>From : International Herald Tribune Published: January 14, 2008

*PARIS <http://www.iht.com/articles/2008/01/14/business/biofuels.php#>:* In
a sign of shifting attitudes toward biofuels, European Union officials are
proposing to ban imports of certain fuel crops whose production could do
more harm than good in fighting climate change, according to a draft law
seen Monday.

The proposals, to be unveiled next week, are aimed at enhancing the
environmental credentials of biofuels like biodiesel or ethanol to counter
concerns that European drivers are playing a role in destroying wetlands,
forests and grasslands in areas like Southeast Asia or Latin America each
time they fill up their tanks.

In its draft, the EU requires that biofuels from crops grown on some kinds
of land covered in forest, wetlands and grasslands as of January 2008 should
be banned for use in the 27-nation bloc. The commission also would require
that biofuels used in Europe should deliver "a minimum level of greenhouse
gas savings."

The text, which could change before European commissioners meet Jan. 23 to
adopt a final version, also emphasizes that areas like rainforests and lands
with high levels of biodiversity should not be converted to growing
biofuels.

At the same time, the EU does not want to abandon biofuels because of the
contribution they could still make to increasing Europe's energy
independence.

"The problem is that we have no alternative to oil at the moment, and 90
percent of our transport in Europe depends on oil, making us extremely
vulnerable to foreign supplies," said Ferran Tarradellas Espuny, the
spokesman for the EU energy commissioner, Andris Piebalgs.

Europe is drafting its rules on biofuels amid rising prices for gasoline and
diesel and growing worries about climate change across the world. In recent
years, a number of countries have started growing and using fuels produced
from plants or agricultural waste.

In the United States, ethanol produced from corn has boomed, as has
sugar-cane ethanol in Brazil. In Europe and to a lesser extent in the United
States, vegetable oils have been converted into a type of diesel fuel by a
simple chemical procedure.

In principle, these biofuels promise not only to displace imported oil but
also to lower the amount of greenhouse gases being dumped into the
atmosphere. The crops absorb carbon dioxide, the main greenhouse gas, as
they grow, and the fuels made from them re-emit that same gas when they are
burned a few months later.

But it is turning out that fuel crops hold the potential for considerable
environmental harm.

Not only is native vegetation, including tropical rain forest, being chopped
down in some cases to plant the crops, but the crops also are often grown
using fossil fuels like diesel for tractors - and they demand nitrogen
fertilizer made largely with natural gas.

Moreover, turning the crops into fuels can demand huge amounts of water.

Experts say certain types of fuels, particularly those made from
agricultural wastes, still hold potential to improve the environment. But it
is only now becoming clear that to achieve that goal, governments will have
to set and enforce standards for how the fuels are produced.

With its new proposal, Europe appears to be moving ahead of the rest of the
world in that task.

In part that is because biofuels - a blanket term covering fuels grown from
crops to manufacture substitutes for diesel and gasoline - are the main
weapon foreseen by the EU to lower emissions from the transport sector,
which has the fastest growing levels of greenhouse gases among all sectors
of its economy.

The increasingly negative image of biofuels has left officials pulled in
separate directions - on the one hand trying to clean up the market for
biofuels that cause environmental damage while, on the other hand, seeking
to rehabilitate biofuels to meet ambitious greenhouse gas emissions targets
that have made Europe a world leader in tackling climate change.

The draft EU rules probably would have the biggest effect on growers of palm
oil in countries like Malaysia and Indonesia, according to Matt Drinkwater,
a biofuels analyst with New Energy Finance in London.

"Some proposed developments in Southeast Asia will almost certainly be
blocked by these provisions," he said, explaining that the rules would make
it much harder to plant on recently cleared land or export fuels to Europe
that emit significant amounts of greenhouse gases produced during the
process of manufacturing biodiesel from palm oil.

Growers of crops to produce ethanol - a substitute for gasoline that is more
commonly used in the United States than in Europe - also could be affected
because the EU rules contain previsions on preserving grasslands, said
Drinkwater. Crops for ethanol are grown widely in parts of South America,
including Brazil.

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