INTAL: Toward a North-South Green Energy Alliance - Luis Alberto Moreno, IDB President

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Toward a North-South Green Energy Alliance - Luis Alberto Moreno, IDB President

The debate on biofuels and energy safety has reached a crossroads. Perceptions in Europe and the United States have fluctuated from enthusiasm to alarm at a series of reports underlining the high cost of biofuel subsidies and the negative impact on food prices and land and water use. Many environmental and agro-industrial groups have recently come out against the expansion of biofuel production. Recently, one high-ranking UN official even went as far as to propose a global moratorium on biofuel projects. Such positions are understandable from the standpoint of industrialized countries, with mild climates and limited agricultural land. Bio-fuels in the Northern hemisphere are obtained from corn and rapeseed (colza; canola oil), which have low energy yields and require costly inputs. And as most arable land in the North is cultivated, they are likely to come into increasing competition with food crops should expansion continue.

The North needs biofuels but its capacity to produce them is limited; the South has land, favorable weather conditions, and abundant rural manpower but lacks the investment in capital and technology. Broadly speaking, a “Sustainable Energy Free Trade Regime” would acknowledge this reality and tap market forces to help face one of the greatest challenges of our day.

Note EU-Digest: There will be an IDB conference in Miami from April 4 to April 8 covering a variety of issues including the production of alternative energy.