Nowadays world faces crisis caused by growing energy demand. Threat of climate change caused by the increased emission of CO2 from burning of fossil fuels exerts pressure on wider use of renewable energy resources. It is believed that one of important resources of renewable energy are biofuels. In the paper we present that in the most cases it is not true. Wide use of biofuel, especially in European Union, poses threat to sustainable development of today’s world. It is going to be presented that the production of biofuels from agricultural crops is, in many cases, unsustainable due to the fact that it reduces the access to food by devoting cultivatable land to crops designated for the production of biofuels. What is more, it has also negative influence on the environment, namely it reduces biodiversity, pollute water and, what is curious, not in all cases the use of biofuels leads to the reduction of CO2 emission.

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