The proposal also provides incentives for biofuels with no or low emissions from ILUC. The EC especially wants to encourage second- and third-generation biofuels that are produced from feedstock, such as algae, straw, and various types of waste. These don't create additional demands for land and will contribute proportionately more toward the target of 10 percent renewable energy in transport fuels.
One major study indicating problems with the environmental friendliness of biofuels was conducted recently by Empa, the Swiss Federal Institute of Technology's materials science and technology laboratory. It concluded that only a few are more sustainable than petroleum-based fuels.
In many cases, although agriculture-based feedstocks cause fewer greenhouse gas emissions, they lead to other problems, such as increasing soil acid or pollution from fertilizer. Although biofuels from ethanol tend to have a better ecobalance than oil-based fuels like palm or soybean oil, results in each case depend on manufacturing method and fuel technology.
The study points out that environment assessment methods have been refined and better developed during the same time period that second-generation biofuels have been created, along with more innovative production methods.
With that cumulative perspective, it shouldn't be a surprise that first-generation food crop-based biofuels aren't such a great idea, because they not only affect food and feed crops, but may also be harmful in other ways. Other plant-based biofuel feedstocks, such as algae, may prove to be a lot less impactful on the environment.