ABSTRACT
This chapter analyses the biofuels and oil markets on a global and African scale, as well as the drivers behind the global and local demand for biofuels. It presents the history of biofuels and current biofuel policies, and highlights the implications for Africa. The chapter discusses the current situation the oil and biofuels market both globally and in Africa, and focuses on the economics of biofuel production. Interest in biofuels has once more increased, primarily driven by concerns about energy security, resource scarcity and increasing oil prices. The Brazilian experience shows that the most successful biofuel industry was enabled by more than 30 years of experience, appropriate agricultural conditions, long-term government support and technological breakthroughs. The adoption of targets for the use of renewable fuels in the transport sector is a key component of the EU’s efforts towards achieving its ambitious CO2 reduction goals.
