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Developing a Global Biodiesel Industry Term Paper

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Updated: May 28th, 2018


As far as energy is concerned, many researchers and innovations of different types of energy have emerged, with other researches still underway. Different reactions from various countries have shown concern over these forms of energy, with other countries supporting their implementation while on the other hand others totally opposing it.

These differences are because of the interests or benefits that these energies have to these nations. Biodiesel is one of the energy that has stimulated different reactions among various countries like Canada, the US, and European Union among others.

These countries are in support of biodiesel, over other traditional forms like carbon-emitting diesels fuels, which is currently under heavy use. As opposed to this traditional diesel fuel, biodiesel is more environmental friendly because it does not pollute air despite its low carbon components that cause slight environmental pollution and health hazards.

Therefore, the proponents are of the view that this fuel will provide more positive returns once fully implemented and adapted as opposed to the fossil fuels used in manufacturing petroleum diesel. Biodiesel comes from animal fats or vegetable oils and finds its use in engines.

Its production when compared to ethanol is less across the globe. Those opposed to the biodiesel implementation hold that it may lead to food shortage, as it will mean the direction of much acreage of lands towards the production of the fuel. Therefore, as a result, this issue has resulted into a debate among various groups; governments, civil societies groups, private sectors industries, environmentalists and many other interested parties on its implementation.

These parties have and still are employing different strategies for them to win over their opponents in this debate as they give out reasons to support their stances. One of the parties in support of the use of biodiesel fuels is the US government.

Supporters of Biodiesel Policies

The US government is in support of the policies concerning the use of biodiesel fuels. This stand follows a variety of reasons. Firstly, the production of the fuel does not inconvenience the feeding of their animal.

Soy oil is extracted from the soybeans, which is fed to animals hence enabling full usage of bean products (Demirba 54). It is therefore a more beneficial way of producing fuel, as one can use the waste oil and fats from restaurants for its production. Furthermore, more researches are underway to find out other plants like algae, which can produce oil.

These efforts narrow down to getting a substitute to other fossil fuels. There is also an advantage of putting into use the biodiesel fuels since it will cut costs of foreign importation. The US imports a lot of fuel from producing countries hence incurring heavy costs.

This alternative will be a relief to its expenditure, as biodiesel production will help it in cutting the amount t of oil that is imported. More so, the production of biodiesel in the US will also reduce the amount of carbon intoxication hence reducing the rate of air pollution (Pin Koh 1370). It will foster conserving of environment, following the reduced emissions because of using biodiesel, which is less toxic.

Furthermore, adapting to the biodiesel will increase the markets for farmers for the oil seeds crops. Farmers can practice alternative or rotation by planting food products like wheat at the same time growing these oil seeds. Such initiatives are best avenues in ensuring the reduction of poverty in the rural areas, as they will provide avenues for creation of employment and other sources of income.

The people in rural areas will also access to energy for their local needs. The UK is another country that is committed towards supporting biodiesel production policies.

In the UK, there are various conditions that the government has put in place to curb any from of carbon emission. This is an initiative aimed at ensuring the adoption of proper environmental conservation methods by the largest emitters.

For instance, the government has introduced a trading scheme to green house gases to ensure that they buy allowances from it in order to be accountable to their actions, restrictions aimed at ensuring the companies’ improved efficiency as well as reduced emissions (Keck and Sikkink 75). Those adhering to the calls receive bonuses as opposed to those who are against who incur penalties.

This trend therefore, is attributed to the continued use of petroleum oil products, which emit toxics. Therefore, as a way to ensure control or reverting to more environmental friendly methods like use of biodiesel fuels, the government had to provide these licenses (Presser 43).

For instance when compared to these conventional fuels, biodiesel fuel is less toxic ad therefore most preferred than the former. Speaking in favor of biodiesel, researchers have come in handy to address the effects of other forms of energy, for instance green house gases.

Researchers associate green house gases with health hazards arousing the need to find other ways to reduce the effects. Vehicles too lie among the highest polluters of the environment since they use these conventional fuels, which contain a lot of carbon dioxide.

Therefore, following the establishment of the various legislations concerning the reduction of the importation or usage of these fuels, the UK government has come out fully to support the matter campaigning for biodiesel usage.

Therefore, it is obvious that these types of fuels will act as an alternative as they have less effect on the environment and on human health. Canada is also committed towards development of biodiesel industry and hence a devoted supporter of the biodiesel policies.

