Biofuels: 'Irrational' and 'even worse than fossil fuels'
The UK's "irrational" use of biofuels will cost vehicle drivers around ₤ 460 million over the next 12 months, a think tank says.
A report by Chatham House, external says the growing dependence on sustainable liquid fuels will also increase food prices.
The author states that biodiesel made from grease was worse for the climate than fossil fuels.
Under EU law, external, biofuels are set to comprise 5% of the UK's transport fuel from today.
Since 2008, the UK has actually required fuel suppliers to include a growing proportion of sustainable products into the fuel and diesel they supply. These biofuels are mainly ethanol distilled from corn and biodiesel made from rapeseed, utilized cooking oil and tallow.
Deep fried fuel
But research carried out for Chatham House says that reaching the 5% level suggests that UK vehicle drivers will have to pay an additional ₤ 460m a year due to the fact that of the greater cost of fuel at the pump and from filling regularly as biofuels have a lower energy material.
The report say that if the UK is to fulfill its responsibilities to EU energy targets the expense to vehicle drivers is most likely to rise to ₤ 1.3 bn per year by 2020.
"It is difficult to find any excellent news," Rob Bailey, senior research fellow at Chatham House, informed BBC News.
"Biofuels increase expenses and they are a really pricey way to decrease carbon emissions," he said.
The EU biofuel requireds are also having hugely distorting impacts in the market. Because used cooking oil is considered among the most sustainable types of biodiesel, the price for it has actually risen quickly. Rob Bailey states that towards the end of 2012 it was more pricey than refined palm oil.
"It develops a monetary incentive to buy refined palm oil, cook a chip in it to turn it into utilized cooking oil and after that sell it at profit,"
"It is insane however the rewards are there."
There are likewise worries that taking EU land out of production to grow rapeseed oil in specific is developing more environment issues than it fixes. The more fuel of this type that is put into automobiles the bigger the deficit developed in the edible oils market. This had lead to increased imports of palm oil from Indonesia, typically produced on deforested land.
"Once you consider these indirect effects, biofuels made from veggie oils actually result worldwide in more emissions than you would obtain from utilizing diesel in the first place," stated Rob Bailey.
"Plus you are asking drivers to pay more for the fuel - it makes no sense, it is a totally illogical strategy."
Biofuel advantages
The European Biodiesel Board (EBB), which represents the market, external across the EU, stated it knew the issues caused by the required. But it believes that biofuels have numerous positives.
"Blaming biofuels for all the troubles worldwide is a bit too overstated," said Isabelle Maurizi, job supervisor at the EBB.
"It has actually brought great deals of advantages. It has actually improved the security of our diesel; it has actually lowered EU reliance on animal feed imports, thanks to the rapeseed we grow for biodiesel."
"If there was no biodiesel farmers would just make their land idle - no food, no feed!"
As the UK strikes the 5% of liquid fuels mark, the government deals with some difficult choices on how to move on on this issue as it faces tripling the costs for drivers by 2020.
Insiders recommend its preference would be to try and get contract in Brussels on the impacts of indirect costs which might constrain what counts as biofuel. However getting contract from nations with effective agricultural sectors who benefit from the present arrangement will be tough.
"When you have a lobby that includes the agricultural sector and the oil sector it is extremely tough for Governments to make a U-turn," said Rob Bailey.
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