Biofuels, what are the issues for a trading company?

Gehring, Jeremy ; Fragnière, Emmanuel (Dir.)

Mémoire de bachelor : Haute école de gestion de Genève, 2008 ; TDEE 66.

Biofuels are a way of diversifying our fonts of energy and reduce transportation environmental impact. In Europe, the emergence of this market is driven by policy. Biofuels can potentially bring solutions to energy market and give incentives to develop agriculture. But their development created a distortion on the markets and production sustainability is a serious issue. This makes the further... Plus

Ajouter à la liste personnelle
    Summary
    Biofuels are a way of diversifying our fonts of energy and reduce transportation environmental impact. In Europe, the emergence of this market is driven by policy. Biofuels can potentially bring solutions to energy market and give incentives to develop agriculture. But their development created a distortion on the markets and production sustainability is a serious issue. This makes the further development of biofuels uncertain and challenges trading companies willing to invest in this market. In order to respond to the sustainability issue, criteria are being implemented to the supply chain and certification systems are being developed. In the short term only environmental criteria are implementable. Through a qualitative ethnographic approach and an in-depth interview process, the research has peered into the stakeholder interests. It has been pointed out that an important part of the stakeholders was supporting the market. There is a lack of rational information concerning the potential of the industry and public opinion has build up a sceptical judgement. The study has pointed out that public opinion had an important role. Such beliefs will influence politicians. Therefore public opinion must be considered a key factor that makes the market uncertain and risky. For the moment this trend does not affect investors and market is growing. But in parallel to this the actors are asked to manage the sustainability issue, which represent a barrier to entry. As soon as producers will be in measure to create sustainable products and as soon as agriculture will develop, public opinion will be in a position to support this market and let it grow. Sustainability is thus an issue that producers must control. Traders willing to enter this market must therefore develop a management able to respond to this concern. The principal measure that must be taken is vertical integration. By controlling the production of the feedstock, trading companies can develop sustainable management of agricultural systems and integrate them to the supply chain. Biofuels sustainability is above all an agricultural issue and all the stakeholders must join their forces in order to meet all the requirements and therefore make the society benefit from the potential of this technology.