Former vice president Al Gore said support for corn-based ethanol in the United States was "not a good policy," weeks before tax credits are up for renewal.
U.S. blending tax breaks for ethanol make it profitable for refiners to use the fuel even when it is more expensive than gasoline. The credits are up for renewal on December 31.
Total U.S. ethanol subsidies reached $7.7 billion last year according to the International Energy Industry, which said biofuels worldwide received more subsidies than any other form of renewable energy.
"It is not a good policy to have these massive subsidies for [U.S.] first-generation ethanol," said Gore, speaking at a green energy business conference in Athens sponsored by Marfin Popular Bank.
"First-generation ethanol, I think, was a mistake. The energy conversion ratios are at best very small," he said "It's hard once such a program is put in place to deal with the lobbies that keep it going."
He explained his own support for the original program on his presidential ambitions.
"One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president."
U.S. ethanol is made by extracting sugar from corn, an energy-intensive process. The U.S. ethanol industry will consume about 41 percent of the U.S. corn crop this year, or 15 percent of the global corn crop, according to Goldman Sachs analysts.
A food-versus-fuel debate erupted in 2008, in the wake of record food prices, where the biofuel industry was criticized for helping stoke food prices. … Read more