Ruth Kelly told the Commons that Britain needed to press ahead with biofuels because the technology could still prove beneficial. But she said the government would slow down their introduction.

She said: “I believe it is right to adopt a more cautious approach until the evidence is clearer about the wider environmental and social effects of biofuels. We also need to allow time for more sustainable biofuel technologies to emerge.”

This move follows the publication of a government-commissioned report by Professor Ed Gallagher, the head of the government’s Renewable Fuels Agency, which recommends ministers “amend not abandon” biofuel policies. However, for the Conservatives, shadow transport secretary Theresa Villiers said a “mere slowdown” of the targets would not address problems and said policy had to change “right now”.

The report calls for biofuels to be introduced more slowly than planned until controls are in place to prevent higher food prices and land being switched from forests or agriculture. It predicts that current policies could see grain prices in the EU rise by 15%, sugar by 7% and oil seed by 50%. The review estimates that an extra 10.7 million people in India could find themselves in poverty, while countries such as Kenya, Malawi and Bangladesh could see hundreds of thousands affected.

The report said that without stringent checks, current targets for biofuel production could cause a global rise in greenhouse gas emissions and an increase in poverty in the poorest countries by 2020.

Ms Kelly’s statement comes as the European Parliament is about to vote on whether to scrap the EU’s target of sourcing 10% of transport fuel from biofuels by 2020. World Bank president Robert Zoellick has also called for reform in rich countries, urging them to grow more food instead.

Via BBC and The Guardian

Well we’ve outlined the main Climate related points of the Budget for you below:

• On the back of record oil prices, the planned 2p per litre increase in fuel duty has been postponed until October. However, for environmental reasons, duty on fuel will rise by 0.5p in real terms by 2010.
• Road pricing could fight congestion, so new funding committed to its development.
• From 2009 there will be new bands of road tax for the most polluting vehicles. From 2010, lowest emission cars will pay no tax in first year.
• Target to reduce carbon emissions by 60% may be extended to 80% by 2050.
• Legislation to come into force in 2009 to impose a charge on single-use carrier bags if progress is not made on a voluntary basis.
• £26 million next year to help homes cut their carbon footprint and energy consumption.
• New non-domestic buildings zero carbon by 2019.
• First carbon budget pledged alongside next year’s Budget.

So all-in-all I don’t see that as too bad for the Climate.  Obviously there’s always more that could be done but it’s good to see that things are moving in the right direction!

The one really exciting point of this for me is next year’s “Carbon Budget”.  I’ll try and find out some more about what exactly this will consist of but it sounds as though it could mean big things for this Country’s commitment to the Environment and the fight against Climate Change.

In a costly concession, he is expected to announce that a 2p rise in fuel duties will be delayed by six months to avoid angering motorists, who are bearing the cost of rising oil prices.

But is this being done for the right reasons or are the Government just trying to grab more of our money?!  I’m all for taxing car users more, but let’s hope the Government will put the extra revenue to a good cause!