Ethanol comes at the price of ethics
Friday, 03 April 2009.
The recent high price of oil, the security advantages of increased domestic production, the environmental benefits through reduced greenhouse gas emissions, and the potential for economic development have all contributed to a greatly increased interest in biofuels.
On Wednesday, the Biofuel (Ethanol Content) Amendment Bill was passed in Parliament. The Bill provides for increases to mandated minimum ethanol content for total petrol sales in New South Wales. The Bill states that from July 2011 regular unleaded petrol sold in the State by primary wholesalers must contain ten percent ethanol.
During the Second Reading debate, Rev the Hon. Dr Gordon Moyes AC MLC highlighted the problem of the expansion of the biofuel industries in industrialised countries to the detriment of poorer nations which has led to the reduction in food supplies as developing countries convert food crops to fuel.
While Dr Moyes supported and acknowledged the Government’s commitment to reduce greenhouse emissions, he stated: “It is vital to reduce our reliance on coal, it is critical that we have a more stable source of energy, and it is important that we develop the State’s regional areas; but we have a sense of obligation to our poorer neighbours.”
Dr Moyes continued: “We have seen the G20 leaders discussed the solutions for the Global Economic Crisis. If national governments do not take this issue seriously, we will have a Global Food Crisis and the impacts will be more drastic and severe. And we have already seen it in food riots in Haiti, Egypt, Morocco, Uzbekistan, Yemen, Guinea, Mauritania, Senegal, the Philippines and even Italy.”
A 2008 World Bank research report found that from 2002 to 2008 large increases in biofuels production in the United States and Europe are the main reason behind the steep rise in global food prices.
Dr Moyes said, “For instance, 34 percent of the world’s largest crop (United States corn) will produce fuel and not food. Such biofuel policies have also increased Australian grain prices because 80 percent of our grain is exported, and United States corn exports represents more than 60 percent of world trade. The Food and Agricultural Organization has seen prices it pays for maize rise by up to 120 percent in the past six months in some countries.”
Dr Moyes added: “Both the Federal and NSW Government must invest in second generation biofuels as an alternative source of energy. The expansion of biofuels is threatening world food production and the lives of 852 million gravely undernourished men, women and children.”
“The prospect of food shortages must be tackled immediately. A concerted effort is needed to address this potential global catastrophe”, Dr Moyes concluded.
END.
