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4 International Bioeconomy Governance …
the question of why biofuel production and consumption have expanded globally
in the particular way they have. It first maps out the global setting and identifies
the major biofuel producers and consumers. The chapter then analyzes the existing
architecture created for international biofuel governance, examines what distributive
outcomes and social impacts have emerged, and assesses the forms of agency already
at play. The last section integrates these analyses to unveil the patterns being set in
place for the emerging global bioeconomy governance.
4.1 The Global Setting of Biofuel Expansion
Biofuel policies, production and consumption have spread fast across the globe. By
2018, more than 70 countries—over one-third of the world—had biofuel consumption mandates in place, in addition to sub-national governments and countries without
clear mandates but having policy incentives to production (REN21 2019). However,
globally the ethanol and biodiesel sectors are very much dominated by a few major
players. Together, the United States (US), Brazil, and the European Union (EU)
account for more than 80% of the world’s production of liquid biofuels and an
even larger share of their consumption. The US and Brazil remain by far the largest
producers, particularly of ethanol. The EU previously led in biodiesel production,
pulled primarily by Germany and France, but it has gradually moved away from
it. In contrast, outputs in emerging countries such as Indonesia and Argentina have
become increasingly important (see Fig. 4.1). The following paragraphs look into
the biofuel production contexts of those major players.
4.1.1 United States (US)
The US is by far the world’s largest biofuel producer, most of it (89%) being corngrain ethanol, and to a much smaller extent, soybean biodiesel (which has animal
feed as a co-product) (REN21 2019). Ethanol has consistently utilized about 40%
of the US corn, whose supply increase since 2010 has nearly all been used by the
biofuel industry (OECD/FAO 2019; USDA 2020). Meanwhile, a growing share of its
vegetable oil (from 11% in 2011 to 20% by 2018) has been converted into biodiesel
(OECD/FAO 2013, 2019). Still, biofuels make up only 5% of the energy used for
transportation in the US (EIA 2020).
The US has had a large-scale biofuel promotion policy since 2007, with consumption mandates in place and forecasts of an increase in production (OECD/FAO 2019),
but much of the context has changed since that year of peak oil price. For one, the
US has moved from a position of energy insecurity—concerned with its dependency
on oil imports from Venezuela and the Middle East—to become the world’s top
producer of fossil fuels and a significant exporter, thanks to shale oil and gas. While
this controversial “shale revolution” is widely advertised as a bridge to a low-carbon
4 International Bioeconomy Governance …
the question of why biofuel production and consumption have expanded globally
in the particular way they have. It first maps out the global setting and identifies
the major biofuel producers and consumers. The chapter then analyzes the existing
architecture created for international biofuel governance, examines what distributive
outcomes and social impacts have emerged, and assesses the forms of agency already
at play. The last section integrates these analyses to unveil the patterns being set in
place for the emerging global bioeconomy governance.
4.1 The Global Setting of Biofuel Expansion
Biofuel policies, production and consumption have spread fast across the globe. By
2018, more than 70 countries—over one-third of the world—had biofuel consumption mandates in place, in addition to sub-national governments and countries without
clear mandates but having policy incentives to production (REN21 2019). However,
globally the ethanol and biodiesel sectors are very much dominated by a few major
players. Together, the United States (US), Brazil, and the European Union (EU)
account for more than 80% of the world’s production of liquid biofuels and an
even larger share of their consumption. The US and Brazil remain by far the largest
producers, particularly of ethanol. The EU previously led in biodiesel production,
pulled primarily by Germany and France, but it has gradually moved away from
it. In contrast, outputs in emerging countries such as Indonesia and Argentina have
become increasingly important (see Fig. 4.1). The following paragraphs look into
the biofuel production contexts of those major players.
4.1.1 United States (US)
The US is by far the world’s largest biofuel producer, most of it (89%) being corngrain ethanol, and to a much smaller extent, soybean biodiesel (which has animal
feed as a co-product) (REN21 2019). Ethanol has consistently utilized about 40%
of the US corn, whose supply increase since 2010 has nearly all been used by the
biofuel industry (OECD/FAO 2019; USDA 2020). Meanwhile, a growing share of its
vegetable oil (from 11% in 2011 to 20% by 2018) has been converted into biodiesel
(OECD/FAO 2013, 2019). Still, biofuels make up only 5% of the energy used for
transportation in the US (EIA 2020).
The US has had a large-scale biofuel promotion policy since 2007, with consumption mandates in place and forecasts of an increase in production (OECD/FAO 2019),
but much of the context has changed since that year of peak oil price. For one, the
US has moved from a position of energy insecurity—concerned with its dependency
on oil imports from Venezuela and the Middle East—to become the world’s top
producer of fossil fuels and a significant exporter, thanks to shale oil and gas. While
this controversial “shale revolution” is widely advertised as a bridge to a low-carbon