Analysis of the Effect of Biodiesel Energy Policy on Markets, Trade and Food Safety in the International Context for Sustainable Development

Abstract

According by national objectives in each country to achieve energy alternatives, the reduction of gases which cause the greenhouse effect and new strategies for rural development, the production of biodiesel have increased in the last few years and a higher number of countries are adopting new policies. Nevertheless, in the annual report entitled The State of Agriculture and Food Supply presented by the FAO (Food and Agricultural Organization) (FAO, 2008b), the increase of biofuel production is presented as worrisome since the massive use of biofuels would generate more pressure on the food supply and could bring negative social and environmental consequences. However, there is no clear consensus on the level of connection between food and biofuel since high prices can also offer potential long term opportunities for agriculture and rural development. The demand for raw materials to produce biofuels could constitute a structural variation in the tendency for prices of agricultural products to decrease, creating opportunities as well as risks. The perspectives of growth in bioenergy for developing countries as well as the demand from countries of the OECE (Organization for Economic Cooperation and Development) can bring new opportunities for commerce in biodiesel and the securing of raw materials. In this way, the applied policies seem to play an important role in sustainability for this type of bioenergy. This chapter analyzes the tendencies in the market, the impact on raw materials as well as the repercussions in the food supply and in the policies of the sector, within a context of sustainable development. The method used is an analytical approach by using data and statistics of international organizations to develop baseline scenarios and forecasts on the factors of sustainability, international policy and market and food security. The paper brings together the available knowledge and processes of the sustainability framework to support debate about the potential of biodiesel systems. Among the reflections, it is considered that the impact of biofuels depends upon the scale and type of system under consideration, and the policies,