The UK is to slow its adoption of biofuels, Transport Secretary Ruth Kelly has told the House of Commons.
She said that while biofuels had the potential to cut carbon emissions there were "increasing questions" about them.
The uncontrolled expansion of biofuels might actually contribute to higher food prices and see the destruction of rainforests, she said.
Ms Kelly said she agreed with the conclusions of the Gallagher report to "amend not abandon" biofuel policies.
Her statement came on the day the World Bank president, Robert Zoellick, called for reform of biofuel policies in rich countries, urging them to grow more food instead.
A panel of government experts, chaired by Professor Ed Gallagher, head of the Renewable Fuels Agency, looked at the impact of biofuels on land use.
Poverty fears
The report did not go as far as a damning study from the World Bank last week, which blamed biofuels for a 75% rise in food prices.
But it called for biofuels to be introduced more slowly than planned until controls are in place to prevent higher food prices and land being switched from forests or agriculture to growing fuels.
It fears that current policies could see grain prices in the EU rise by 15%, sugar by 7% and oil seed by 50%, while millions more people in other parts of the world could be pushed into poverty.