IMF: Making Fuel From Food Crops Is A Very Bad Idea
Most of us don’t need some international bureaucracy to tell us that, but maybe this will get some of the politicians like Obama to listen (it’s worth noting that McCain is very anti-ethanol).
With many developing nations experiencing deep shocks and citizen unrest due to rising food and fuel prices, plenaries and breakout sessions during the Program of Seminars addressed causes, effects and solutions.
Commitments by members of the Organization for Economic Cooperation and Development (OECD) to reduce carbon emissions through alternative fuels development, while well meaning, have exacerbated the global food crisis and contributed to world-wide water shortages, said Nestle chief executive Peter Brabeck-Letmathe.
The resulting drop in agricultural productivity has led to price increases, he said. “Water scarcity will be the most constraining element,” to additional production, he predicted. Replacing fuel with biofuel is “a very, very bad idea.”
Replacing even 6 percent of total fuel usage with biofuel would require doubling agricultural production to maintain current output. “Where are you going to get the land and the water for this? This is irresponsible policy,” Brabeck-Letmathe said. If the US alone would reverse its policy to replace fuel with biofuels, food prices would stabilize, he stated.
Meanwhile, here in America, the federal government is set to bail out corn-based ethanol plants at a cost of tens of millions to the taxpayers.
At some point, we’re going to have to realize that the government can’t subsidize and mandate our way to the fuel of the future.
