Biodiesel is a renewable energy source made mainly from vegetable oils and animal fats that is expected to grow globally as a substitute for fossil fuels in the transport sector. The potential of biodiesel lies in the fact that it can significantly reduce CO2 emissions compared to conventional fuels. On the other hand, biodiesel is associated with a number of negative environmental impacts: deforestation and drainage of peatlands to make way for crop cultivation; loss of biodiversity as a result of land use change; the high water footprint of biodiesel can lead to water scarcity in regions with low water availability; and eutrophication and acidification as a result of the use of fertilisers to grow oil crops and the associated emissions of acid gases and nutrients to air and water.
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