New Report Reveals Biofuels’ Contribution to Global Economy
The global biofuel industry has grown significantly in recent years and has contributed to the individual economies of producing countries and to the global economy as a whole. This has been estimated by a new researchcompleted by CardnoEntrix on behalf of the Global Renewable Fuels Alliance (GRFA).
According to the report entitled “Contribution of Biofuels to the Global Economy”, in 2010 the biofuel industry contributed $277.3 billion to the global economy. The researchhas beenconducted by
CardnoEntrix, a global economic research company, which estimated that the economic footprint of the world’s biofuel industry is continuing to grow rapidly. The researchers projected thatby 2020 the biofuel industry will produce more than 51 billion gallons (196 billion litres) and support over 2.2 million jobs in all sectors of the global economy.
“This report demonstrates that our industry has come a long way in the past decade and the future prospects for growth remain extremely positive,” said Bliss Baker, spokesperson for the GRFA. The report published last week reveals that in 2010 the biofuel industry increased global GDP by 0.4 per cent and supported 1.4 million jobs in all sectors.Specifically, theglobal ethanol productiondoubled in the period 2005-2010 and increased three-fold in the last decade. What is more,the ethanol produced globally is expected to increase by 66.2 percent from 2000 to 2020, the report said.
!m(/uploads/story/85/thumbs/pic1_inline.png)And as the global biofuel industry grows, an increasing number of countries will startbiofuel production. Today’s top players in the ethanol industry are the United States, Brazil and the European Union, which produce 87 per cent of the ethanol produced globally. In these countries growth in the biofuel industry has been stimulated by national policies in the form of mandates and renewable energy goals as well as high crude oil and refined petroleum prices. Looking at the EU, the biofuel production is being stimulated by the EU Renewable Energy Directive, which requires renewable energy sources to make up 10 percent of transport fuels by 2020. The well-developed biofuel sector in EU creates jobs and investment opportunities but it also eases Europe’s reliance on imports of expensive foreign oil and reduces its oil bill, an important factor that the report also highlights.
According to the research,an increasing number of countries seek to reduce dependence on volatile world oil and petroleum prices, expand sources of alternative energy, create new revenue for farmers and stimulate agricultural production. This being so is the reason the three leaders in the biofuel industry will continue to be top producers but will not be able to satisfy global demand alone. The GRFA’s forecast is that developing countries in Asia and Africa will be the ones with most significant future growth in biofuel production. For those countries biofuels will supply rapidly growing domestic markets and provide an important base for expanding export earnings needed to fuel economic growth.“A growing biofuels industry in developing nations who import the bulk of their energy needs will bring wealth, jobs and prosperity while reducing their reliance on crude oil,” said Mr. Baker.
The new GRFA researchhas been conducted with the purpose to examine global production trends in ethanol and biodiesel, estimate the global economic footprint of the biofuel industry, and identify new and emerging production markets. In the context of this objective, Mr. Baker concluded:“This latest report clearly shows that the biofuels industry is having a tremendous impact on the global economy.”
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