It was recently reported in The Australian that the importing of biofuels by Australia is contributing to the destruction of rainforests in Malaysia Indonesia. The rainforests are being bulldozed in favor of palm oil plantations.

Palm oil imports for the purpose of creating biofuel is on the rise due to its low cost and the demand for the cheap biofuel is only expected to rise. New South Wales is expected to legislate its first biodiesel mandate at two percent for this year and five percent as soon as the demand can be supplied.

The import of the palm oil is essentially subsidized by the government since it is not subject to the same taxation as ethanol.

The irony is that the Australian government assisted deforestation is in stark contrast to its $200 million plan to reduce deforestation in the region.

Among the animals effected by the loss of the rainforest are orangutans and the rare clouded leopard.