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Biofuels and Indirect Land Use Change: The Case for Mitigation

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This study examines the four options being considered by the European Commission for dealing with indirect land use change (ILUC) arising from the use of biofuels under the Renewable Energy Directive. An alternative approach is developed that would encourage producers and growers to undertake practices that mitigate ILUC. This study identifies a range of ILUC mitigation practices and recommends a market mechanism to encourage such activities through the use of a carbon credit scheme.