British report calls for new look at biofuels

Steps need to be taken to ensure that using biofuels to fight climate change does not cause a surge in food prices, a British government report on food policy said on Monday.
"Some biofuels can potentially play an important role in tackling climate change, but we must ensure that they are sustainable and that they do not distort food markets," said the report, published as a summit of the Group of Eight rich nations in Japan discussed food prices.
Another British report on biofuels is expected to be released later on Monday, drawing more attention to the issue of diverting food crops to make fuel, which hunger campaigners say is partly responsible for a surge in prices.
The European Union's proposal to get 10 percent of road transport fuels from renewable sources, such as biofuels, by 2020 has faced growing criticism.
Biofuels are mainly produced from food crops such as wheat, maize, sugar cane and vegetable oils. The rush to grow crops for energy rather than food has pushed global food prices up by 75 percent, according to a confidential World Bank report published in Britain's the Guardian newspaper last week.
The food policy report said more research needed to be done to understand the link between biofuels and food prices.
"The government is taking steps to ensure that interactions between biofuel policies and food markets are better understood -- so that policies can be adjusted if necessary."
Less food waste was also essential to mitigate soaring food prices, added the report, published by the Cabinet Office.
As much as 40 percent of food harvested in developing countries can be lost before it is consumed due to inefficient processing, storage and transport.
By Katherine Baldwin and Nigel Hunt

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