Gerry Brownlee

Minister of Energy and Resources Gerry Brownlee has welcomed the Parliamentary Commissioner for the Environment's report Some biofuels are better than others: thinking strategically about biofuels, which was tabled in Parliament today.

"The report takes a fresh look at the potential role of biofuels in New Zealand, and the government will be considering its recommendations carefully," Mr Brownlee said.

The report identified that not all biofuels are good, highlighting that some biofuels can cause severe environmental and social damage.

However, the commissioner has also noted that New Zealand's current biofuel production is considered sustainable.

"I particularly welcome the Parliamentary Commissioner's comment that it makes no environmental sense for New Zealand to import 'bad' biofuels. That is why the government repealed the Biofuel Sales Obligation, implemented by the previous Labour-led government, and replaced it with a grants scheme for biodiesel," Mr Brownlee said.

Other recommendations in the report are that the Sustainable Biofuel Bill (a Member's Bill in the name of Jeanette Fitzsimons, currently at select committee), does not proceed, and that the Biodiesel Grants Scheme should be modified so that biodiesels other than fatty acid methyl esters qualify for support.

The Parliamentary Commissioner welcomed the government's recent extension of the Biodiesel Grants Scheme so that biodiesels can be sold in any blend up to B100.

"I have directed officials from the Ministry of Economic Development to conduct a review of wider government support for biofuels later this year with the aim of providing clarity to the industry of policies from 2012 onwards.

"Many of the issues raised in the report will be considered as part of this review," Mr Brownlee said.