ABSTRACT

Concern in important consuming markets about the sustainability of biofuels producing systems is putting pressure on suppliers to abide by sustainability protocols subject to certification. The sustainability of biofuels is actually linked to freer international trade, which would tend to phase out unsustainably produced biofuels in favour of regions of the world that can meet sustainable production requirements. A valuable discussion on this matter was hosted by the Rockefeller Foundation in 2008 at its Bellagio Centre and produced a sustainable biofuels consensus. The objective was to understand the many drivers for sustainable trade, consumption and production of biofuels, and the comparative advantage of supplying regions combined with demand and technology from consuming regions. However, much remains to be done to achieve free international trade of biofuels. The World Trade Organisation Doha rounds have reached an impasse. Currently, biodiesel is considered an industrial product, whereas fuel ethanol is categorised as an agricultural product, which allows more protectionism. What is needed is a unified treatment of biofuels, where they are classified under environmental goods and services. But, irrespective of these drawbacks, a sign pointing to a larger role for biofuels in the future are the new biofuels technology initiatives by large oil companies, such as BP, Chevron, Exxon and Shell. The development of the international trade in biofuels is likely to distribute more evenly the production and consumption of biofuels in the world. For the time being, biofuels production is overwhelmingly concentrated in the USA, Brazil and the European Union.