Biofuels - liquid fuels derived from plant materials - are entering the market, driven by factors such as oil price spikes and the need for increased energy security. However, many of the biofuels that are currently being supplied have been criticised for their adverse impacts on the natural environment, food security, and land use.
The challenge is to support biofuel development, including the development of new cellulosic technologies, with responsible policies and economic instruments to help ensure that biofuel commercialization is sustainable. Responsible commercialization of biofuels represents an opportunity to enhance sustainable economic prospects in Africa, Latin America and Asia.
Biofuels offer the prospect of increased market competition and oil price moderation. A healthy supply of alternative energy sources will help to combat gasoline price spikes and reduce dependency on fossil fuels, especially in the transport sector. Using transportation fuels more efficiently is also an integral part of a sustainable transport strategy.