Carbon taxes will benefit biofuel production

Global economic thought dictates that 'if you can't beat them, try harder'. Which is why economies around the world are investing more in biofuels to beat the EU governments' newly announced carbon tax on airlines.

Chinese airline operators have complained that the new tax will cost them an extra 122 million dollars (£79 million) per year, and as a consequence, they are looking to greener solutions to levy the tax on flights that depart or land in the region.

China's Five-Year Plan (2011-2015) aims to raise its share of non-fossil fuel energy to 11.4 percent of total energy use, reducing the reliance on Kerosene.

The Australian government has its own carbon tax that is being directly pumped back into research and development of biofuels, namely algae production. The $23-a-ton (£16-a-ton) carbon tax should make around $23 billion (£16 billion) available for new developments in the region, to accompany several algae farms currently being harvested. Qantas, Virgin Air, and airplane manufacturer Boeing, are all paying particular attention to the Australian bioenergy initiatives.

Posted by Jospeh Hutton