Elmar Baumann of the Association of the German Biofuel Industry warns in Euractiv that the EU’s RED II policy change is designed to fail. The assumption is that investors will pour €9 billion into advanced biofuel research, but there are several reasons why this will not occur. Spade a Spade Multilateral institutions typically tip their hat to the domestic politics that cause a policy bias toward small farms. However, a study by the Inter-American Development Bank regarding the causes of limited economic growth in the Caribbean and Latin America faults this bias toward small firms in the regions. It notes that higher taxes and stiffer labor regulations are often applied to larger firms, resulting in an effective subsidy for small entities...

TAGS – Biofuels, Energy