Following closely on Climategate and the collapse of the carbon credit exchange... Saint Al is now sheepishly climbing down outta the ethanol tree...
Former U.S. vice-president Al Gore said support for corn-based ethanol in the United States was "not a good policy", weeks before tax credits are up for renewal.Thing is, it isn't just financially and ecologically unsound... it's actually driving up the cost of food.
U.S. blending tax breaks for ethanol make it profitable for refiners to use the fuel even when it is more expensive than gasoline.
The U.S. ethanol industry will consume about 41 percent of the U.S. corn crop this year, or 15 percent of the global corn crop, according to Goldman Sachs analysts.
"The size, the percentage of corn particularly, which is now being (used for) first generation ethanol definitely has an impact on food prices.
"The competition with food prices is real."