Demands for crackdown on biofuels scam

[RedEarth]

The EU is being urged to take action to stop a biofuel trading scam that exploits US agricultural subsidies and undermines the fight against global warming.

Up to 10% of biofuel exports from the US to Europe are believed to be part of the rogue scheme reaping big profits for agricultural trading firms.

The "splash and dash" scam involves shipping biodiesel from Europe to the US where a dash of fuel is added, allowing traders to claim 11p a litre of US subsidy for the entire cargo. It is then shipped back and sold below domestic prices, undercutting Europe's biofuel industry.

The trade is not illegal, but flouts the spirit of producing green fuel by transporting it needlessly across the Atlantic at a time when campaigners are voicing concern about emissions from global shipping.

http://www.guardian.co.uk/environment/2008/apr/01/biofuels.energy


The Christian Science Monitor has more details:

Fast-rising worries over global warming have created a biofuel boondoggle.

Called "splash and dash," "touch and go," or an unfair trade practice, it features biofuels traders who exploit a US tax credit, European drivers who get cheaper diesel fuel, and American taxpayers, who are footing the bill.

It also illustrates a cautionary tale of how government incentives, no matter how well-intentioned, can sometimes be subverted into windfalls for the few.

"You have US taxpayers providing a very nice tax incentive, and they're not receiving any energy-security benefit or added fuel to the marketplace or benefits to US development in return," says Joe Jobe, chief executive officer of the National Biodiesel Board, which represents US biodiesel producers.

http://www.csmonitor.com/2007/0608/p02s01-usec.htm

[robinlynne]

1. big producer/importer exporter: Jeb Bush. Man who created the subsidies: GW Bush

need i say more?
This is why we're (the US) all over ethanol insted fo electric cars which is what we hsould be going for...