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and fishing communities. Under the strategy, the Japanese government is
implementing policies for significant deployment of biofuels (Government of
Japan 2006).
13.1.1.4 Energy Security and Biofuels
The UNEP reports that global production of ethanol for transport fuel increased
from 17 billion liters to 52 billion liters between 2000 and 2007, while biodiesel
increased from 1 billion liters to 11 billion liters in the same period. Biofuels altogether provided 1.8% of the world’s transport fuel, with ethanol providing 5.46% of
global gasoline use, while biodiesel provided just 1.5% of global diesel use (UNEP
2009). According to a joint report by the Organisation for Economic Co-operation
and Development (OECD) and the FAO, ethanol production is estimated to increase
to 159 billion liters by 2019 with biodiesel production increasing to 41 billion liters,
which, even considered together, will not account for a significant share of the overall consumption of transport fuel (OECD-FAO 2010). As a result, while the role of
biofuels from an energy security perspective varies by country depending on
national circumstances, biofuels do not play a major role from a global perspective.
However, the situation could change due to uncertain factors including future policies to promote biofuels, economic circumstances such as crude oil prices, environmental standards, developments in second-generation biofuel technologies, and
competition between food production and biofuel production from agricultural
resources.
13.1.1.5 Trade, North-South Issues, and Biofuels
Global international trade in biofuels only accounts for around one-tenth of all biofuel production, but global trade in ethanol fuels is estimated to have tripled from
less than 1 billion liters in 2000 to around 3 billion liters in 2007. The USA is the
world’s largest ethanol-importing nation, with Brazil the largest exporting nation.
More than 10% of all biodiesel production in 2007 was traded internationally, with
Indonesia and Malaysia being the major biodiesel exporting nations (World Bank a
2010).
The USA and EU have targeted domestic biofuel production in consideration of
their respective domestic biofuel use targets, and no countries other than Brazil currently have the production capacity to become major biofuel-exporting countries.
South and Central America and Africa have gaps between their biofuel production
potential and actual production and as such have the potential to become exporting
countries in the future. In India, trade opportunities are restricted by high tariffs.
Although OECD countries have low tariffs for biofuel imports, these countries
spend heavily on subsidies to protect their domestic agricultural industries.
Furthermore, it has been pointed out that regulations such as the EU’s sustainability
criteria serve as barriers to trade (World Bank a 2010).
13 Key Strategies for Policymakers
and fishing communities. Under the strategy, the Japanese government is
implementing policies for significant deployment of biofuels (Government of
Japan 2006).
13.1.1.4 Energy Security and Biofuels
The UNEP reports that global production of ethanol for transport fuel increased
from 17 billion liters to 52 billion liters between 2000 and 2007, while biodiesel
increased from 1 billion liters to 11 billion liters in the same period. Biofuels altogether provided 1.8% of the world’s transport fuel, with ethanol providing 5.46% of
global gasoline use, while biodiesel provided just 1.5% of global diesel use (UNEP
2009). According to a joint report by the Organisation for Economic Co-operation
and Development (OECD) and the FAO, ethanol production is estimated to increase
to 159 billion liters by 2019 with biodiesel production increasing to 41 billion liters,
which, even considered together, will not account for a significant share of the overall consumption of transport fuel (OECD-FAO 2010). As a result, while the role of
biofuels from an energy security perspective varies by country depending on
national circumstances, biofuels do not play a major role from a global perspective.
However, the situation could change due to uncertain factors including future policies to promote biofuels, economic circumstances such as crude oil prices, environmental standards, developments in second-generation biofuel technologies, and
competition between food production and biofuel production from agricultural
resources.
13.1.1.5 Trade, North-South Issues, and Biofuels
Global international trade in biofuels only accounts for around one-tenth of all biofuel production, but global trade in ethanol fuels is estimated to have tripled from
less than 1 billion liters in 2000 to around 3 billion liters in 2007. The USA is the
world’s largest ethanol-importing nation, with Brazil the largest exporting nation.
More than 10% of all biodiesel production in 2007 was traded internationally, with
Indonesia and Malaysia being the major biodiesel exporting nations (World Bank a
2010).
The USA and EU have targeted domestic biofuel production in consideration of
their respective domestic biofuel use targets, and no countries other than Brazil currently have the production capacity to become major biofuel-exporting countries.
South and Central America and Africa have gaps between their biofuel production
potential and actual production and as such have the potential to become exporting
countries in the future. In India, trade opportunities are restricted by high tariffs.
Although OECD countries have low tariffs for biofuel imports, these countries
spend heavily on subsidies to protect their domestic agricultural industries.
Furthermore, it has been pointed out that regulations such as the EU’s sustainability
criteria serve as barriers to trade (World Bank a 2010).
13 Key Strategies for Policymakers