Brazil calls on Brussels to scrap biofuel tariffs

"We cannot send out contradictory signals. The very governments who reiterated a commitment to sustainable development and to the reduction of greenhouse gases cannot then turn around and create obstacles to turning biofuels into international commodities," he said.

But EU capitals remain very divided on import tariffs with France keen to protects its farmers while Sweden is at the opposite end of the spectrum.

Swedish trade minister Sten Tolgfors on Thursday called on the EU to scrap its tariffs on biofuel imports to increase trade in the commodity. "We must combat all trade barriers," he said at the conference.

EU biofuels target

Biofuels are made of the same products as fossil fuels - plants, trees and animal waste – but have the advantage of being able to be produced straight from the product unlike fossil fuels that have been processed over millions of years.

EU member states vowed in March to replace 10 percent of transport fuel with biofuel made from energy crops by 2020. At the moment, the figure is only 1.8 percent and the European Commission sees the importation of biofuels as a way to reach that goal.

"Europe should be open to accepting that we will import a large part of our biofuel resources," said EU trade commissioner Peter Mandelson, also at the conference.

Brussels is keen to use biofuels as an important part of ensuring energy security in the EU and to limit the bloc's greenhouse gas emissions from fossil fuels like gasoline.

But there are also concerns that production of crops for fuel may contribute to wiping out rainforests as well as to rising food prices in developing countries.

"Our aim must be to develop an EU biofuels policy which meets our objective on security of supply and climate change, while ensuring sustainable development," said European Commission president Jose Manuel Barroso.

The EU executive is expected to come forward with a draft law by the end of the year, which will include minimum standards for sustainable biofuels production.

Green groups are keeping a close eye on the commission's legislation progress on biofuels.

"I am pleased that the European Union clearly states the need for standards, but it's too early to say whether I'll be pleased with the final outcome" said Jean-Philippe Denruyter from the Worldwide Fund for Nature (WWF).