech to the 2008 World Biofuels Market Congress, 13 March
2008.
30
Bailey, R. 2008b.
Response of Oxfam GB to the Gallagher
Review.
Oxfam.
31
FAO, 2009f.
National Basic Food Prices: Data and Analysis Tool.
http://www.fao.org/giews/pricetool/ accessed 3rd December
2009
32
IRIN.
Swaziland: Sugar Prices Tempt Small Farmers Away from
Food Production,
4th August 2009 http://www.irinnews.org/report.
aspx?ReportID=85749
33
FAO, 2009e.
Crop Prospects and Food Situation.
November.
http://www.fao.org/docrep/012/ak340e/ak340e02.htm
34
Runge C. F. and B. Senauer, 2007.
How Biofuels Could Starve
the Poor.
Foreign Affairs, Volume 86, No 3
35
Wittington, E.
Growing Pains: The Possibilities and Problems
with Biofuels.
Christian Aid, 2009.
36
FAO, 2008a.
Food Situation in Latin America and the
Caribbean.
September/October http://www.rlc.fao.org/iniciativa/
pdf/bolobs3_en.pdf
37
FAO, 2008b.
Crop Prospects and Food Situation.
October. See
for example http://www.fao.org/docrep/011/ai473e/ai473e03.htm
38
FAO, 2008c.
The State of Food and Agriculture. Biofuels:
Prospects, Risk and Opportunities.
pp75-76.
39
Barrett quoted in FAO, 2008c.
Op cit,
p75.
40
DFID.
Growth and Poverty Reduction: the role of Agriculture.
London, 2005.
41
FAO, 2008c. p76.
42
UNICEF.
Women and Children: The Double Dividend of Gender
Equality,
2007. www.unicef.org/sowc07/docs/sowc07.pdf
43
Wiggins S. et al, 2008.
Op cit.
p88.
44
UNICEF, 2007.
Op cit.
p26.
45
FAO, 2008c.
Op cit.
p76-77.
46
FAO, 2009g.
Crop Prospects and Food Situation.
www.fao.org/
docrep/012/ak340e/ak340e04.htm
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823587_0045.png
43 endnotes
47
IIED, 2009.
Land Grab or Development Opportunity: Agricultural
Investment and International Land Deals in Africa.
ftp://ftp.fao.org/
docrep/fao/011/ak241e/ak241e.pdf pp41-51.
48
Whittington, E.
Growing Pains: the Possibilities and Problems
with Biofuels.
Christian Aid, 2009.
49
Painter, J.
Losing Land to Palm Oil in Kalimantan.
3
August, 2007. http://news.bbc.co.uk/nolpda/ukfs_news/hi/
newsid_6927000/6927890.stm
50
MWC News.
Biofuel Threat to Indigenous People,
2007. http://
mwcnews.net/content/view/14507/235/
51
Friends of the Earth.
Jatropha: Wonder Crop? Experience from
Swaziland.
Friends of the Earth Europe, Brussels, 2009.
52
Wiggins S. et al, 2008.
Op cit.
p51.
53
Wiggins S. et al, 2008.
Op cit.
p122.
54
Bailey, R. 2008a.
Op cit.
55
See Whittington, 2009.
Op cit.
pp17 and 18.
56
Lobell, D. B. et al.
Prioritizing Climate Change Adaptation Needs
for Food Security in 2030.
Science 1 February 2008. Vol. 319. no
5863
57
IPCC, 2007a.
Fourth Assessment Report (AR4).
Intergovernmental Panel on Climate Change.
58
FAO, 2009e.
Op cit.
59
UNDP.
Human Development Report 2007.
60
Fargione, J. et al.
Land Clearing and the Biofuel Carbon Debt.
Science, Washington, 2008.
61
Fritsche, U. R. et al.
Sustainable Bioenergy: Current Status and
Outlook.
The Institute for Applied Ecology (Darmstadt) and the
Institute for Energy and Environment Research (Heidelberg) , 2008.
www.umweltdaten.de/publikationen/fpdf-l/3741.pdf
62
T&E.
Biofuels Handle with Care: An Analysis of Biofuel Policy
with Recommendations for Action.
Transport and the Environment
and other NGOs in Brussels, 2009.
63
De Vries et al. As cited in Ravindranath, L. H. et al, 2008.
Greenhouse Gas Implications of Land Use and Land Conversion to
Biofuel Crops,
2007. http://cip.cornell.edu/DPubS?service=UI&ver
sion=1.0&verb=Display&page=current&handle=scope
64
Birdlife International, EEB and T&E.
How and Why Indirect Land
Use Change Impacts Should be Addressed in European Biofuels
Legislation.
Birdlife International, European Environmental Bureau
and Transport & Environment, Brussels, 2009.
65
Crutzen, P. J. et al.
N
2
O release from Agro-biofuel Production
Negates Global Warming Reduction by Replacing fossil Fuels.
Atmospheric Chemistry and Physics 8(2), 2008.
66
Gallagher, E.
The Gallagher Review of the Indirect Effects of
Biofuels Production.
Renewable Fuels Agency, UK, 2008.
67
MBL.
New Study Predicts Future Consequences of a Global
Biofuels Program.
Marine Biological Laboratory, 2009. http://www.
mbl.edu/news/press_releases/2009_pr_10_22b.html
68
Melillo, J. M. et al, 2009.
