Biofuels and indirect land use change. The case for mitigation.
A diverse consortium of industrial companies and NGOs formed by PANGEA, ePURE, IUCN, Neste Oil, , Riverstone Holdings LLC and Shell commissioned Ernst & Young to produce a report on Indirect Land Use Change (ILUC).
The consortium was brought together through the shared belief that a proactive, constructive policy response is needed to address EU concerns about ILUC associated with biofuels production. The report shows that risks associated with indirect land use change can be reduced by the introduction of incentives that encourage existing and additional sustainability practices in biofuels production, as well as other sectors that use agricultural commodities.
The policy option proposed by the consortium differs from the four ILUC mitigation measures currently under consideration by the European Commission in that it provides opportunities to combine incentives with the more punitive approaches.
ILUC mitigation practices identified by Ernst & Young include:
- the development of advanced generation biofuels,
- improvements of crop yields on existing agricultural land,
- the use of co-products for animal feed purposes, and
- crop production on abandoned lands.
“Investment in agriculture is key to creating lasting economic, social and environmental development in sub-Saharan Africa. Sustainable biofuels can increase farmer incomes, create jobs, increase access to energy for communities, decrease dependency on foreign petroleum imports, and combat climate change. Mitigating ILUC is a practical and sound way to drive real change on the ground and ensure that biofuels sustainably offer real benefits to developing countries.” - Meghan Sapp, Secretary General, PANGEA
Click here to read the full report
Click here for the European Commission’s DG Energy page on ILUC.

