Three key disadvantages of biofuels—and why they matter now

Biofuels face three major drawbacks: land-use and biodiversity impacts that can undermine climate goals; competition with food production and water resources; and technical and economic trade-offs, including lower energy density, infrastructure constraints, and some pollutant emissions. As governments recalibrate climate policies—from the U.S. Renewable Fuel Standard updates to the EU’s phaseout of high–ILUC-risk feedstocks—these limitations are shaping which biofuels will scale and which will be sidelined.

The main drawbacks at a glance

The following list outlines the three most consequential disadvantages of biofuels as identified by recent policy assessments and scientific analyses. Each point captures a cluster of related issues that policymakers and industry must manage if biofuels are to deliver on climate and energy goals.

• Land-use change and biodiversity loss can erase or delay climate benefits, especially when forests, peatlands, or grasslands are converted to grow biofuel feedstocks.
• Competition with food crops and high water demand can strain food security and freshwater systems, particularly during droughts or commodity price spikes.
• Technical and economic trade-offs—lower energy density, vehicle and infrastructure limits, and certain pollutant emissions—reduce efficiency and can require costly mitigation.

Taken together, these disadvantages explain why policy now favors waste-based and advanced biofuels over crop-based fuels, and why robust sustainability criteria are increasingly non-negotiable.

Why these drawbacks matter

1) Land-use change and biodiversity risks can undermine climate goals

The climate case for biofuels hinges on their full lifecycle emissions. When forests or grasslands are cleared to grow energy crops, the released carbon (“carbon debt”) can take years to decades to repay. Indirect land-use change (ILUC)—when existing cropland shifts into natural areas due to new biofuel demand—can add significant hidden emissions. Scientific literature shows wide variance: some pathways, like fuels from residues, wastes, or rapidly regrowing grasses on marginal land, can cut emissions substantially, while others (notably certain crop-based fuels linked to deforestation or heavy fertilizer use) can approach or even exceed fossil fuel emissions over meaningful timeframes. Biodiversity loss compounds the problem, as habitat conversion for palm oil, soy, or sugarcane has been tied to declines in species richness. Reflecting these risks, the EU classifies palm oil as a high ILUC-risk feedstock and is phasing it out of road transport targets by 2030, and global certification schemes are tightening no-deforestation rules.

2) Food, fertilizer, and water pressures

When edible crops like corn, wheat, sugarcane, soy, or vegetable oils feed fuel markets, they can intensify competition for arable land and inputs. This can contribute to price volatility for staples, especially during shocks such as droughts, conflicts, or trade disruptions. While biofuels are not the sole driver of food inflation, they add demand in tight markets. Water is a parallel constraint: irrigated feedstocks can have large water footprints, and fertilizer runoff from intensified cultivation fuels eutrophication in rivers and coastal zones. Regions already facing water stress—parts of the U.S. Midwest during dry spells, or drought-prone areas in Brazil and India—see heightened trade-offs when biofuel crops expand. Policy responses increasingly prioritize non-food feedstocks and waste oils, though supplies remain limited relative to total fuel demand.

3) Technical and economic trade-offs in the real world

Even when sustainability concerns are addressed, practical limitations remain. Ethanol’s lower energy density means vehicles burn more volume per mile; E85 can deliver roughly 25–30% fewer miles per gallon than gasoline, depending on engine optimization. Biodiesel and renewable diesel have better energy content profiles, but legacy engines and distribution infrastructure may have blend limits without upgrades. Air quality is another factor: while some biofuels cut particulate matter and carbon monoxide, certain blends can raise nitrogen oxides (NOx) or produce aldehydes, requiring modern aftertreatment to manage. Finally, many biofuel pathways depend on supportive mandates or credits to compete with petroleum and rapidly falling-cost electrification; policy changes can whipsaw project economics, as seen in periodic revisions to the U.S. Renewable Fuel Standard volumes and evolving EU transport targets.

Context and policy trajectory

These disadvantages are driving a pivot toward advanced and waste-based biofuels—such as fuels from agricultural residues, municipal solid waste, used cooking oil, and non-food energy crops—paired with strict land-use safeguards. The EU’s updated rules cap and phase down high–ILUC-risk inputs, while the U.S. has increased targets for advanced biofuels through 2025 even as conventional volumes plateau. Aviation, where batteries are less practical, is emerging as a preferred outlet for sustainably sourced biofuels, but supply remains scarce and cost premiums are significant.

