23 October 2007 15:37 [Source: ICIS news]
In its second annual report on government support for biofuels in the
“Despite a growing awareness of both the fiscal and environmental concerns about biofuels, legislative support has not abated,” the study said, noting that proposals now before Congress would boost the
The report also is critical of legislative proposals to expand government support for cellulosic ethanol production, which is widely viewed as the second-generation ethanol technology that will bring more clear-cut energy and environmental benefits.
“As such, the new legislation compounds the current distortions to crop markets with a host of new programmes to underwrite production, harvesting, storage and the transport of cellulosic feedstocks,” the report said.
In addition to expanding subsidies and increasing production and use mandates, the group warns that “the
“Indeed, as is often the case with subsidies, current legislative proposals appear to entrench existing arrangements, which will ensure that the biofuels industry remains a significant drain on US taxpayers for decades to come,” said the report.
The institute recommended that the
($1 = €0.70)
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