Over the past few weeks, a lot of concern has been expressed over the government's Biofuel Bill, which is currently before the Local Government and Environment Select Committee. The bill establishes a biofuels sales obligation on fuel companies, requiring them to sell an increasing percentage of biofuels, whether pure or blended in to other fuels. However, critics have pointed out that many biofuels are not produced in a sustainable manner, and may actually result in higher emissions, particularly if land is deforested to grow them, or they are produced by intensive farming practices in the United States. And now the Parliamentary Commissioner for the Environment has joined the chorus, arguing that the bill should not be passed in its current form and that a sustainability standard is needed.
I agree, but given the objectives of the bill, I think the changes needed are minor. First, we need to keep in mind that while it sets targets, the initial aim of the bill is to not to bring biofuels into widespread use, but to force fuel companies to establish the distribution infrastructure needed for their widespread use in the future. This will be a long-term investment, and if we want to have the option of using sustainable biofuels in five or ten years time, then we need to start making these changes sooner rather than later. We cannot afford to wait until the promise of ethanol from trees is fulfilled. Secondly, while the bill allows fuel companies to import biofuels (and Gull already imports biodiesel from Australia), it is also aimed at promoting domestic production by creating a market. On both fronts, its really about getting around the chicken and egg problem of "no market = no production/infrastructure = no market" - something we need to do as quickly as possible.
Given the low initial targets, we can afford to live with a little unsustainability in the first few years until a robust sustainability standard can be developed. But it is important that the bill includes provisions for such a standard to be imposed in the near future. The easiest way of doing this is to provide a general power for the Minister to set sustainability standards by Order In Council, along with a requirement that such standards be in place within two years of the bill coming into force. But delaying the bill at this stage will push back even further the date when we can have sustainable biofuels in wide use. And I don't think that's the most sustainable path in the long term.
