Biofuels can boost rural employment: IIED

  • 03/06/2008

  • Financial Express (New Delhi)

Biofuels can boost incomes and yields for farmers, revitalising impoverished rural areas when they are introduced in countries with secure land ownership, the International Institute for Environment and Development said. By raising the price of crops such as corn and palm oil, biofuels can reduce poverty in countries with a high dependency on agriculture, the London-based researcher said in a report with the United Nation's Food and Agriculture Organisation. "Despite the highly polarised debate, biofuels are not all good or bad,' lead author Lorenzo Cotula of the IIED wrote in the report. "Biofuels can either help or harm the world's poor depending on the choice of crop and cropping system, the business model, and the local context and policies.' Governments from the US to the European Union are backing alternative fuels to limit carbon-dioxide emissions from fossil fuels and oil imports. Grains such as corn have risen to records this year on rising demand for food, animal feed and biofuels. The FAO says biofuels caused 10% of the gains, while the International Monetary Fund estimates 20 to 30%. Biofuel projects have limited poor people's access to land in countries such as Tanzania, Mozambique, Brazil, India and Indonesia, the IIED said. That threatens domestic food supply and economic and social stability, the group said. "In many places the rush to produce biofuels takes place where local land rights are insecure, which results in poorer people losing out,' wrote Cotula, a senior researcher in law and sustainable development. "What are often lacking are both adequate land laws and the local people's capacity to claim and secure their rights.' The IIED expects growth in biofuels usage and supply to slow because of higher feedstock costs, rising investments in fossil fuels exploration and dwindling water supplies.