Biofuel and biomass Friends of the Earth believes that the use of biomass as an energy source should be part of the climate change solution as long as it is developed in a truly sustainable way. The growth of new biomass takes carbon dioxide out of the air to compensate for the carbon added when biomass is burnt. The use of biomass as part of the sustainable energy mix therefore has potential benefits. The risks It is important to remember that the potential for using biomass to reduce emissions is strictly limited and there is no substitute for cutting emissions at source. It must also be recognised that failure to undertake a cautious, sustainable approach to the development of the biofuel and biomass market will do more harm than good. Risks include: • Increasing the emission of climate change gases rather than helping to curb them • Damaging food security • Damaging ecosystems and biodiversity • Exacerbating social conflict Palm oil Palm oil is the second most traded vegetable oil crop in the world, after soy4, and over 90% of the world’s palm oil exports are produced in Malaysia and Indonesia5. Palm oil is still mostly used in the manufacture of food products and is found in one in ten products sold in UK supermarkets.6 However, palm oil is now starting to be used as an ingredient in bio-diesel and as a fuel to be burnt in power stations to produce electricity. This is a new market for palm oil which has the potential to dramatically increase global demand for this commodity. The development of the oil palm industry in Indonesia and Malaysia has brought economic benefits to both these countries. However it has also generated considerable environmental and social costs. The development of oil palm plantations is one of the biggest causes of rainforest clearance. The palm oil industry has already set up 6.5 million hectares of oil palm plantations across Sumatra and Borneo but it is estimated that it is probably responsible for the destruction of 10 million hectares of rainforest.7 By clearing the forest first, plantation companies can offset the start up costs of their plantations. The profits are so large that some oil palm companies clear the land and don’t even bother to set up the plantation. There is therefore a strong incentive for oil palm companies to seek concessions and access to land that is heavily forested. Oil palm plantation development also poses the greatest threat to the survival of many species, including the orang-utan. Oil palm plantations could be responsible for at least half of the observed reduction in orang-utan habitat in the decade between 1992 and 2003.8 Tropical deforestation due to agricultural expansion, logging and infrastructure development already contributes between 10 and 30 per cent of greenhouse global emissions…

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