Biofuel analysis 'causes industry division'

Biofuel analysis conducted by the European Commission has caused a split across the industry - and cast doubts over its future.

Investigating indirect land use change (ILUC), the European Commission declared that this process could offset the beneficial environmental effects of biofuels.

ILUC is the principle that land needs to be cleared in order to produce biofuels, without reducing the amount of terrain dedicated to growing crops.

This means that more space needs to be created, which could come from clearing areas in forests. Burning such areas would negate the benefits of biofuels, some figures claim.

However, there are companies that disagree with these findings.

"Such a factor would render the European biofuel industry no longer viable. ILUC is far too complex an issue for any quick policy fix", the European Renewable Ethanol Association and the European farmers' body Copa-Cogeca told Reuters Africa.

Indeed, these organisations claim that restrictions on ILUC could harm the industry as a whole.

Last month, a study on bioethics by Nuffield University declared that the current production of biofuels is "unethical" - and urged that policies in the UK and Europe need to be improved.