Good News for Ethanol in OECD Report

The Organization for Economic Cooperation and Development (OECD) report on biofuels policies out this week claims that that biofuel production “has a limited impact on reducing greenhouse gases and improving energy security, and has a significant impact on world crop prices.” However, an analysis of the findings indicates the opposite. According to a review of the report by the Renewable Fuels Association, the “OECD data does not support the conclusions of the report or a call by OECD officials for a moratorium on biofuels.” For instance, OECD credits ethanol produced from corn starch with a 30% reduction in greenhouse gas (GHG) emissions if using natural gas, and a 50% reduction in GHG if the facility is powered by biomass. Based on this finding, a moratorium is not warranted. In addition, the modeling included in the report... [read full story]