Professor Gallagher's review into the indirect effects of biofuel production acknowledged that there are uncertainties about the environmental, social and economic effects. However, he also concluded that there is a risk that the uncontrolled expansion and use of biofuels could lead to unsustainable changes in land use, such as the destruction of rainforest to make way for the production of crops. That might, in turn, increase greenhouse gas emissions, as well as contributing to higher food prices and shortages.
Professor Gallagher recommended that the Government amend but not abandon their biofuels policy. The Government agree with this recommendation and are currently consulting on a proposal to slow down the rate of increase of the RTFO.
The Renewable Fuels Agency is also required to include an assessment of the wider effects of biofuel production in its annual report to Parliament. This will enable the Government to continue to gather evidence on the impacts of biofuel use to help ensure that targets are set at appropriate levels.