All too often, well meaning politicians respond to environmental concerns by rushing in with legislation encouraging technologies without properly considering the big picture. In this case, the EU responded with subsidies to encourage the use of palm oil as a replacement for fossil fuels in order to reduce the potential for global warming. The result was the opposite of their "well meaning" intentions with huge amounts of CO2 released in the process.
From A NY Times article:
Once a Dream Fuel, Palm Oil May Be an Eco-Nightmare By ELISABETH ROSENTHAL Published: January 31, 2007
"AMSTERDAM, Jan. 25 — Just a few years ago, politicians and environmental groups in the Netherlands were thrilled by the early and rapid adoption of "sustainable energy," achieved in part by coaxing electrical plants to use biofuel — in particular, palm oil from Southeast Asia.
Spurred by government subsidies, energy companies became so enthusiastic that they designed generators that ran exclusively on the oil, which in theory would be cleaner than fossil fuels like coal because it is derived from plants.
But last year, when scientists studied practices at palm plantations in Indonesia and Malaysia, this green fairy tale began to look more like an environmental nightmare.
Rising demand for fuel derived from plants has brought about the clearing of huge tracts of Southeast Asian rainforest for palm plantations."
Read the whole article:
http://www.nytimes.com/2007/01/31/business/worldbusiness/31biofuel.html?ex=157680000&en=0e1a01cb17368f0b&ei=5124&partner=permalink&exprod=permalink