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The government needs to distinguish between good and bad biofuels before making a decision on their future use, according to the Renewable Energy Association (REA).
A government-backed review of the impact of using farmland for the provision of raw materials for biofuels is expected to be published in the next few days.
Concerns have been expressed by some groups that the switch to low carbon vehicles powered by such fuels has actually had a negative effect on the environment and has helped to push up food prices.
The REA's head of transport biofuels Clare Wenner admitted that people are right to be concerned about what she described as bad biofuels but insisted the government should focus on how good biofuels can be used to help the country hit EU renewable energy targets.
Ms Wenner said the government should not be forced into a "panic decision", adding: "UK-produced biofuels are already achieving major reductions in carbon emissions, and doing it sustainably. For example, bioethanol produced in East Anglia saves over 70 per cent carbon compared to petrol."
Meanwhile, the Sun has reported that Mercedes hopes to phase out petrol and diesel engines from its new vehicles within seven years.
Find out more about 'alternative car fuel' here.
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