THE DEFINITIVE TRUCKING SITE

July 2008

UPDATE
 Biofuels

In his new book, A Cool Look at Global Warming, Nigel Lawson, former British chancellor of the exchequer, says the most likely next bubble to burst is a green bubble. His comments are based on the notion that the future of emissions trading has no future if the Kyoto agreement is not replaced with tougher measures after it expires in 2012. Lawson believes that economic challenges governments are now facing will result in a scaling back of subsidies for renewable energy sources. 

Based on the work undertaken by the Centre for Climate Research in the UK, Lawson says no global warming is currently taking place. Accordingly, the lull will last until 2015 when warming is expected to rise. Writing in Time magazine, Lawson points to the fact that internationally respected records confirm warming lasted only 25 years during the period 1875 to 1975. The 0.5C increase in temperature during the last quarter of those years produced the hysteria that triggered the frenzy among greedy entrepreneurs and investors. Lawson acknowledges there may well be green business opportunities but suggests that investors make sure they get out before the bubble bursts. 

The European Union (EU) is investigating allegations that US tax breaks are damaging the EU’s biodiesel industry. US incentives include tax breaks and cheap federal funding. The spat comes at a time when the EU is about to increase biofuel use by 10% for all transport modes by 2020. US exports to the EU increased from 7000 tons in 2005 to more than one million tons in 2007. US producers earn a $300 rebate on biodiesel that contains a drop of petroleum diesel. Sold as the well-known B99 blend, US exporters have a price advantage of between €120 and €180. US producers reject the claims saying the problem lies with poor business practices and high feedstock prices in the EU.