17/01/2008 (The Register, Australia) - Australia should act to introduce strict guidelines to ensure that biofuels sold or manufactured here, are not causing environmental problems elsewhere, a spokesperson for the Palm Oil Action Group said today.

In Indonesia alone, rainforest clearance is currently occurring at the staggering rate of 300 football fields an hour, and the major driver of this destruction is the demand for palm oil, which is used in food, cosmetics and biodiesel.

“It makes no sense for the Australian government to provide financial incentives to encourage rainforest destruction, when it is spending taxpayers money to actually stop it,” the spokesperson said.

“There is currently no certification scheme operating anywhere that ensures that palm oil hasn’t come from cleared rainforests, and there is only a very small amount of sustainable palm oil available in the marketplace."

The EU Environment Commissioner, Stavros Dimas, announced yesterday that the EU would introduce a certification scheme for biofuels, and promised a clampdown on biodiesel from palm oil, which is leading to forest destruction in Indonesia.

Biofuel manufacturers and importers also currently receive tax rebates in Australia, and these rebates extend to those companies that import palm oil from cleared rainforests in countries such as Indonesia and PNG.

While biofuels have been touted as a way to reduce greenhouse emissions, a recent CSIRO report found that the use of palm oil from cleared rainforests actually increases emissions by between 50 and 136 times more than does normal diesel.

SOURCE: National farm machinery news, FarmOnline