CONFÉRENCE DES NATIONS UNIES SUR
LE COMMERCE ET LE DÉVELOPPEMENT
UNITED NATIONS CONFERENCE
ON TRADE AND DEVELOPMENT
The UNCTAD Biofuels Initiative
Growing concerns about petroleum price fluctuations, energy independence and the climate
change ramifications of fossil fuel use have drawn substantial attention to biofuels - fuels derived from
biomass - as an alternative to meeting the world’s growing energy demand.
As both developed and developing countries attempt to carve out a place for themselves in the
emerging biofuels market, both supply and demand of these alternative fuels are expected to rise
dramatically. According to many, the unfolding of this energy revolution may have far reaching
consequences for agricultural production, world trade and development.
Biofuels present many opportunities for several developing countries that – with land to devote
to biomass production, a favourable climate to grow them, and abundant farm labour – are well placed
to become efficient producers.
Positive economic, social and environmental objectives might be fulfilled by increased
production, use and international trade of biofuels: biofuels might slow down the process of global
warming; they might provide an opportunity for developing countries to diversify agriculture
production, raise rural incomes and improve quality of life. They might enhance energy security and
reduce expenditure on imported fossil energy. They might boost technological developments.
Biofuels, however, also raise some concerns. A major preoccupation is that rapid growth in
demand for energy feedstock could divert too much cropland to fuel crops and jeopardize food security.
A related issue is the impact of rising prices of agricultural commodities on different segments of the
population in developing countries. Concerns also refer to the risk that increasing biofuels demand will
lead to the expansion of energy crops into land previously uncultivated or devoted to other uses. Risks
also include the switching to monoculture and the increasing use of pesticides. The conversion process from energy crops to biofuels - may also be environmentally-unfriendly. The negative effects of such
situations could possibly eclipse the greenhouse gas benefits of biofuels.
An increasing number of countries, including developing countries, are considering the biofuels
option. The UNCTAD BioFuels Initiative aims at supporting them.
While to "get it right" is essential for all countries and regions, developing countries should
benefit from special support, given that many of them are considerably vulnerable to climate change, are
highly dependent on foreign oil imports, have limited capacity to modify their energy portfolio, face
huge food security challenges, and have experienced slow progress in introducing policies that make
international trade an effective mechanism for poverty reduction.
The UNCTAD BioFuels Initiative is providing its membership with access to sound economic,
legal and trade policy analysis, capacity building activities and consensus building tools. The Initiative
is committed to be flexible and based on specific national circumstances and needs. It attempts to share
lessons from successful cases, as well as to illustrate problems encountered by developed and
developing countries alike in dealing with the technical, policy and economic aspects of biofuels. It
provides policy guidance, ideas and examples on how to address possible shortcomings that countries
might face when engaging in this new market.
The International Advisory Expert Group - composed by about 25 international experts - helps
the Initiative to carry out its tasks in a timely, efficient and technically sound manner.
The UNCTAD BioFuels Initiative is working closely with other intergovernmental
organizations, civil society, academia and the private sector. It participates in the activities carried out by
UN-Energy; the Global Bio-Energy Partnership (GBEP); and the Roundtable on Sustainable Biofuels.
Work Programme
Activities on biofuels are carried out through the three pillars of UNCTAD work:
• Analytical work
o Biofuels - Advantages and Trade Barriers, UNCTAD/DITC/TED/2005/1;
o The emerging biofuels market: Regulatory, trade and development implications,
UNCTAD/DITC/TED/2006/4;
o An Assessment of Projects on the Clean Development Mechanism (CDM) in
India, UNCTAD/DITC/TED/2006/5;
o An Assessment of the Biofuels Industry in India, UNCTAD/DITC/TED/2006/6;
o An
Assessment
of
the
Biofuels
Industry
in
Thailand,
UNCTAD/DITC/TED/2006/7;
o Opportunities and Challenges of Biofuels for the Agricultural Sector and the
Food Security of Developing Countries, forthcoming:
o From "first generation" to "second generation" feedstocks: trade and
development implications of technological changes in the biofuels industry,
forthcoming;
o Baseline methodologies for CDM projects in the biofuels sector (in cooperation
with UNEP-Risoe), forthcoming.
• Intergovernmental work
o Expert meeting on biofuels as a dynamic sector in world trade, Geneva, 30
November 2006. Report of the meeting: TD/B/COM.1/EM.31/3;
o Ad Hoc Expert Meeting on the trade and development implications of present
and emerging technologies in the biofuels sector, Geneva, 19 June 2007;
o Side-event on the trade and development implications of biofuels within
UNCTAD XII, Accra, Ghana, April 2008.
• Capacity-building work
o Advisory expert mission to Guatemala to support the country in setting up a
National Programme on Biofuels, 28-30 March 2007;
o Similar missions are scheduled in Africa and Asia
UNCTAD Biofuels Initiative team:
Lucas Assunção
Simonetta Zarrilli
Lalen Lleander
For more information and for downloading offcial documents, please visit
www.unctad.org/biofuels or contact:
Ms. Lalen Lleander (lalen.lleander@unctad.org)
Palais des Nations, Avenue de la Paix 8-14
1211 Geneva 10, Switzerland
Fax: + 41 22 917 0044