Europe and South America
Until recently, Europe's small market in biofuels was dominated by home-grown rapeseed (canola) oil. But surging demand from the food market has raised the price of rapeseed oil too. This has led fuel manufacturers to opt for palm and soya oil instead. Palm oil prices jumped 10 per cent in September alone, and are predicted to rise 20 per cent next year, while global demand for biofuels is now rising at 25 per cent a year.
But world energy resources are adequate to meet this sustained growth trend because global oil reserves today exceed the cumulative projected production to 2030, IEA said. This optimistic outlook, however, is based on a reference scenario that IEA describes as "unsustainable."
Under that reference scenario, primary world energy demand increases by an average rate of 1.6%/year, with fossil fuels accounting for 83% of the projected increase. By 2030, the world consumes 16.3 billion tonnes of oil equivalent (toe)/year5.5 billion toe more than it does todaywith more than two thirds of energy use coming from developing countries.