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E.U. to Limit Food-Based Biofuel

Revised policy after food prices rise

The European Union is set to limit the use of crop-based fuels after studies showed they resulted in minimal emission savings and contributed to price increases in the cost of food. The new plan calls for crop-derived biofuel use to max out at five percent of energy consumption by 2020 from its current level of 4.5 percent. Additionally, the E.U. will move to end subsides for crop-based biofuels by 2020, threatening a $21.7 billion a year sector. Because the E.U. still aims to source 10 percent of fuel from renewable sources, it plans to increase production of biofuels made from household waste and algae.

Via Reuters

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Filed To: News