Wednesday, May 7, 2008

Germany says biofuels aren't to blame for food prices

As the debate about biofuels rages on, German ministers are sticking to their guns when it comes to renewable energy targets. Despite pressure from the UN to cut back on crop fuels, Germany's environmental minister Sigmar Gabriel says that Germany should go ahead with its plans to use 10% biofuels by 2020.

According to Gabriel, the spike in food prices is coming from a variety of sources like poor harvests, increased global demand, and huge growth in commodities investment. The real culprit in the global food crunch isn't the growing market for biofuels, he says. Instead, it's speculators that have driven commodity prices to astronomical levels, breaking down the normal relationship between supply and demand. Of course, the same can be said about the price of oil.
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