The European Union has been urged to drop its pledge to produce 10 per cent of all transport fuels from biofuels by 2020 because of the effect this has had on the purchase of African land by multinational companies.

According to a report released on August 30 by a UK-based campaign group, Friends of the Earth, the amount of land being taken in Africa to meet the EU's rising demand for biofuels "is underestimated and out of control."

Its report echoes findings from another UK aid agency, Action Aid, which predicts that the EU biofuels target could result in up to 100 million more hungry people across the continent, increased food prices and landlessness.

The report's findings are challenged by companies who argue that they typically farm land not destined or suitable for food crops.

It's an argument rejected by the Friends of the Earth report, which argues that biofuel crops — including non-edible ones such as jatropha — "are competing directly with food crops for fertile land.

"The African continent is increasingly being targeted as a source of agricultural land and natural resources for the rest of the world.

"National governments, private companies and investment funds are buying up access to land across the continent to grow crops for food and fuel."

The FoE report concentrates on 11 African countries, including Kenya and Tanzania, where it says that around 40 foreign owned companies have invested in agro-fuel developments.

It says that many of the activities are actually raising carbon emissions because virgin forests are being chopped down to make way for the crops.

This report looks in detail at the deals for agrofuels and questions the impacts on local communities and the environment.

It finds that although information is limited, there is growing evidence that significant levels of farmland are being acquired for fuel crops, in some cases without the consent of local communities and often without a full assessment of the impact on the local environment.

The FoE report estimates that a third of the land sold or acquired in Africa is intended for fuel crops — some 5 million hectares.

While some of this land is sold outright — to private companies, state companies or investment funds — most is leased and some is obtained through contracting with the farmer to grow specific crops (known as "outgrowing").

Downsides

A number of, often small, EU companies are involved, sometimes with support or involvement from their national government.