Addressing the issue as it stands in the EU, the largest biodiesel producer, Kutas, Lindberg, and Steenblik point out the various policies in place in support of biodiesel policies (5). Canada is one of the countries across the globe that has embraced the idea of adapting to renewable forms of energy. This explains the formation of Canadian renewable full association (CRFA) in 1984.

This was a clear indication of how the Canadian government was committed towards ensuring that they achieve their mission of embarking to other alternative forms of energy.

For instance, while the other forms of energy suffer underdevelopment, the biodiesel is significantly developing (Kutas, Lindberg and Steenblik 12). This adaption targets reducing the carbon emissions ensuring that their transport services improve, and that environment receives its due protection from pollution.

Furthermore, there is the need to promote economic growth by ensuring that its citizens secure jobs for their upkeep and promotions of better future. For instance, with this initiative Canada has managed to offer more that 14,000 job opportunities to its citizens to provide support for the operation of the production of fuel.

These efforts by the federal government of Canada have received support in most occasions by various bodies: private partnerships supporting its efforts in embarking on the renewable forms of fuel. An example of these bodies include the Grain Farmers of Ontario which is a partner to CRFA, Koch logistics, Koch farms, marketer Fs partners , biodiesel blendes among other bodies (Keohane and Nye 43).

These groups have launched a campaign led by a slogan ‘Powered by Biodiesel’ to ensure that the government achieves its set goals. Therefore, the government is committed and 2% biodiesel blend mandate is set to start on 1 July 2011. This step passes for a great milestone for the Canadian federal government in achieving a homegrown renewable biodiesel.

Canada has a positive attitude towards the plan, which is a greater achievement set to drive the economy higher. Canada’s driving force for greater use of biodiesel is a state fact that it is concerned with the effects of global warming which brings devastating effects.

Therefore, by adapting to biodiesel it will ensure reduction of carbon emissions when compared to the use of petroleum products (Dauvergne 1090). The use of biodiesel is convenient, as it does not require any engine modifications, new refueling stations or new parts for it to operate. France has also set up biodiesel industry, which is currently in operation.

France has also one of the highly consumers and producers of the biodiesel fuel. In fact, it is the highest producer using it in heating oil and as a blend with the petro-diesel. Various countries employ different strategies either in support or in opposition to the development of biodiesel industries.

Strategies Used

Different governments have been using different strategies to ensure that they switch to biodiesel alternatives. Most countries have been adamant to embrace biodiesel fuel because for the fear of high costs of production.

This has led to laxity and many governments have been adamant despite the fact that this is a better form of fuel, which has little effects on the environment. Other reasons have been the fear of encountering food shortages because of focusing on the production of products meant for the production of the biodiesel among others.

This has led to many countries not giving this idea a second thought. However, a number of countries across the globe are slowly by slowly embracing the need to begin the production of biodiesel fuels. Among these nations are the US, France, Canada and European Union. They have employed different strategies including the enactment of government policies.

Government Policies

Governments have been at the forefront in pushing for the introduction of the biodiesel fuels policies. Most of the countries, which have already implemented the production of biodiesel, have succeeded because they have received massive government support.

Taking the EU as an illustration, “…the first policies promulgated by the European Commission in support of biofuels focused on the possibilities for tax exemption” (Kutas, Lindberg and Steenblik 16).

Likewise, those, which have not yet implemented is because their government s are adamant and have not bought the idea. For instance, in the case of Canada, the policy to use renewable resource received support form the president hence facilitating its implementation.

The government had not showed the desire before explaining why it could not be easy for the program to be implemented (Van Gerpen and Goering 86). In addition, the assembly, recommending the introduction of production of the biodiesel, passes various legislations. Such motions passed in the assembly aid in the implementation of such programs.

Provision of subsidies and tax reduction or exemption is another strategy that is used. The issue of government policies, subsidies, and amalgamation among others addressed in this paper are among the working strategies used in the governments’ pursuit of addressing their stands concerning the policies under study.

Provision of Subsidies

Government also can provide subsidies and tax exemptions to various institutions or industries to set up or encourage production of biodiesel.

Germany, Italy, and France for instance provide the best illustration of this issue. “Italy and France were the first EU countries to apply quotas to the amount of biofuel… biodiesel was also tax exempt in Germany” (Kutas, Lindberg and Steenblik 16). These subsidies and tax breaks are meat to stimulate various sectors to start production of the biodiesel.

Many countries have tried this strategy, one of them being Malaysian. Despite its introduction, it is unfortunate since it did not succeed because of the lower prices from the petroleum products going at low prices (Balat 50). This fact therefore made it difficult for this strategy to work and be successful.

