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This report, published by the Food and Agriculture Organization, outlines the current state of the biofuels debate and examines the policies being implemented to support biofuels and those needed to address issues affecting the environment, food security and the poor.

The report begins with a technical overview of the types of biofuels available and then focuses on the economic and policy drivers of liquid biofuels and the short- and long-term prospects of biofuel markets. The environmental impacts of biofuels, together with the impacts on poverty and food security are examined and the policy challenges discussed, including proposals for a better policy framework.

The report suggests that rapid increases in demand for biofuel feedstocks pose an immediate threat to the food security of the urban and rural poor. But it also implies that in the long term, more demand for agricultural commodities may present opportunities for agricultural and rural development. The impact of biofuels on greenhouse gas emissions is found to vary according to location and agricultural practices, and the authors call for more harmonised approaches to assessing the impact of biofuel production on climate change.

This brief, based on an ESMAP report published in 2005, provides a roadmap for developing countries considering large-scale biofuels production.

It proposes sugarcane ethanol as the most commercially viable option, and draws on Brazil's experience to show what has made their industry successful, as well as listing eight conditions that foster success in ethanol production. These include adequately educating farmers, establishing good roads and developing a communication infrastructure.

Although almost 100 countries have started to grow sugarcane, none have yet matched Brazil's success. This brief outlines steps for a global evolution of biofuels production, and suggests ways in which governments can help.

This report, assessing bioenergy production in G8+5 countries, highlights challenges for the developing industry.

Trade barriers still impede bioenergy development, particularly in smaller developing countries. And although not all biofuels are environmentally friendly, there is no international sustainability assurance system for bioenergy — though this is being addressed.

All of the +5 countries except Russia have set a transport biofuel target, and are reviewing blending targets. Almost all countries cite energy security and climate change as the most important factors for developing biofuels. Technical standards are becoming increasingly uniform, which will promote quality assurance and trade.

Energy demands are rising, and most of this demand will come from outside the OECD by 2015.

This report outlines how developing country farmers can exploit biofuels' potential, including producing ethanol from crop residues and growing energy crops on land unsuitable for producing food.

It analyses bioenergy's effects on global food sources, showing how incomes, and thus food security, could improve.

Developing an industry that benefits poor, small-scale farmers is a challenge. The authors highlight the need for management and regulation at all levels, from local communities to policymakers, as well as ensuring technologies are transferred.

Biofuels offer an attractive solution to escalating oil prices and concern over how fossil fuels affect global climate. They also provide new prospects for rural communities.

But their full implications, for developing countries and the environment, remain unclear. Balancing economic efficiency and environmental sustainability is not easy, and many key questions remain unanswered.

This essay addresses some of these questions, investigating the pros and cons of biofuels for the developing world. It examines economic and social factors, and the role of science and technology in biofuels production. It explores experiences from Brazil and other developing nations, as well as trade-offs between producing biofuels and food.