The House of Commons Environmental Audit Committee has published a damning report on the Government's biofuels strategy.
The committee was highly critical of both the Government and the EU, saying their neglect of more effective policies to reduce emissions in favour of biofuels was "misguided".
The committee said that while biofuels can reduce greenhouse gas emissions from road transport, most first-generation biofuels have had a detrimental impact on the environment.
The committee's report said: "It will take considerable courage for the Government and EU to admit that the current policy arrangements for biofuels are inappropriate.
"The realignments required will be a test of the Government's commitment to moving the UK towards a sustainable low carbon economy."