An increasing number of countries have been supporting the extensive production and use of biofuels hoping to reduce greenhouse gas emissions, ensure energy security and help the rural poor. While the validity of such policy goals is largely shared, many critics doubt that biofuels are the solution and rather question the environmental, social and overall developmental impacts of biofuel expansion and related government support to the sector.
This paper examines the role of each of the above three policy goals in driving the biofuel industry and analyses the developmental impact of biofuels especially on weak economies. It also critically addresses some recent developments and measures taken to ensure the social and environmental sustainability of biofuels.