Press Release: Amid volatile oil prices OECD report calls for policy changes to promote biomass

Plants and animal waste could become viable alternatives to fossil fuels in providing energy and materials if governments changed strategies, according to a new OECD report 'Biomass and agriculture: sustainability, markets and policies', published in September 2004. Instead of offering financial incentives or subsidies to stimulate the use of such organic material, known as “biomass”, governments should encourage technical innovation as a way of narrowing the price gap with oil and gas products. This would stimulate demand and boost the supply of bioproducts. Indeed, the recent volatility in oil prices has underlined the potential increased cost competitiveness of energy and raw materials produced from biomass.

OECD: Trade and Agriculture Directorate http://www.oecd.org/department/0,3355,en_2649_33727_1_1_1_1_1,00.html

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