Governments also use mandates. Countries like Latin America, Asia and some countries in Africa have adapted the use of mandate in the promotion and motivation of use of biodiesel. China also adapted to mandate as it only permitted five biodiesel facilities to operate. Amalgamation is another strategy that governments should put into consideration.

Formation of Amalgamation

Amalgamation is a working strategy that most countries should employ in order to adapt and implement biodiesel production. They need to form partnerships with big agricultural corporations, industries or even other well-established fuel production companies like Shell and BP (Carl and Zilberman 31).

For instance, a government can provide incentives to an agricultural corporation to promote it in buying and planting those oilseeds for use in the manufacture or production of the biodiesel.

Such initiatives are strategies that a government can employ in order to ensure that its objective of ensuring that biodiesel production becomes a reality. Other strategies are imposition of government restrictions.

Restrictions Imposed by the Government

Government can also come up with its restriction though denial of trading licenses in the petroleum products and fossil oils and promote the use of biodiesel fuel. This is a strategy aimed at minimizing the rate, at which people use petroleum products, as compared to the biodiesel fuel.

Another way is through limitation of importation of petroleum products in the countries and encouraging people to adapt to the biodiesel fuels. Furthermore, a country can use price as its strategy in ensuring that the people use the biodiesel products by increasing the prices of the petroleum products.

All these are strategies that the government can employ to ensure that it promotes use of biodiesel as opposed to petroleum products. Lobby groups and environmental activists is also one of strategy use to ensure that governments embrace development o biodiesel industries.

Environmental lobby groups

These groups can make wonderful strategies to push governments into embarking on the usage of a clean form of energy like biodiesel as opposed to the petroleum products. The activists groups, if well put into practice, influence major policy makers to consider reverting to renewable source of energy across the globe.

For instance, through their campaigns, on the effects of petroleum products they can lead to a great reformation and change policies (Martinot 27).

These groups too address the devastating effects of petroleum products to the health of human beings and destruction of the ozone layers hence pushing or convincing policy makers to change their forms of energy they use. In advancing their instance, the government and civil groups employ various political and power theories. For instance, liberalism political theory convinces the stakeholders to lean towards a certain desired direction.

Political theories

Liberalism theory is a political conjecture, which aims at making reforms in politics, economic and social spheres of life. It promotes liberty of individual, through ensuring that there is judicial defense, and that the country upholds its constitution.

Therefore, it begins and ends with individual freedom, human rights and happiness. This theory is therefore is employed in the governance of the states and making of policies regarding different things or activities.

For instance, in the case of development of biodiesel fuel, the governments need to respect all organs of government and uplift the rights of people. For instance, there is need for the government to come up with policies that will be in tandem with those of the citizens.

In this debate of either developing biodiversity industries or continuing to use petroleum fuels from fossils, the leaders should be cautious weighing the right options before making a decision on which way to go.

They need to list down the advantages of selecting one of the methods coming up with a ranking list to be able to go for the option that will favor economic growth, promote political stability and enhance socialization at the same time promoting their rights to good health and environment.

Researches conducted show that the petroleum fuel components bear soaring percentages of carbon, which is dangerous to the health of people and even to the future generation due to the effects it has on the ozone layer, which results to global warming.

Therefore, the best method that governments need to implement may be that of biodiesel production since it has less effect on environment and human health. It will therefore foster good economic growth, as people will be able to work hard due to their healthy sates and be able to achieve their objectives.

Furthermore, it will also promote political stability, as there will be reduced cases of mismanagement because each country will be able to have their own production units. Marxist political theory is also adapted by other countries in their debate about whether or not to allow development of biodiesel industries. Marxist theory is another political supposition advanced by Karl Marx.

The theory is a social change speculation that seeks to explain why and how social changes take place and come to effect. It is a working class theory which individuals seek to obtain material factors through employment of dialectic ,materialistic approach whereby they want to gain more resources and become better.

Therefore, there are some leaders or governments, which revert to use of biodiesel fuel because of the benefit accruing from its use. There are also some countries, which will be involved in advocacy and campaign initiatives world wide for them to benefit. Likewise, many countries like Canada have embarked on initiatives t o invest in biodiesel fuel production because they want to promote the growth of their economy.

For instance, since the beginning o f this program in 1984, many people have been able to secure employment opportunities in the industry. This has stimulated the growth of their economy and enhanced healthy living of its citizens hence uplifting their living standards.

It is a good example of how Marxist political theory operates. Since the government and people of Canada saw the benefit of biodiesel fuels, they supported it and worked hard towards achieving it. Power theory of aggression also applies in various stances taken by various countries on the issue of biodiesel industries.

