She said that while biofuels had the potential to cut carbon emissions there were "increasing questions" about them.

The uncontrolled expansion of biofuels might actually contribute to higher food prices and see the destruction of rainforests, she said.

Ms Kelly said she agreed with the conclusions of the Gallagher report to "amend not abandon" biofuel policies.

'Not sustainable'

A panel of government experts, chaired by Professor Ed Gallagher, head of the Renewable Fuels Agency, looked at the impact of biofuels on land use.

The report did not go as far as a damning study from the World Bank last week, which blamed biofuels for a 75% rise in food prices.

The EU has a target to source 10% of transport fuel from biofuels by 2020, but this could be overturned by the European Parliament.

Claude Turmes, energy spokesman for the Green Party in the European Parliament, told BBC Radio 4's The World at One: "This 10% agro-fuel target is just not sustainable.

"We can't produce this massive amount of agro-fuels, because it will have an impact on the world food prices and it is not the most efficient way to reduce CO2."

But Michael Mann, European Commission spokesman on agriculture, said: "We cannot possibly link the European Union's biofuels policies to food prices...

"The main reasons, frankly, is that there's a massive increase [in demand for food], particularly from the main developing economies and there have been terrible harvests."

Mark Avery, conservation director of the Royal Society for the Protection of Birds, said: "The review admits we are hurtling towards environmental disaster and should be used to put the brakes on biofuels.

"If it is not, the destruction of rainforest and grasslands will continue to enable biofuel production. And with that will come huge carbon emissions and widespread losses of wildlife."

(BBC)

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