Indirect Emissions from Biofuels:
How Important?
http://science-mag.aaas.org/cgi/content/
abstract/326/5958/1397
69
De Santi, G. et al.
Biofuels in the European Context: Facts and
Uncertainties.
Joint Research Centre, European Commission,
2008. pages 20 and 21.ec.europa.eu/dgs/jrc/downloads/jrc_
biofuels_report.pdf
70
Howarth R. W. et al., 2008a.
Introduction: Biofuels and the
Environment in the 21st Century.
http://cip.cornell.edu/DPubS?s
ervice=UI&version=1.0&verb=Display&page=current&handle=s
cope
71
T&E, 2009.
Op cit.
72
DfT, 2007.
UK Biomass Strategy 2007: Working Paper 1.
Department for Trade and Industry, London.
73
EAC, 2007.
Are Biofuels Sustainable?
Environmental Audit
Committee, House of Commons, London.
74
T&E, 2009.
Op cit.
75
Doornbosch and Steenblich, 2007.
Op cit.
76
Many sources but mainly FAO, 2008c.
Op cit.
p29.
77
AEA, 2008.
Review into Indirect Effects of Biofuels.
Report to
the Renewable Fuels Agency. AEA Energy and Environment.
78
See Ravindranath et al, 2008.
Op cit.
p117.
79
Ravindranath et al, 2008.
Op cit.
p117.
80
Howarth, R. W. et al, 2008b.
Rapid Assessment of Biofuels and
the Environment: Overview and Key Findings.
http://cip.cornell.
edu/DPubS?service=UI&version=1.0&verb=Display&page=curre
nt&handle=scope
81
Many sources but mainly AEA, 2008.
Op cit.
82
Co-products are by products from the production and
processing of biofuels. One co-product is called ‘distillers grain’
which can be fed to animals. Industry in particular argues that this
reduces the amount of animal feed imports, particularly soy from
South America, thereby reducing net land use change.
83
Gallagher, 2008.
Op cit.
84
Ravindranath et al, 2008.
Op cit.
85
CE Delft.
Agricultural Land Availability and Demand in 2020.
Report to the Renewable Fuels Agency, UK, 2008.
86
Gallagher, 2008.
Op cit.
87
Gallagher, 2008.
Op cit.
p34.
88
Gallagher, 2008.
Op cit.
pp33-35.
89
De Vries et al, 2007.
Op cit.
90
IPCC, 2007b.
Change 2007 : Mitigation. Contribution of
Working Group III to the 4th Assessment Report of the IPCC.
Intergovernmental Panel on Climate Change.
91
Howarth et al, 2008b.
Op cit.
92
MNP.
Local and Global Consequences of the EU Renewable
Directive for Biofuels.
Dutch Environment Assessment Agency,
Bilthoven, 2008.
93
REA, 2009.
Review Gives Green Light to Biofuels Industry.
Renewable Energy Association. http://www.r-e-a.net/info/rea-
news/review-gives-green-light-to-biofuels-industry/
94
De Santi, et al, 2008.
Op cit.
95
See also Bailey, 2008a.
Op cit.
pp 10 and 45.
96
See DfT, 2009.
Global and EU Biofuel Scenario to 2020:
Analysis using the OECD-FAO Aglink-COSIMO Model.
UK
Department for Transport, London.
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44 meals per gallon
The impact of industrial biofuels on people and global hunger
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823587_0047.png
Author:
tim Rice
Editor:
Angela Burton
Acknowledgements
Special gratitude is extended to all those that assisted in the gathering of case studies in ActionAid country
programmes, to the partner organisations we worked with in the field and to those that gave testimonies on the
impacts of industrial biofuels.
In particular, thanks should go to: Moussa faye, Al Hassan cisse, fatou Mbaye, francoise victorine Dioh, Soukeyna traore,
Elias Mtindi, celso Marcatto, Maíra Martins, Marcelo Montenegro, Annika Jacobson, Bas Bijlsma, Gerno Kwaks, Nicola Borello,
carmen Munhequete, clara de Oliveira, Anastacio Matavel, Salvador chivite, Mario chongo, Elija Nthinda, Mrinal Gohain,
florence Minj, Gana chetna Samaj, Atul Loke, James Oatway, Hannah Griffiths, Meredith Alexander, Lotty Reynolds, Laurence
Watts, David San Millan Del Rio, Phil Hesmondhalgh, Stephanie Ross, Anne Jellema and claire Beadle.
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823587_0048.png
“They took the land when it was already tilled...
they haven’t paid us anything. We are dying of
hunger and there is nothing that we have that
is actually our own.”
Matilde Ngoene,
(front cover) a farmer in Marrenguele village, Gaza province, Mozambique.
Her land has been taken by a biofuel company and she has not been compensated.
ActionAid is a partnership between people in rich and
poor countries, dedicated to ending poverty and injustice.
We work with people all over the world to fight hunger
and disease, seek justice and education for women, hold
companies and governments accountable, and cope with
emergencies in over 40 countries.
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January 2010
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fRONt cOvER PHOtO: JAMES OAtWAy/PANOS/ActIONAID
Visit www.actionaid.org.uk/biofuels
for more on our
industrial biofuels campaign.