The report has been issued by UN-Energy, an inter-agency body established to coordinate the world body''s work in the realm of energy and was funded by the UN Food and Agriculture Organisation (FAO).

The report also stressed the importance and desirability of using bio-fuels in promoting rural development. It points out that nearly one billion people do not have access to electricity at present which shows that demand for energy would sharply rise as the people are lifted out of poverty.

In a first of its kind study to examine the use of bio-energy, the report examines the issue of alternate energy through the prism of nine issues, including poverty, health, food security, agriculture, climate change, finance and trade.

Launching the report on Tuesday, Gustavo Best, vice chair of UN-Energy, said, "We tried to create the framework to discuss it really all together because they need to be seen together."

The report warned that "unless new policies are enacted to protect threatened lands, secure socially acceptable land use, and steer bio-energy development in a sustainable direction overall, the environmental and social damage could in some cases outweigh the benefits".