Home breadcru News breadcru Association/Org breadcru Major switch from fossil fuels to renewable sources

Major switch from fossil fuels to renewable sources

26 Apr '06
3 min read

United Nations announces that, under the pressure from soaring oil prices and growing environmental constraints, momentum is gathering for a major international switch from fossil fuels to renewable bio-energy sources such as sugar cane or sunflower seeds, the United Nations Food and Agriculture Organization (FAO) said.

“The gradual move away from oil has begun. Over the next 15 to 20 years we may see bio-fuels providing a full 25 per cent of the world's energy needs,” Alexander Müller, the new Assistant Director-General for FAO' Sustainable Development Department, Alexander Müller, said at the agency's Rome headquarters.

FAO's interest in bio-energy stems from the positive impact which energy crops are expected to have on rural economies and the opportunity offered countries to diversify their energy sources.

“At the very least it could mean a new lease of life for commodities such as sugar whose international prices have plummeted,” FAO's Senior Energy Coordinator Gustavo Best noted.

Factors pushing for such a momentous change in the world energy market include environmental constraints such as increased global warming and the Kyoto Protocol's curbs on emissions of carbon dioxide and other greenhouse gasses as well as a growing perception by governments of the risks of dependence on oil.

“Oil at more than 70 dollars a barrel makes bio-energy potentially more competitive,” Mr. Müller said. “Also, in the last decade global environmental concerns and energy consumption patterns have built up pressure to introduce more renewable energy into national energy plans and to reduce reliance on fossil fuels.”

Get Free Weekly Market Insights Newsletter

Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!