Outlook for Biofuels

Biofuels for transport can contribute to making energy more secure by diversifying supply sources in an environmentally friendly way. A special chapter in WEO 2006 assesses the current status of biofuels production and technology, prospects to 2030 and the main drivers and uncertainties. It includes detailed projections of biodiesel and bioethanol supply to 2030 for the main producing regions for the Reference Scenario, in which no new policies are assumed, and an Alternative Policy Scenario, which takes into account policies currently under consideration. The implications for land needs and required subsidies to bridge the gap between production costs and market prices are analysed based on projected costs and technological developments.