Press release 31 May 2007
Ministry for Foreign Affairs

Creating a world market for biofuels

Minister for Foreign Trade Sten Tolgfors is visiting Indonesia and Malaysia, both large potential biofuel producers, for talks on future production conditions.

Sweden is taking coherent action in international contexts to promote measures to combat global warming. At the recent OECD ministerial meeting in Paris, Sweden gained approval for an initiative for an intensive study on biofuels and the workings of the multilateral trade system.

"International trade must be used to combat global warming. This necessitates the creation of a functioning world market for biofuels. Tariffs must be removed, more producer countries need to be added, environmental requirements in the production of biofuels must be met and standards harmonised. These measures would be good for the environment and would open up new markets for
developing countries," says Mr Tolgfors.

"In my discussions in Indonesia and Malaysia, I have discussed future biofuel production and how the potential of new producer countries can be encouraged. It is unreasonable to impose high tariffs on renewable fuels such as ethanol and not on fuels that cause climate change," says Sten Tolgfors.

"It is important to take the environment into account even when biofuels are produced. Otherwise, there is a risk of a backlash in that consumer interest for green cars and renewable energy will decline. Account must also be taken of ethical issues in several countries, such as the impact on food prices of greater biofuel production," says Mr Tolgfors.

On Thursday the Minister for Foreign Trade spoke about regional trade agreements and globalisation at a lunch seminar at the Bankers' Club. After that he met Malaysia's Deputy Trade Minister.

On Friday he will meet the Secretary-General of the "Roundtable on sustainable palm oil".