Summary

Three core disadvantages of biofuels stand out: land-use and biodiversity impacts that can negate climate gains; competition with food and water resources; and technical-economic trade-offs, including lower energy density, infrastructure limits, and some pollutant emissions. These challenges don’t preclude a role for biofuels, but they narrow it—favoring waste-based and advanced pathways with strong sustainability guardrails, especially in hard-to-electrify sectors like aviation.

What is the main problem with biofuels?

A significant problem with biofuels is the competition for land and water resources with food production, which can lead to increased food prices, food insecurity, and deforestation to create new farmland for biofuel crops. Furthermore, biofuel production and burning can release air pollutants like ozone and nitrogen dioxide, posing risks to public health. 
Competition for Resources

• Food Prices and Security: Opens in new tabGrowing crops for biofuels requires vast amounts of land, water, and fertilizers, diverting these resources from food production. This reduced supply of food crops can drive up prices, threatening food security, especially in lower-income countries. 
• Deforestation and Habitat Loss: Opens in new tabTo expand biofuel crop cultivation, natural habitats like forests and grasslands are often cleared. This deforestation leads to habitat destruction, loss of biodiversity, and the release of stored carbon from trees into the atmosphere. 
• Water Strain: Opens in new tabThe large volumes of water needed for growing biofuel crops and refining them can deplete underground aquifers, which are also used by farmers for irrigation. 

Health and Environmental Impacts 

• Air Pollution: Opens in new tabThe burning of biofuels and emissions from biofuel refineries can release toxic particles, ozone, and nitrogen dioxide into the air. These pollutants can trigger respiratory illnesses like asthma and are associated with heart attacks, cancer, and premature death, particularly affecting vulnerable groups like the elderly and children. 
• Soil Degradation and Water Contamination: Opens in new tabThe intensive farming practices often used for biofuel crops, such as monoculture, can lead to soil degradation. Runoff from fertilizers and pesticides used to grow these crops can also pollute soil and water sources. 
• Greenhouse Gas Emissions: Opens in new tabWhile often presented as a carbon-neutral alternative, the process of producing and refining biofuels can result in significant greenhouse gas emissions, sometimes comparable to or even exceeding those of fossil fuels, especially when deforestation and land-use changes are involved. 

What are 5 disadvantages of renewable energy?

Here are some of the cons of renewable energy projects today:

• High upfront costs.
• Location and landmass requirements.
• Production volatility.
• Storage requirements.
• Supply chain limitations.
• Carbon footprint and waste.

What are 5 disadvantages of biofuel?

What are 6 disadvantages of biofuel?

• Biofuels, derived from organic matter like plant materials and animal waste, offer a promising avenue for renewable energy.
• Land Use Issues.
• High Cost.
• Food Security.
• Energy Intensive Production.
• Limited Availability.
• Greenhouse Gas Emissions.

What are the advantages of biofuels?

The main advantages of biofuel are that it’s a renewable energy source, which reduces dependence on finite fossil fuels, and can help lower greenhouse gas emissions compared to traditional fuels. Biofuels also contribute to energy security, support the agricultural sector, and can provide a domestic energy source, reducing reliance on imports. Additionally, producing biofuels from waste products or non-food crops offers environmental benefits like improved soil health and reduced methane release from landfills.
 
Environmental Benefits

• Renewable Resource: Opens in new tabUnlike fossil fuels, which take millions of years to form, biofuels are made from plant and animal matter and can be replenished quickly, making them a sustainable alternative. 
• Reduced Greenhouse Gas Emissions: Opens in new tabBurning biofuels can result in a net reduction of carbon dioxide and other greenhouse gases into the atmosphere. 
• Waste Reduction: Opens in new tabUtilizing waste materials like agricultural residue, forest waste, and used cooking oil for biofuel production prevents their decomposition and the release of methane into the atmosphere. 

Economic and Social Benefits

• Energy Security and Independence: Opens in new tabBy utilizing domestically produced biomass, countries can reduce their reliance on imported fossil fuels, enhancing national energy security. 
• Support for Agriculture: Opens in new tabBiofuel production creates new markets and revenue streams for farmers, supporting the agricultural sector and potentially leading to longer-term investments in sustainable practices. 
• Economic Development: Opens in new tabDeveloping a local biofuel industry can lead to wealth creation in rural communities by providing new energy sources and jobs. 

Other Advantages 

• Soil and Land Improvement: Opens in new tabSome biomass used for bioenergy, such as native prairie grasses, can be grown on land that is not suitable for farming, helping to improve soil health and provide habitats for wildlife.
• Reduced Air Pollution: Opens in new tabUsing biofuels can help reduce the release of harmful air pollutants from vehicle tailpipes, contributing to better air quality.