Venezuela Oil Discussions

MQT on 2007-05-23
Session date: 
May 23, 2007
Question By: 
Andrew Pelling
GLA Conservatives
Asked Of: 
The Mayor


Will you follow up your oil discussions with Venezuela's PDVSA with discussions with Brazilian and US governments to promote Brazilian and US style biofuel ethanol usage in London?


Answer for Venezuela Oil Discussions

Answer for Venezuela Oil Discussions

Answered By: 
The Mayor

We are continuing to investigate the potential benefits of biofules to achivening London's climate change targets. While some types of ethanol can reduce CO2 emissions considerably compared to petrol or diesel, these emission benefits vary greatly according to the crop type, production methods and transportation requirements. US bioethanol derived from corn. For example, typically has higher emissions than petrol. It is therefore extremely important to ensure that any decision to purchase ethanol is based on a thorough understanding of these issues and that an assessment of the emissions benefits has been undertaken first. There has been extensive media coverage recently about the impact that the increased demand for biofuels is having in South America and Asia in terms of deforestation and destruction of peat land. There are also growing concerns about the diversion of crops from food production to biofuel production, which is causing the price of grains to rise, thereby leading to food shortages. I discussed biofuels with President Lula of Brazil last year when I met him in London. We will continue to monitor development on biofuels before deciding whether or not to promote biofuels more strongly in London.