China Sets Biofuels Moratorium

China announced a moratorium on the production of ethanol from corn and other food crops Monday, at the same time that Western leaders are moving to embrace more alternative fuels, the Times of London reported Tuesday.

The move by Beijing’s government underlines concerns that ethanol production is rapidly driving up the costs of foodstocks like corn and grain, the Times reported on its Web site.

And the action appears to reflect a growing reality that grain-based alternative fuels are far more expensive both economically and environmentally, than many Western politicians admit, the paper said.

Calls for biofuels are politically attractive for European and U.S. politicians, amid rising oil prices and concerns about global warming and reliance on Middle Eastern oil, the Times said.

The Washington Post reported Friday that the costs of producing biofuels long-term in the United States could run into billions in government subsidies.