New South Wales to abandon biofuel mandates
It seems like everyone is beginning to abandon any biofuel mandate that could potentially lead to increases in food prices. Australia’s New South Wales joining in the trend by not implementing a mandate that would increase biofuel requirements to 10% by 2010.
NSW Premier Nathan Rees has ditched his predecessor’s commitment to introduce mandated levels of biodiesel in motor vehicles and boost ethanol levels from 2 per cent to 10 per cent.
In a setback for the biofuels industry, Mr Rees signalled yesterday that Morris Iemma’s mandate plans would not be implemented — putting himself at odds with Lands Minister Tony Kelly, who had insisted the Government backed the biofuels policy.
The about-face in NSW comes amid mounting evidence that biofuel mandates have contributed to growing world food shortages and rising prices.