The curious case of climate policy and corn ethanol


by Julia Olmstead | June 2, 2009 • Corn ethanol supporters’ claims that the fuel reduces greenhouse gas emissions are tenuous, at best. But corn ethanol might end up being the key to getting climate policy—specifically, the Waxman-Markey cap and trade legislation—through Congress.

Think Forward is a blog written by staff of the Institute for Agriculture and Trade Policy covering sustainability as it intersects with food, rural development, international trade, the environment and public health. The Institute for Agriculture and Trade Policy promotes resilient family farms, rural communities and ecosystems around the world through research and education, science and technology, and advocacy.

House Democratic leaders have vowed to move forward on the legislation, but a group of farm state representatives, including House Agriculture Committee Chair Collin Peterson (D-MN), are threatening to derail the bill.

They mainly want two things: for agricultural offsets to be regulated by the USDA, not the EPA (although as of now, Waxman-Markey does not include the role of farms or forests in emissions reductions scenarios); and to get indirect land use change out of the formula for calculating biofuels’ greenhouse gas emissions in the revised Renewable Fuel Standard (the RFS2 is part of the 2007 energy bill, and has nothing to do with Waxman-Markey). See my blog post related to indirect land use change here.

Rep. Peterson and the mainstream agriculture lobby don’t trust the EPA on agriculture, a feeling that was heartily confirmed when the agency made the decision to include indirect land use in the revised RFS. EPA-controlled climate credits, therefore, scare the heck out of them.

Peterson introduced a bill on May 14 that would ban indirect land use change from the RFS2, but despite its 46 co-sponsors, there’s been no sign yet from Congress that they’ll reopen negotiations on that part of the 2007 energy legislation. There’s no question, however, that Peterson and his supporters make up a large enough group to successfully stop Waxman-Markey if they so choose.

Whether Peterson gets his way on indirect land use or not, it’s clear that U.S. climate policy— both politically, as well as practically—will have to walk hand-in-hand with U.S. agriculture policy to succeed. We’ll write more soon on the connection between agriculture and climate policy, and specifically on the ways agriculture can play an important role in mitigating climate change.

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