World Bank Says to End Biofuels Subsidies

World Bank Says to End Biofuels Subsidies

A new study from 10 international agencies say the policies drive up food prices, say reports.

Kevin Bullis

A document prepared for the G20 governments by the World Bank, the World Trade Organization and eight other international agencies says that governments should stop subsidies for biofuels, according to reports this week.
From Reuters:

Governments should scrap policies to support biofuels because they are forcing up global food prices, according to a report by 10 international agencies including the World Bank and World Trade Organization.. . .
"If oil prices are high and a crop's value in the energy market exceeds that in the food market, crops will be diverted to the production of biofuels, which will increase the price of food," said the report.

The report bolsters a movement to stop or reduce ethanol subsidies in the United States and elsewhere. While the ethanol industry disputes the impact of biofuels on food prices, citing economic analyses, other studies have questioned the benefits of biofuels, saying that in addition to driving up food prices, they could increase greenhouse gas emissions and contribute to water shortages.