The single most expensive environmental initiative put forward by Canadian Prime Minister Stephen Harper (Conservative) was a biofuels initiative that is now seeing significant new opposition. The CDN$2.2 billion (about a $1 trillion at current exchange rates) was intended to provide incentives for biofuel development north of the border. However, recent spikes in food prices and criticism of using food crops to make transportation fuel has caused some who previously supported the plan to switch sides.

Opposition International Development critic (Liberal) Keith Martin went as far as calling for a moratorium on biofuel subsidies until the problems are better understood. NDP members of parliament also opposed the plan while the Bloc Quebecouis officially supports it. However, Bloc environment critic Bernard Bigras is opposed to the use of corn ethanol. Conservative Environment Minister John Baird is arguing in favor of the legislation and says that $500 million of the total is set aside for research into next-generation biofuels such as cellulosic ethanol. The legislation looks likely to pass regardless of the new opposition, although an amendment to the bill calls for a review of the environmental and economic impact of the 5 percent ethanol target one year after the law passes.

[Source: Globe and Mail]

The EU's Direct Payments Management Committee has listened to the European Commission and is cutting subsidies for biofuel crops. These subsidies were created to support these crops as long as they didn't reach 2 million Ha. This figure will be exceeded before the year is out.

If you wonder how much money that was, farmers got 45 EUR per Ha, as long as the production was agreed to be sold for producing biofuels. This help has been adjusted and farmers will only receive subsidies for 70 percent of the land. This percentage will be changed if the allocated budget (90 million EUR) runs out.

This policy was established in 2003, before the latest 10 countries joined the EU, countries that have increased the total number of biofuel crop acres in the Union. While in 2004, biofuel crops were grown on 0.31 million Ha, and the figures have increased steadily: 0.57 million in 2005, 1.23 million in 2006 and 2 million estimates for 2007.

The European Commissioner for Agriculture, Ms. Mariann Fischer Boel said that this measure has fuelled the European biofuel industry but the EU has yet to decide if it's still necessary for the new budget.

Related:

• $30 million more for bioenergy research centers from the DOE
• European Parliament demands sustainability certification for biofuels
• How to pick the best biofuel crop to grow

[Source: Europa Press via Econoticias]