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Opening Up The International Biofuels Market
By Mr Ethanol | October 24, 2007
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UN Dispatch:
Trade in biofuels and biofuels feedstocks is currently too low. European and US systems of subsidies and incentives for domestic production and of tariffs for imported feedstocks and final products are, de facto, reducing the potential biofuels production in tropical and subtropical countries, where biomass productivity is significantly higher than in temperate regions such as Europe and North America (according to some estimates up to five times higher).
Brazil beside becoming the first producer of Ethanol, was able in the last 30 years to drive a flex technological revolution that contributed to its road to a complete development. Other examples of this dynamism are represented by those countries that without such internal markets are developing a biofuels industry that takes advantage of existing preferential trade agreements with US and Europe.
International trade, in fact, could provide win-win opportunities for all countries. For several importing countries, it is a necessary precondition for meeting self-imposed fuel blending targets; for exporting countries, especially small- and medium-sized developing countries, these markets are necessary to initiate their industries. Reducing and eliminating trade barriers and phasing out trade-distorting subsidies would contribute to establishing a level playing field. Investors in prospective biofuels export facilities need to be assured that markets are going to be open and that there will be scope for exports, allowing them to exploit economies of scale. More.
Topics: Biofuel, Market, News |
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