A perspective of global biofuel policies

Biofuels have drawn the attention of policymakers as a medium to address concerns of energy security, climate change and socio-economic development. The paper examines the biofuel policies of the major biofuel producing nations and analyzes the key instruments being adopted by them during the last decade such as blending mandates, financial incentives, subsidies, import tariffs, greenhouse gas (GHG) emission and carbon trading. The countries are categorized by continent and covers Asia (India, China, Malaysia, Indonesia and Thailand), Europe (European Union, Germany and France), South America (Brazil, Argentina), North America (USA, Canada) and Australia. The paper assesses whether the blending mandates had the desired impact on realization of policy targets and examines the impact of biofuel policies on the socio-economic development and environmental sustainability in these nations. Most countries continue to use sugarcane, corn, grains, and vegetable oils as feedstock for biofuel production thereby raising concerns about their adverse impact on food prices and food availability to the underprivileged people. Biofuel policies for this paper refer to policy instruments, strategies and programs which were established to aid and manage the production and consumption of biofuels - both ethanol and biodiesel.