Challenges and opportunities for developing countries in producing biofuels

Nov 2006

The production of energy from biomass involves a range of technologies, including solid combustion, gasification and fermentation. These technologies produce liquid and gas fuels from a diverse set of biological resources – traditional crops (sugar cane, maize, oilseeds), crop residues and waste (wheat straw, rice hulls, cotton waste), energy-dedicated crops (grasses and trees), dung and the organic component of urban waste. The results are products that provide multiple energy services: cooking fuel, heat, electricity and transportation fuels.
This study presents the evolution of international trade of biofuels and feedstock, and current trade regulations (tariffs and non-tariffs measures). It also briefly mentions current incentive policies in the EU and the United States for developing biofuels and look for indications of the policy they will adopt regarding consumption and import of biofuels. The study then turns to issues relevant for biofuels production in developing countries. It tries to analyse what is at stake about food security, land uses, employment, public finance and environmental concerns. The final section identifies some recent development of prices.

By: UNCTAD

 
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