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September 14, 2007 | Jim Lane | Comments 0

EU confirms 10% biofuel target despite OECD media flap

The European Commission confirmed their commitment to a biofuel policy despite rumblings about a discussion paper leaked from the OECD Round Table on Sustainable Development that was erroneously identified as an official OECD report and caused a media flap this week. The EU has set a 10% minimum biofuels target for 2020, although the Community is committed to maximizing sustainable development of biofuels.

Questions have been raised by Brazil at the WTO about the relationship of energy incentives and agricultural subsidies wioth respect to US trade policy. Europe’s enormous agricultural subsidy budget (over half of EU spending) may come under increasing focus as Europe shifts agricultural focus from food production to fuel production.

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