The Canadian Renewable Fuels Association is outraged by a public policy think-tank report calling for the elimination of biofuel subsidies.
The Canadian Centre for Policy Alternatives released its report Feb. 5 stating that governments can no longer afford such “expensive and wasteful” support programs.
“With federal finances sliding into deficit for the first time in a decade, will the Harper government cut provincial transfers for health and social programs while maintaining multibillion-dollar biofuel subsidies?” said report author Edward Boyle.
Gordon Quaiattini, president of the Canadian Renewable Fuels Association, said the left leaning group is living in a fantasy land. It also condemns the oil industry.
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“In a world in which we hopefully can perfect the open-air, rock-wheeled Flintstone vehicle, we’ll all have something to drive in the future,” Quaiattini said sarcastically. “That’s exactly what I think about their report.”
Boyle said ethanol and biodiesel subsidies and mandates are bad policy because they provide benefits to few people, have led to a dramatic hike in food prices and prop up an industry that increases greenhouse gases once all the energy impacts are taken into account.
Quaiattini said those accusations are unfounded. He said the federal government has conducted an analysis proving a positive net energy balance in the production of biofuel.
To suggest biofuel has caused the runup in commodity prices and consequently food prices ignores the fact that food prices have stayed the same while commodity prices have plummeted in recent months despite more biofuel being produced today than six months ago during the height of the food versus fuel debate.
In his report, Boyle calls on the academic community, non-government organizations, researchers and aid agencies to expose the vulnerabilities of the biofuel sector.
The first step would be to convince politicians to impose a moratorium on new or expanded ethanol and biodiesel blending mandates.
The next step would require a collective effort by the organizations to persuade governments to eliminate biofuel subsidies altogether.
