Biofuel - is it fuel vs food?

Tena koe Mr Speaker, tena tatou katoa.



In simple economic terms, this Bill is a demonstration of the principle on Energy Returned on Energy Invested.



The Bill amends the Energy (Fuels, Levies and References) Act 1989 in order to implement the biofuels sales obligation policy. In doing so, it puts into being the equation that energy is required to make energy.



The bio-fuels sales obligation policy will require suppliers of petrol and diesel in New Zealand to also supply a proportion of biofuels, up to a level of 3.4% by 2012.



Basically, for every petrol supply provided, there will be a certain percentage of bio-fuel included.



The amendment to Custom and Excise Act 1996 ensures that bio-fuel and blends will be free of excise or excise-equivalent duty.



In terms of the 3.4% by 2012 this is certainly not fast enough from the Maori Party’s point of view.



The Maori Party supports the use of alternatives to oil-based fuels to address both the immediate crisis of peak oil and the longer-term crisis of climate change; but we must do more, because progress is far too slow.



Bio-fuel, the liquid fuel produced from biological fuel sources like vegetable oils or animal fats, can act as either a substitute for, or an additive to, petrol and diesel.



The most commonly used bio-fuels are bio-diesel and bio-ethanol. Biofuels are a renewable energy source, it is non-toxic in the event of spills, and reduces carbon emissions.



And of course that all leads to the emissions cycle proceeding rapidly through the atmosphere, resulting in less adverse effects on the climate.



One would think, therefore that there should be a great deal of optimism related to this Bill.



The soaring oil prices have made bio-fuels economically viable. Energy demand is predicted to keep soaring, the future for oil supplies is constrained, and to top it off, bio-fuels are resoundingly eco friendly or so we are told.



So what does it all mean? Will the humble tortilla chip become the next black gold?



Will Kellogg’s cornflakes become the new luxury breakfast item?



For one of the challenges of biofuels is that the energy produced is always less than the energy that created it.



The energy utilised in the manufacturing process is lost in the fertilising of the land used to grow the biomass; the irrigation; maintenance and harvesting of the biomass (all usually done with oil-dependent heavy machinery), the transportation of the biomass and the biomass to bio-fuel conversion.



What all this means is that there are difficult choices and decisions around about how we can rationalise the viability of the whole process, especially in a future that will be energy scarce.



The Maori Party has advocated for a Genuine Progress Index, GPI, as providing a measure of comprehensive, sustainable, and inclusive advancement. We believe that a more comprehensive indicator of progress towards sustainable development would be useful to this debate.



When measured by the GPI Index we find there is a deficit and the production of the biomass over all ends up as being uneconomic. And so how sensible is that?



A particularly useful contribution to this debate has come from Cuba – and its revolutionary leader, Fidel Castro. At the end of March this year, Mr Castro warned American President, George Bush, and I quote,



“against the sinister idea of converting food into fuel”.



Mr Castro’s concern was that the States’ use of corn to make ethanol biofuel to reduce the country’s dependence on foreign oil, has already driven up the price of corn.



And when corn goes up, since corn is used as animal feed, the price of meat goes up.



And given that more land is used to grow corn, rather than other food crops, their prices also rise.



In other words the poor people of the world go hungry, while America’s greedy guzzling Chryslers are well-fed on biofuel.



The key issue for us, therefore, is that the materials used to produce biofuels must be sustainable and do not have adverse consequences for any other consumer.



We would be extremely concerned if actions taken to reduce energy consumption and conserve energy on one hand, on the other lead to food shortages and increased food prices.



In New Zealand, it appears the single biggest source of bio-diesel would be tallow, an animal fat that is a by-product of meat processing. Likewise, bioethanol in New Zealand is made as a by-product of the dairy industry.



The worst case scenario, however, would be that in increasing the value of biofuels this may incentivise farmers to grow biofuels and not food.



It is in light of such concerns that the International Food Policy Research institute, has issued a warning that in order to make strong environmental and economic contributions, AND to look after the interests and well-being of the poor, we need to take a pre-cautionary approach.



Such caution is of particular relevance as we approach on October 17, International Day for the Eradication of Poverty.



The theme for this year’s International Day for the Eradication of Poverty -- “Working together out of poverty” promotes the concept of a global anti-poverty alliance.



The Maori Party believes that any further consideration of biofuels, must take into active consideration, the impact of biofuel production on the lives of poor people as both energy producers and consumers.



The regulations in this bill go some way towards giving us confidence in this regard.



For a regulation is included that provides for an Order in Council to specify, in the future, that biofuels having certain characteristics may or may not qualify as bio-fuels.



We would hope that this will mean, that the Bio-diesel we use as a substitute for ordinary diesel; or the bio-ethanol we use as a substitute for ordinary petrol will meet specified environmental or sustainability standards.



We want to make absolutely sure that the green alternative we take on to power our cars, buses and trains, doesn’t create famines, trash rainforests, bump up food prices, and create a market opportunity for the corporate world to exploit.



We want to avoid a fuel versus food trade off as well as developing an efficient and sustainable bio-fuels industry.



Mr Speaker, the Maori Party is acutely aware that the transport sector is responsible for 45% of our greenhouse gas emissions. We appreciate too, that as bio-fuels are produced from biological material, they are to varying degrees ‘carbon neutral’.



Finally, I want to return to Cuba for inspiration in how we survive peak oil, and create alternatives for vehicles and generators, through the consistent regulation of modern fuels used in engines, including bio-fuels and blends.



Beres from Cuba Solar, a renewable energy organization, in talking about the challenge facing humanity concluded, and I quote:



“There is climate change, the price of oil, the crisis of energy…….what we must know is that the world is changing and we must change the way that we see the world”.



This is indeed a challenge – that we find new ways to reduce energy consumption, new ways to conserve energy, new ways to address the longer time crisis of climate change, and new ways to eradicate poverty and take collective responsibility for the well-being of future generations.



The Maori Party will support this Bill, in order to open the doors and allow the debate to take place, for the new ways to be given life.