2/12/05  (Soyatech.com) - Tropical rainforests are being destroyed to grow soya beans and palm oil to fuel cars and power stations in Europe and North America.

The destruction is being accelerated by rapidly rising oil prices. European Union legislation is in part responsible for the rush to produce energy from vegetable oils, as it requires conventional fuels to be blended with biofuels and by subsidies equivalent to 20 pence/litre. In Nov 2005 the UK government announced a target for biofuels to make up 5% of transport fuels by 2010.

The international price of palm oil has increased significantly. Rapeseed oil prices have increased too. In Sep 2005 alone palm oil prices increased 20%, while global demand for biofuels is currently increasing at a rate of 25%/y.