Financial Times FT.com

OECD warns against biofuels subsidies

By Andrew Bounds in Brussels

Published: September 10 2007 22:28 | Last updated: September 10 2007 22:28

Governments need to scrap subsidies for biofuels, as the current rush to support alternative energy sources will lead to surging food prices and the potential destruction of natural habitats, the Organisation for Economic Co-operation and Development will warn on Tuesday.

The OECD will say in a report to be discussed by ministers on Tuesday that politicians are rigging the market in favour of an untried technology that will have only limited impact on climate change.