April 7, 2008

UN calls for biofuel policy review on rocketing grain prices

The UN has called for a comprehensive policy review on biofuels as a crisis in global grain prices was partly caused by the use of crops for energy generation.

UN secretary-general, Ban Ki-moon, said during the Nato summit in Bucharest that there is a need to be concerned about the possibility of taking land or replacing arable land because of these biofuels.

However, just criticizing biofuel is not a good solution, Ban added. He pointed that the world has to constantly look at having creative sources of energy, including biofuels.

Since Ban took over from Kofi Annan, he has embraced the potential of biofuels, derived from plants, as a long-term substitute for fossil fuels.

However, food prices have soared and the cultivation of biofuels has come under scrutiny for diverting fertile land from food production.

UN food agencies are among those who have been vocal about the use of grain for biofuel.