In particular, governments should encourage technical innovation as a way of narrowing the price gap between “biomass” and oil and gas products. This would stimulate demand and boost the supply of bioproducts. Already, the recent high oil prices has underlined the potential increased cost competitiveness of energy and raw materials produced from biomass.
The report goes as far as to argue that a shift could take place this century from a fossil fuel to a biomass-based economy. To aid this process it suggests creating carbon markets which would provide credits to biomass producers for displacing fossil fuels.
For more on this, see links below.
©OECD Observer September 2004