Date: Thu, 09 Sep 2004 15:37:17 -0500
From: Jim McNelly <jim@no.address>
List-Id: US Composting Council Compost Discussion List
* Use of Biomass for the Production of Energy and Materials - On
September 6, OECD issued a News Release, titled "Amid Volatile Oil Prices
OECD Report Calls for Policy Changes to Promote Biomass," which states in
part that " ... Plants and animal waste could become viable alternatives
to fossil fuels in providing energy and materials if governments changed
strategies ..." according to a new OECD report out today, which is the
proceeding of an OECD Workshop on Biomass and Agriculture, held June 10
through 13, 2003 in Vienna, Austria - The report is titled "Biomass and
agriculture: sustainability, markets and policies" - According to the
report " ... Instead of offering financial incentives or subsidies to
stimulate the use of such organic material, known as 'biomass,'
governments should encourage technical innovation as a way of narrowing
the price gap with oil and gas products. This would stimulate demand and
boost the supply of bioproducts. Indeed, the recent volatility in oil
prices has underlined the potential increased cost competitiveness of
energy and raw materials produced from biomass. The report considers that
financial incentives for bioproducts, currently used in many countries,
should be avoided as they distort markets and lead to a long term
dependency on subsidies. Agriculture as a whole is under pressure to
reduce overall support levels and establish carefully targeted policies
and market-based approaches. Similarly, the report argues against
subsidies favouring the use of fossil fuels. According to the report,
long-term strategies should be developed that recognise the potential of
local resources and encourage the establishment of bio-refineries to
recycle a range of farm by-products in addition to using grains, oilseeds
and sugar ..." - The complete text of the news release is posted at
<http://www.oecd.org/document/63/0,2340,en_2649_33791_33701567_1_1_1_1,00.html>http://www.oecd.org/document/63/0,2340,en_2649_33791_33701567_1_1_1_1,00.html
- The report is posted at
<http://webdomino1.oecd.org/comnet/agr/BiomassAg.nsf>http://webdomino1.oecd.org/comnet/agr/BiomassAg.nsf
- OECD is the Organisation for Economic Co-operation and Development, a
group of 30 member countries sharing a commitment to democratic
government and the market economy - Its work covers economic and social
issues from macroeconomics, to trade, education, development and science
and innovation - The OECD produces internationally agreed instruments,
decisions and recommendations to promote rules of the game in areas where
multilateral agreement is necessary for individual countries to make
progress in a globalised economy - Information about OECD is posted at
<http://www.oecd.org/about/0,2337,en_2649_201185_1_1_1_1_1,00.html>http://www.oecd.org/about/0,2337,en_2649_201185_1_1_1_1_1,00.html
http://www.oecd.org/document/63/0,2340,en_2649_33791_33701567_1_1_1_1,00.html
Amid Volatile Oil Prices OECD Report Calls for Policy Changes to Promote
Biomass
06/09/2004 - Plants and animal waste could become viable alternatives to
fossil fuels in providing energy and materials if governments changed
strategies, according to a new OECD report out today.
Instead of offering financial incentives or subsidies to stimulate the
use of such organic material, known as "biomass", governments should
encourage technical innovation as a way of narrowing the price gap with
oil and gas products. This would stimulate demand and boost the supply of
bioproducts. Indeed, the recent volatility in oil prices has underlined
the potential increased cost competitiveness of energy and raw materials
produced from biomass.
The report considers that financial incentives for bioproducts, currently
used in many countries, should be avoided as they distort markets and
lead to a long term dependency on subsidies. Agriculture as a whole is
under pressure to reduce overall support levels and establish carefully
targeted policies and market-based approaches. Similarly, the report
argues against subsidies favouring the use of fossil fuels.
According to the report, long-term strategies should be developed that
recognise the potential of local resources and encourage the
establishment of bio-refineries to recycle a range of farm by-products in
addition to using grains, oilseeds and sugar. Such complexes would be
capable of producing both energy and materials derived not only from
annual crops but also grass, short rotation trees, cereal straws and
other by-products.
The report, Biomass and agriculture: sustainability, markets and
policies, comprising a series of papers presented by international
experts, argues that a significant shift could take place this century
from a fossil fuel to a biomass-based economy. To aid this process it
suggests creating carbon markets which would provide credits to biomass
producers for displacing fossil fuels.
The report also reveals that:
The prices of some niche market bioproducts such as plastics derived from
arable crops are already competitive with certain petroleum-based
plastics. The car industry, for example, is making increasing use of
bioplastics.
Around 7% of heat generation and 1% of total electricity in OECD
countries is provided by agricultural bioenergy. In developing countries
an estimated 25% of total energy demand is met by biomass, principally in
the form of firewood and animal dung.
Because bioethanol, produced from sugar and grains, can be used in
existing engines with little modification, it is easier to exploit than
other alternative transportation fuels such as hydrogen.
The report calls for international standards and codes of practice to be
established for biomass products to ensure that greenhouse gas emissions
are reduced and environmental benefits are maximised. A better assessment
of costs and benefits taking into account economic, environmental and
social aspects is therefore needed. It adds that clear lines of
communication should be established between the suppliers, processors and
potential users. Also, public education campaigns about the biomass
sector should be developed.
Journalists may obtain a copy of the report from the OECD's Media
Relations Division (tel: + 33 1 45 24 97 00). For further information see
the OECD website at www.oecd.org/agr/env, or contact Kevin Parris, OECD's
Food, Agriculture and Fisheries Directorate (tel: +33 1 45 24 95 68).
END
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