Alumnus: Rising biofuel prices offer hope for world

There are nearly a billion people on the planet without a secure source of food, and the… There are nearly a billion people on the planet without a secure source of food, and the production of biofuels threatens a jump in that number, said a legal adviser to the U.N.

The issue surrounding biofuels is further complicated by environmental considerations and a worldwide desire for energy security, said Victor Mosoti, who works for the director-general of the U.N. Food and Agriculture Organization.

Mosoti, a Pitt Law School alumnus, gave the 17th annual McLean Lecture on World Law Tuesday night, discussing increased biofuel production worldwide.

Biofuels are a recent development in renewable energy production. Derived from corn, sugar cane, palm and soybean oils, they are used to replace fossil fuels for energy needs, he told the people gathered in the Barco Law Building.

Biofuel serves as an alternative to fossil fuels for many nations. They are often more economical than oil for transportation, and burning biofuels might reduce carbon emissions. The reduction might be as much as 87 percent for bioethanol and 78 percent for biodiesel, said Mosoti.

Biodiesel and bioethanol are the two major sources of biofuel in developed countries.

In the past few years, an increase in demand for biofuels has resulted in an increase in their production. Because of this, 1 percent of the world’s arable land has now been converted to biofuel production. by 2050, 20 percent of the world’s arable land might be converted to biofuel production, said Mosoti.

This jump in biofuel production has resulted in increased food prices worldwide, with dairy prices increasing the most. Higher food prices put people with lower or nonexistent incomes at further risk for starvation, said Mosoti.

The possible effect of that 20 percent loss of arable land on food prices is not yet known, he said.

Increased prices are promising for developing nations, particularly Brazil, where labor costs and other factors allow for cheaper production of biofuel. This brings an increase in trade to these nations and helps develop rural areas.

The United States has tried to protect domestic biofuel production by placing a tariff of 46.5 percent on imported bioethanol and 6.5 percent on imported biodiesel, said Mosoti.

Mosoti advocated an international consensus for the resolution of the issues involving biofuel. Particularly in resolving balancing fuel and food production, international trade disputes and government subsidizing of biofuel production.