In a report presented to the European Parliament, the body, which also advises the Dutch government, was critical of the European Commission which presented plans in January setting targets for EU member states.

Under the plans, the use of renewable energies like biomass, wind and solar power will rise to 20 percent of all energy forms. Biofuels will also have to make up 10 percent of fuels used for transport.

"Since existing techniques for biofuels are based on food crops such as grain, maize, sugar beet and palm oil, the EU biofuel target of 10 percent will lead to an increase in food prices," the agency said.

It stressed that food importing countries, like many in Africa, would be hit.

The organisation also warned that the production of biofuels in Europe requires more land and could threaten biodiversity in the 27-nation bloc.

To combat biodiversity loss, more efficient agricultural production techniques can be used with artificial fertiliser but some of the resultant crops could also produce greenhouse gases themselves.

"Therefore the EU target to halt biodiversity loss can collide with the greenhouse gas emission reduction targets," the agency said.

They added that biofuels "are not always the best option from an ecological point of view," advising the EU to look towards other technologies for sustainable transport like hydrogen-powered cars and electric vehicles.

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