Our project consists of three work packages (WPs), each of which considers one or more aspects of biofuels policies and how policies should be designed in order to secure a sustainable introduction of biofuels. In WP 1 we will analyze to what extent a rep orting policy and the non-acceptance of non-sustainable biofuels in Norway and EU could avoid that the use of non-sustainable biofuels is increased correspondingly in countries with energy security high on the agenda, and environmental concerns lower on t he agenda. Moreover, WP1 will analyze how biofuels policies more generally should be designed in order to avoid unfortunate indirect effects on land use, and to what extent uncertainty with respect to GHG emissions saved per gallon of biofuels lead to cha nges in the policy mix. WP 2 will analyze how the government of an open economy should design its support program for second-generation biofuel technologies. We will consider whether support should be according to downstream deployment, direct support for R&D, through higher taxes on conventional fossil fuels and/or first generation biofuels. In WP 3 we will analyze the effects of introduction of biofuels on the production of fossil oil. In this WP we will emphasize that oil producers are forward looking and therefore could find it profitable to speed up the extraction of fossil oil because the governments? biofuels support could make lower future prices more likely.