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Biofuels: The Once and Future Energy Source?

December 3, 2007

A briefing from the World Business Council on Sustainable Development, this paper discusses in depth the various factors that are shaping whether biofuels will become a reliable green future-fuel or another false start on the road to sustainable energy.

Biofuels such as wood and straw are the energy sources of our remote ancestors; will they become a primary fuel for our progeny? And will they be an environmental boon, limiting carbon emissions, or will they accelerate the crash of already threatened ecosystems?

The document, the first output from the Council’s new workstream on clean energy technology, provides an overview of biofuel production and use with a special focus on the transport sector. It describes first and second generation biofuels and explores their potential as a possible substitute for fossil fuels.

The Issue Brief tries to unpack key issues and analyze the many variables involved in biofuel policy to open debate by business on the main challenges for this energy source. Although intended primarily for a business audience, the brief provides a general understanding that could serve to inform the general public as well.

By 2050, energy demands are expected to more than double. Biofuels have the potential to meet some of that demand, but will need to be properly managed. If governments can create the right framework conditions through proper market incentives and other policy measures, biofuel production could have net positive environmental and social impacts.

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