Biodiesel development: current status, potential impacts and perspectives

The global development of biofuel has been accelerating in the last few years. However, with the expansion of first generation biofuel (grain based), its impacts on food price, food security and environment start to loom, and have drawed many debates. This paper reviewed the current development of biodiesel, targets, and incentive policies in major biodiesel production countries. Based on the current feedstock demand and processing technologies of biodiesel, the paper analyzed its potential impacts on the prices of agricultural products and environment. The results indicate that the expansion of biodiesel production at a global level will still continue in the foreseeable future, and this will bring mounting pressure on the prices of agricultural products, especially on the prices of oil crops. The development of biodiesel will also have substantial impacts on environment and greenhouse gas emission, but the magnitude of its impacts will highly depend on production mode and the land use changes due to biodiesel development. To reduce the potential negative impacts of biodiesel development, China should focus on forest based biodiesel, particularly the Jatropha-seed based biodiesel, and formulate regulatory and incentive polices to promote the sustainable development of biodiesel industry in China.