The report “Contribution of Biofuels to the Global Economy”, published by the Global Renewable Fuels Alliance, reveals that in 2010 the global biofuels industry contributed 213 billion euro(1) to the global economy, increased global GDP by 0.4% and supported 1.4 million jobs in all sectors.
“This report shows that the biofuels industry is contributing substantially to the global public good. As global biofuels production increases, the economic benefits of biofuels are being further maximised”, said Mr. Rob Vierhout, Secretary-General of ePURE.
The report highlights that ethanol production sustained nearly 70,000 jobs in Europe in 2010, and this could rise to about 190,000 jobs in 2020. Currently in 2012, with more ethanol production plants having been constructed in Europe during the past 2 years, the sector supports 100,000 direct and indirect jobs(2), mainly in the agricultural sector.
Highly skilled jobs have also been created in the fields of scientific research, sustainability certification, technology development and engineering, consultancy, as well as throughout the whole value chain of renewable ethanol production. However, taking into account the economic potential of next-generation renewable ethanol, up to one million jobs could actually be created in Europe by 2020 in all sectors.(3)
An EU research project on the impact of renewable energy policy on economic growth and employment in the European Union also revealed that the liquid biofuels industry - together with wind and solar technologies - is the most promising renewable technology that will contribute to additional employment in Europe.(4) The job creation and investment, which has been stimulated by an ever-growing European biofuels industry, is forecast to lead to an increase in the EU GDP of at least 0.17% (about €25 billion) by 2020.(5)
“Thousands of high-skilled green job are helping put Europe on the road to economic recovery after this financial crisis. European biofuels are also stimulating investment by keeping money inside of Europe”, said Mr Vierhout.
The increased consumption of EU-produced ethanol creates jobs and investment in Europe but it also eases Europe’s reliance on imports of expensive foreign oil and reduces Europe’s oil bill, an important factor that the report also highlights. The EU spent a massive 315 billion euro alone in 2011 to import foreign oil, an expense that is almost the size of the entire debt of Greece. The report highlights that without biofuels the EU’s oil account deficit would have been 6.3% higher. Decreasing this oil bill is good for the EU economy, keeping more money inside the EU and reducing the EU’s overall trade deficit of 115 billion euro.(6)
Notes:
(1) European Central Bank exchange rate of 1 Euro = 1.3132 USD.
(2) Based upon ePURE estimates.
(3) Bloomberg New Energy Finance (2010), Next-generation ethanol and biochemicals: what's in it for Europe?
(4) EmployRES - The impact of renewable energy policy on economic growth and employment in the European Union, final report, page 133 and 140.
(5) European Commission SEC(2006)1719, p.27.
(6) European Commissioner Connie Hedegaard speaking to the European Parliament on 12 March 2012.
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