THE HAGUE (Reuters) – Policymakers should be cautious of biofuels’ effect on food costs, Dutch Agriculture Minister Gerda Verburg said, emphasizing the need to develop new non-food raw materials.
First-generation biofuels are usually made from crops such as grains and vegetable oils but have raised concerns that they are driving up food prices and could lead to shortages.
Many see the solution as so-called second generation biofuels which are not yet commercially viable but involve the breaking down of non-edible crops such as fast growing grasses or trees by enzymes to eventually create liquid motor fuel.
“We need the experience (of first generation biofuels) but we have to be cautious,” Verburg said in an interview with Reuters on Monday.
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