Epsilon Open Archive

Abstract

The key drivers for the rising interest in liquid biofuels differ between countries. In general, rich countries see the outlook of rising prices for fossil fuels and the need for reducing carbon emissions. Most developing countries need increased energy security and development. While the rich countries' needs require production for export, the developing countries might fulfil their needs more sustainably with production for domestic use. There is potential for win win solutions but there are also challenges to be aware of, as well as recommendations of what needs to be in place for the small holders, and the environment on which they depend, not to loose out on another mono crop system. Donors can play an important role when it comes to supporting these recommendations.

There is rising concern about the effects of rapid expansion of biofuel investment, on the environment and people in production countries. In developing countries, biofuel production is likely to have an impact within rural development, energy security, agriculture, water management, food security and ultimately; poverty reduction. Therefore, in 2008, Sida commissioned SwedBio and the Sida Helpdesk for Environmental Assessment at the Swedish University for Agricultural Sciences in Uppsala, to produce a fact sheet to summarise the main challenges and concerns that need to be addressed. The Fact Sheet would also provide recommendations on what to consider and how, to reach a positive development for people and the environment in developing countries. This summary report forms the background material produced for the Fact Sheet.