Brazil draws biofuel battlelines

The Brazilian president yesterday rejected criticism of the country's booming biofuel industry, claiming attacks on the sector were driven by economic and political factors.

Speaking at a conference of the UN's Food and Agriculture Organisation (FAO) in Brasilia, Luiz Inacio Lula da Silva said those arguing that demand for biofuel is driving up food prices are guilty of ignoring the role of rising oil prices and increased demand for food from China and India.

"Do not tell me, for the love of God, that food is expensive because of biodiesel," he told reporters. "Food is expensive because the world was not prepared to see millions of Chinese, Indians, Africans, Brazilians and Latin Americans eat. We want to discuss this not with passion but rationality and not from the European point of view."

He added that far from being a "villain" biofuels can "pull countries out of energy dependency without affecting foods".

The president also hit back at recent accusations from Jean Ziegler, the UN's special rapporteur for the right to food, that using crops for fuel instead of food represent a "crime against humanity".

"The real crime against humanity is to discredit biofuels a priori and condemn food-starved and energy-starved countries to dependence and insecurity, " Lula said.

The president's counter attack comes as criticism of biofuels reached something of a crescendo this week following a series of protests around the world highlighting biofuels' impact on food prices and the environment.

Speaking earlier this week, UK chancellor Alistair Darling said that an urgent review of global biofuel policy was required to help address food shortages, adding that he had asked the World Bank to compile a report on the topic ahead of June's meeting of G7 leaders.

His comments were followed by a fresh commitment from the EU's environmental chief, Stavros Dimas, that biofuels imported into the EU to meet its targets of ensuring 10 per cent of transport fuels come from renewable sources, would have to meet strict environmental standards that ensure energy crops are not grown on plantations that have contributed to deforestation.

Critics claim that the increased need for agricultural land caused by growing demand for energy crops is resulting in deforestation that more than cancel out any environmental benefits the fuel is supposed to deliver.

The Brazilian government has countered that it has enough unused land to meet demand for biofuels without clearing rainforest areas and insists higher oil prices and increased demand for food from the emerging middle classes of China and India are having a far greater impact on food prices.

In related news, reports emerged that the Brazilian government is planning to launch a $200m (£100m) fund to help avoid further deforestation in the Amazon.