Soaring oil prices and growing environmental constraints is forcing the world to look for alternative sources of energy and switch to renewable bio-energy sources such as sugarcane and sunflower seeds, a United Nations agency says.
The Food and Agriculture Organization estimates that bio fuels would meet around 25 per cent of the world energy demand within 15 to 20 years. A positive and desirable effect would improve the rural economies and provide opportunity to countries to diversify their energy sources, it says.
"The gradual move away from oil has begun," new assistant director-general for FAO's Sustainable Development Department Alexander Muller opines.
"At the very least it could mean a new lease of life for commodities such as sugar whose international prices have plummeted," FAO's Senior Energy Coordinator Gustavo Best says.
Factors pushing for such a momentous change in the world energy market include environmental constraints such as increased global warming and the Kyoto Protocol's curbs on emissions of carbon dioxide and other greenhouse gasses as well as a growing perception by governments of the risks of dependence on oil.
"Oil at more than $70 a barrel makes bio-energy potentially more competitive," Muller says.
"Also, in the last decade global environmental concerns and energy consumption patterns have built up pressure to introduce more renewable energy into national energy plans and to reduce reliance on fossil fuels"
FAO highlights Brazil as an example for the rest of the world. Latin America's largest country is the world's biggest producer of bio-ethanol and one million Brazilian cars already run on fuel made from sugarcane, with most new cars powered by 'flex fuel' engines.
Introduced three years ago, they use either gasoline or bioethanol, or any mix of the two.
Europe lags well behind Brazil in bio-ethanol production and consumption, but the European Union has set itself the target of increasing the share of bio-fuels in transport to eight per cent by 2015. However, if oil prices stay high, things could move even faster, FAO notes.
Europe is already the world's largest producer of bio-diesel, now made from rapeseed, soya or sunflower seeds.
"The beauty of bio-energy is that production can be tailoured to local environments and energy needs," Best says.
"Where there's land, where there's farmers, where there's interest, bio-energy may be the best option. And if we add some sound analysis and good business models, we will get that option right.
But he stressed that FAO is focusing on the likely benefits for small farmers. One hazard is that large-scale promotion of bio-energy relying on intensive cash-crop monocultures could see the sector dominated by a few agri-energy giants, without any significant gains for small farmers.
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