Postulated by Leopold Kohr, the hypothesis aims at waging wars involving in atrocities. Therefore, in line with the discussion topic, there are various countries against the introduction of biodiesel fuel, claiming that it poses danger to their economic growth.

They propose the use of petroleum since its products are their main export products and therefore a source of income. This therefore, raises tension and aggression between those countries supporting the move and those against hence creating some tensions.

It is clear that when biodiesel fuel policies succeed as predicted, those countries producing petroleum fuel will not be in good terms with each other due to the impacts therein. Therefore, various countries have decided to carryout intense research to have a clear understanding of how they can boost efficiency and improvements of the biodiesel industry.

Research and Innovation

Many countries, lead by the federal governments countries, Canada, the US and the EU have intensified research in the area of biodiesel in order to come up more advanced and appropriate ways in which they can adapt alternative source of energy; biodiesel fuel.

Various research programs have been put into action with the aid of technology to provide better ways of energy production. These inventions are geared or are in line with ensuring that there are minimal environmental pollutions, and in reducing effects of global warming.

Effects of petroleum products that are produced from fossil poses a greater danger to the ozone layer and to the future life and health of people. In addition, these petroleum products pose a great danger to the ecosystem on land because of these extractions.

Another area of concern is the fact that these resources may come to exhaustion after some time. Therefore when the petroleum products are extinguished, there is need to have some alternate forms or source of energy that will be relied on to ensure that the process of economic growth goes on smoothly without any inconveniences.

These reasons among others have led to the intensification of research to be able to find a lasting solution to these problems which are facing the world today and which may face the future generations. Despite the efforts, there are some discrepancies in the commitment and innovation of the biodiesel production

Discrepancies in the Commitment and Innovation of Biodiesel

As other countries are motivated and committed towards biodiversity, there are other countries, which show no commitments to such developments and innovations. Most of the countries especially in the Middle East and North Africa, where most of petroleum and oil resources occur, are not committed towards the effort of ensuring the initiation of biodiesel production.

The reason behind their resistance and laxity is the fear of economic collapse as their major source of income is from the importation of these oil and petroleum products and crude oils to western countries.

Therefore, this forms the basis of resistance. The issues of environmental conservation and air pollution does not count much to them as their main interest is to be able to produce more products and be able to sell and get higher profits. Such countries are being led by the political theory of Marxists (Simoes and La Rovere 1330).

They are aiming at improving their economy through the sell of petroleum product to those countries and regions that have no petroleum wells. They are not concerned about the effects like global warming and do not seem to care about the coming generations, the health implications, and even the alternative sources of energy after the exhaustion of their current wells.

Some of these nations opposing the biodiesel have also established or put in place different measures to avoid the introduction of biodiesel production in their countries. For instance, they place restrictions and tough measures to prevent any party or organization that is agitating for its introduction not to engage in any activity leading to its introduction.

For instance, they do not provide incentives to these groups deterring their actions and plans. These make it hard for such groups and environmental activists to voice up their concerns hence leading to dependence on petroleum products as oppose to biodiesel production. Another discrepancy witnessed is lack of tax reductions and provision of subsidies.

As Marxist political theory suggests, nations want to improve their economy through production ad exportation of fossil fuel products hence they deny any form of subsidies to those industries investing in production of biodiesel production.

They achieve this by not providing tax restrictions and subsidies to the people. They are not liberalism but what they want to achieve is a growth in their economy. They also cut down their petroleum products hence making those companies dealing in production of biodiesel have difficulties in carrying out their operations.

Politics also play a key role in those countries supporting as well as those opposing the introduction of biodiesel. Government’s proponents of petroleum products are beneficiaries or to some extent have interest in the petroleum industries.

Many leaders are enticed by the large countries producing petroleum fuel and exporting to them to continue using their products for their own benefits. Such actions deter the reform process and formulation of policies to ensure reverting to these renewable resources and non-toxic energies.

Leaders or politicians in many countries have the mandate of forming/ making laws and amending them entrusted to them, and therefore in most cases they use this opportunity to serve their own industries in the expense of the interests of the people. Another discrepancy is lack of cooperation among some countries.

Attainment of a unified world that fully uses biodiesel is miles away. This is a noble idea if all the countries across the world could embrace and work together towards its achievement. The problem comes when there is a difference of opinions and interest between different countries.

These differences come about due to different of opinions, interests and fear of running into economy slump and therefore not being self-sustainable. This lack of cooperation has seen other countries embrace the idea of biodiesel production as others reject it. Another reason attributed to the lack of cooperation among countries is political and social ideologies.

