EU agrees on 7% food-based biofuels cap

EU energy ministers have agreed to limit the production of biofuels made from food crops to 7%.

The ministers' compromise is welcomed following last year's deadlock when European Union governments failed to agree on a proposed 5% cap on the use of biofuels based from crops used in transport fuel.

The 7% compromise includes a 0.5% target aimed at second generation biofuels, but this is non-binding and critics argue it is too low.

This new 7% cap agreement must now be approved by the freshly-elected European Parliament.