A new study by the IFPRI analyzes the question of indirect land-use change (ILUC) in relation to the EU's Renewable Energy Directive. It finds that ILUC issues are a valid concern, but that the impact depends on the type of feedstock crop used as well as other factors such liberalization of international trade in biofuels.

Global demand for biofuels has risen sharply over the last decade, driven initially by oil price hikes and the need for greater energy security.