LONDON—Steps need to be taken to ensure that using biofuels to fight climate change does not cause a surge in food prices, a British government report on food policy said on Monday.
"Some biofuels can potentially play an important role in tackling climate change, but we must ensure that they are sustainable and that they do not distort food markets," said the report, published as a summit of the Group of Eight rich nations in Japan discussed food prices.
Another British report on biofuels is expected to be released later on Monday, drawing more attention to the issue of diverting food crops to make fuel, which hunger campaigners say is partly responsible for a surge in prices.
The European Union's proposal to get 10 percent of road transport fuels from renewable sources, such as biofuels, by 2020 has faced growing criticism.
Biofuels are mainly produced from food crops such as wheat, maize, sugar cane and vegetable oils. The rush to grow crops for energy rather than food has pushed global food prices up by 75 percent, according to a confidential World Bank report published in Britain's the Guardian newspaper last week.
The food policy report said more research needed to be done to understand the link between biofuels and food prices.
"The government is taking steps to ensure that interactions between biofuel policies and food markets are better understood—so that policies can be adjusted if necessary."
Less food waste was also essential to mitigate soaring food prices, added the report, published by the Cabinet Office.
As much as 40 percent of food harvested in developing countries can be lost before it is consumed due to inefficient processing, storage and transport.
Britons waste 4.1 million tonnes of food every year, costing 420 pounds ($828) for the average family, the report found.
Prime Minister Gordon Brown, who commissioned the study, also called for increased production in developing countries.
"If food production in Africa and elsewehere in the developing world reached its potential, global food output would be much higher, far fewer people would go hungry and the threat of food-related political and social instability around the world would recede," Brown said in a statement.
The Case for Biofuels
At the moment, Britain already requires suppliers of motor fuels to ensure 5 percent comes from renewable sources by 2010, half way toward the EU target of 10 percent by 2020.
But Brown signalled a possible policy change in April, saying he would push for changes in EU targets if the Gallagher review, to be published later on Monday, showed more biofuel production was boosting food prices and harming the environment.
European Union energy chiefs also backed away from the controversial 2020 targets when they met in Paris on Saturday, saying there were other renewable sources besides biofuels which could power road transport.
"There is so much evidence about the negative impacts of biofuels that setting mandatory targets seems unconscionable," said Phil Bloomer from campaign group Oxfam.
"And yet that's what the UK has done, thereby sending a signal to the markets and the private sector that demand is here to stay, and keeping prices high. The EU must not follow suit."report
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