The Twin Challenge for the EU: Economic Growth or the Environment

Mr. Benedetto Della Vedova , a member of the Italian Chamber of Deputies and former member of the European Parliament wrote an opinion piece that appeared in the Wall Street Journal discussing the challenge the European Union must make in producing bio-fuel energy.

He states that currently the European Union has increased pressure to produce green, reusable energy, including biofuels. But fears of competition from the U.S. and Asia has pushed Brussels to pass a restriction on importing biofuels from abroad. Mr. Della Vedova believes the EU is masking protectionism with environmentism as a way to push the other competitors out. Many efforts have been made to say that Asia’s biofuel is bad for the environment and America is ‘dumping’ in Europe, but none of these claims hold up.

And it’s not that Europe’s biofuel producers are struggling. They enjoy a strong competitive position in their home market. EU biodiesel production accounts for 78% of the biofuels consumed in the EU, according to the European Biodiesel Board. Europe is also a major player on the global stage, responsible for 65% of the world’s biodiesel production. At a time, though, when European producers are under pressure from the economic downturn, it is understandable they would look to Brussels for help.

Let’s hope far-sighted policymakers will resist the siren call of protectionism and defend free-trade in biofuels and other goods. Protectionism in the 1930s turned a bad situation into a disaster. Let’s not repeat that mistake.

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