Biofuel Output to Skyrocket Amid Energy Crisis

The global output of biofuels is expected to surge nearly 70% by 2030, according to a study published by Chatham House and the Forest Stewardship Council. This rapid growth is largely attributed to the energy crisis triggered by the Iran war.

As major producing countries increase their blending mandates in response to rising fossil fuel prices, biofuel demand is expected to skyrocket. Fossil fuel prices have risen nearly 40% since the outbreak of the conflict, while sugar and corn prices have gained about 20%.

The study warns that this surge in demand may worsen food inflation and deforestation risks. The authors estimate that if all proposed mandates are fully implemented, land needed to produce biofuel feedstocks could more than double by 2030 compared with 2023 levels.