Most countries that produce crude oil and fossil products are mostly Arabic, while those agitating for adaptation of biodiesel are mostly from the West. These differences also explain the differences in ideologies towards each other, which digs into the issues of cooperation. These two factions hold different views when it comes to their ideologies.

Therefore, it becomes a bit difficult to ensure that these two factions come into terms and consensus of issues related to biodiesel. Therefore, in conclusion, there is need for all the leaders around the globe to come into consensus and make a good decision to ensure a safety and clean environment by adapting to the safe forms of energy.

Many countries have continued to use petroleum fuels because they have been less expensive and easily accessible. This has made them opt to use the fuel even without considering its effects. Lack of education and awareness contributes towards the continued use of the petroleum products.

This usage without clear understanding of its effects emitted because of carbon makes people to continue using it. It is the highest time that better research on biodiesel policies is done and proper mechanisms put in place to ensure a large-scale production of biodiesel. This will serve to prevent intoxication and reduce the rate of health hazards.

It is also recommendable that every countries both supporting and those opposed to join hands and ensure that they support this alterative energy policies, as it ensures that the future generation is not affected adversely through the current usage of fossil fuels.

This transformation will require the support of everybody for it to succeed. Therefore, legislations should be passed to ensure that the production of biodiesel in large amount or commercial purpose is passed.

This will be a solution to most of the problems encountered by people in their day-to-day lives, guaranteeing a clean and a safe future for the coming generations. This paper too addresses various recommendations, which countries should practice to ensure that the world embraces a cleaner, renewable and non-toxic form of energy particularly biodiesel.


Different strategies have been adapted by various countries in ensuring that biodiesel industry is operational and the preferred form of energy. These strategies have included, government’s efforts to form legislations supporting the introduction of biodiesel products, tax reduction and subsidies, efforts from environmental activists, and partnerships among others.

These methods or rather strategies have to a large extend aided various countries in adapting to development of biodiesel industries, a good example being Canada.

Therefore, I recommend that apart from the above strategies, countries’ top leaders should call for a meeting to discuss at length the importance of biodiesel form of energy production. Political leaders should set aside their differences and ideologies and come to the rescue of the future generation and the prevention of environment pollution through embarking on the more renewable and non-toxic form of energy. For them to understand there is need for each country to support each other so that all the parties buy the idea.

There should be education of people on the importance of using biodiesel as opposed to petroleum production. With this knowledge imparted to them, they can make good decisions, which best address their needs.

Therefore, all the parties should embrace the liberalism political theory, which fosters respect among people without hesitation. This will also assist in empowering people, which eventually will see them demand their rights to have their preferred policies put into use.

This in one way or another will give the biodiesel policies a good share of votes, hence paving way for the establishment of more and more biodiesel industries until a foreseen time when the other forms of energy will be no more.

Works Cited

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Carl, Pray, and Zilberman, David. The Emerging Global Biofuel Industry: The Biofuels Situation and Policies in Developing Countries. Britain: Longmans, 2006.

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Demirba, Ayhan. Biodiesel: A realistic fuel alternative for diesel engines. New York: Hoffman Publishing, 2008.

Keck, Margaret, and Sikkink, Kathryn. Activists beyond Borders: Advocacy Networks in International Politics. Ithaca: Cornell University Press, 1998.

Keohane, Robert, and Nye, Joseph. Power and Interdependence. New York: Longman, 1977.

Kutas, Geraldine, Lindberg, Carina, and Steenblik, Ronald. Biofuels-At what Cost? Government Support for Ethanol and Biodiesel in the European Union. Switzerland: Winnipeg, Manitoba, 2007. Print.

Martinot, Eric. “Renewable Energy Gains Momentum.” Environment, 21.4 (2006): 26-43.

Pin Koh, Lian. “Potential Habitat and Biodiversity Losses from Intensified Biodiesel

Feedstock Production.” Conservation Biology, 21.4 (2007):1373-1375.

Presser, Caxton. Biodiesel 2020: A Global Market Survey, Feedstock Trends and Forecast. Oxford: Emerging Markets Online, 2008.

Simoes, Andrew, and La Rovere, Edwards. “Energy Sources and Global Climate Change: The Brazilian Case.” Energy Sources Part A: Recovery, Utilization, and Environmental Effects, 30.6 (2008): 1327-1344.

Van Gerpen, Jon, and Goering, Carroll. Biodiesel: An Alternative Fuel for Compression Ignition Industries. Michigan: ASABE, 2007.

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