Biofuels and poverty reduction: Is there a way through the maize?

Some fairly lofty claims have been made about the role of biofuels in development and poverty reduction. There are arguments that energy crops provide a solution to the twin problems of poverty reduction and climate change, by providing fuels with low greenhouse gas emissions whilst enabling rural job creation and food security, reducing oil imports and improving domestic and regional energy production capacity. But elsewhere there is scepticism, with concerns that biofuels will be a ‘pandora’s box’ of environmental, social and economic issues. The net energy balances for many biofuels are unclear and linkages to poverty reduction, for example through agricultural growth, have been questioned.

At this ODI event, Rachel Slater and Joy Clancy examined current evidence for linkages between biofuels and poverty reduction. They explored the two main areas where links have been made:

• Biofuels, agriculture and poverty reduction. What do we know about the economic, growth and poverty impacts of biofuels in developing countries? What are the likely implications of increased biofuels production on competition for land, food prices and food aid flows?
• Biofuels, energy and poverty reduction. What role might biofuels play in helping secure energy access for the poor? How might increased biofuels production affect developing countries’ energy sectors, and how can benefits be ensured?