Crude oil putting brakes on global economy

The Global Renewable Fuels Alliance (GRFA) reacted, stating that biofuels are able to both improve the global economy and environment. 

“Evidence shows that increasing global biofuels production will not only break our addiction to crude oil but positively impact our economy and our environment,” stated Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. 

The IEA report outlined the current “unsustainable energy system” that is “putting a brake on our economy” because the crude oil industry is receiving record subsidies and oil prices are still at an all time high. According to a GRFA commissioned report released earlier this year, the global biofuels industry contributed $277.3 billion to the global economy and supported nearly 1.4 million jobs in 2010. 

”We cannot continue to rely on and subsidize a dependence on crude oil that continues to hamper economic growth when biofuels are already making a significant contribution to the global economy,” added Mr. Baker. 

Today’s World Energy Outlook also forecasted that, “Global energy demand increases by over 1/3 in the period to 2035. Energy-related CO2 emissions rise from an estimated 31.2 gigatonnes in 2011 to 37 gigatonnes in 2035, pointing to a long term average temperature increase of 3.6° C.” 

The GRFA forecasts that ethanol production alone will reduce Green House Gas (GHG) emissions by 100 million tonnes globally. This is a reduction of 276,000 tonnes of GHGs per day, which is the equivalent of approximately 20.2 million cars being taken off the road per year. 

“Biofuels offer a positive economic boost and cleaner air. We must quickly adopt policies that encourage the development of crude oil alternatives like biofuels for the sake of our economy and environment,” concluded Baker. 

The World Energy Outlook presents authoritative projections of energy trends through to 2035 and insight into what it means for energy security, environmental sustainability and economic development. The report covers all energy sources, together with an update on climate change issues.