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Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade
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Initiatives Regarding Sustainability of Biofuels in Europe and their Potencial Impacts on Trade

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Presentation of Martin Junginger for the "2nd Workshop on the Impact of New Technologies on the Sustainability of the Sugarcane/Bioethanol Production Cycle" …

Presentation of Martin Junginger for the "2nd Workshop on the Impact of New Technologies on the Sustainability of the Sugarcane/Bioethanol Production Cycle"

Apresentação de Martin Junginger realizada no "2nd Workshop on the Impact of New Technologies on the Sustainability of the Sugarcane/Bioethanol Production Cycle "

Date / Data : Novr 11th - 12th 2009/
11 e 12 de novembro de 2009
Place / Local: CTBE, Campinas, Brazil
Event Website / Website do evento: http://www.bioetanol.org.br/workshop5

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  • 1. Initiatives regarding sustainabilityof biofuels in Europe and their potential impacts on trade Martin Junginger, Copernicus Institute, Utrecht University (Netherlands) & IEA Bioenergy Task 40 With contributions from Jinke van Dam and Andre Faaij 2nd workshop on the impact of new technologies on the sustainability of the sugarcane / bioethanol production cycle Campinas, Brazil, 11 November 2009Copernicus InstituteSustainable Development and Innovation Management
  • 2. Presentation overview1.  Background: the need for sustainability criteria and certification of (liquid) biofuels2.  Comparison of current certification systems3.  Barriers and boundary conditions of certification systems for biomass, impact on trade & market perspectives4.  What research agenda is needed for the future?Copernicus InstituteSustainable Development and Innovation Management
  • 3. Current bioenergy tradeAnnual int. traded volumes of ethanol, biodiesel and woodpellets > 4 million tonnes in 2009 and increasing rapidlyCopernicus InstituteSustainable Development and Innovation Management
  • 4. A future vision on global bioenergy…Copernicus Institute [GIRACT/Faaij, 2008]Sustainable Development and Innovation Management
  • 5. Brazilian ethanol trade 1970-2009 Data for 2009 is estimatedCopernicus Institute [Walter et al. 2009, T40 CR]Sustainable Development and Innovation Management
  • 6. Why to guarantee the sustainability of biofuels? •  Strong increase in production and trade •  Criticism in the last years: “GHG balances not OK” “Endless subsidies needed”. “Increases food prices” “Contributes to deforestation”Copernicus InstituteSustainable Development and Innovation Management
  • 7. How can sustainability of biofuels be guaranteed? Various approaches are possible: Voluntary certification (Combined Regula- with) policy tions systems * National Market NGOs Government parties InternationalCopernicus InstituteSustainable Development and Innovation Management
  • 8. Key characteristics certification systems (1): Sustainability requirements translated into: “The GHG balance of the production chain and use of Principles: biomass is positive” Criteria: “There is a net GHG emission reduction over the whole biomass chain. This reduction is calculated with as reference system fossil fuels”. Indicators: “The GHG emission reduction is at least 30% for biofuels”. Verifiers: Calculation results based on defined GHG methodologyCopernicus InstituteSustainable Development and Innovation Management
  • 9. Key characteristics certification systems (2) Three options traceability trade chains: •  Track and trace The certified product is segregated from other products during processing and transport. Its origin can be traced from the end to the start of the value chain. •  Mass Balance The certified product can be mixed with other, non-certified products. The certificate indicates the ratio of the sustainable product based on mass balance •  Book and Claim The product traded is completely separate from the certificate. A certain amount of certified produce can be booked and sold to the market. The buyer can claim sustainability independently of the final product received.Copernicus InstituteSustainable Development and Innovation Management
  • 10. Summary regulation European Commission (1): Derived from the Provisional edition of the text adopted by the Parliament on 17-12-2008:Article Criterion17.2 Full-chain GHG emission reduction >35% (increasing over time)17.3 Exclusion of lands with high biodiversity value17.4 Exclusion of lands with high carbon stock that have recently been converted into e.g. cropland17.5 Exclusion of peat land unless proven that drainage of previously un drained soil is not involved17.6 Condition of good agricultural practice (EU)17.7 Obligation to the Commission to report on soil, water and air impacts and social impacts in regions that are a significant source of feedstockCopernicus InstituteSustainable Development and Innovation Management
  • 11. European Commission and Meta-standard Approach (2): •  European Commission (and also Netherlands, others) will follow meta-standard approach •  Benchmarking of systems that meet requirements Regulation European Commission Forestry Agricultural Bioenergy systems systems systems RTRS RSPO NTA-8080 FSC PEFC BSI ICSSCopernicus InstituteSustainable Development and Innovation Management Etc.
  • 12. THUS….. •  Wide range of ongoing initiatives Proliferation of Initiative A B Schemes and Differences in scope F C Initiative D Initiative E Criteria, Organizational structure indicators, methodologies Criteria, indicators, Organizational structure methodologies Every scheme is developing principles, criteria… and organizational structure…Copernicus InstituteSustainable Development and Innovation Management
  • 13. overview and comparison of sustainability certification schemes (1) Preliminary results: 59 initiatives (regulation + systems) included •  All relevant for (some) sustainability issues and/or •  Various parts of the bioenergy value chain * Substantially more forestry certification systems existCopernicus InstituteSustainable Development and Innovation Management
  • 14. Bioenergy initiatives on government level on different continents.Notes:Initiatives to make agriculture / forestry in general more sustainable not included in figure (e.g. sugar cane production Brazil) Copernicus Institute Source: van Dam, Faaij, Junginger, forthcoming Sustainable Development and Innovation Management
  • 15. Some of the Principles included in initiatives: Initiative Human and Biodiversity Soil carbon labour rights conservation European Commission* - X X IDB X X - GBEP X X X BSI X X - FSC X X - Renewable Fuel Standard - - - NTA-8080 X X X SWAN label X X - ISCC X X - SEKAB X X - CO2 star label - - - Greenergy X X X Copernicus Institute Sustainable Development and Innovation Management
  • 16. Proposals GHG reduction requirements:Initiative ProposalEuropean Commission* 35% GHG reduction (to 60% over time)RSPO In preparationBetter Sugarcane Initiative < 0.4 t CO2 / t sugarRSB Significantly reduce GHG emissionsRenewable Fuel Standard 20% GHG reduction renewable fuelsLCFS California 10% GHG reduction in 2020 compared to baselineSEKAB label 85% GHG reductionCO2 label 60% GHG reduction biodiesel rapeseedSWAN label 1/3 volume fuel gives < 50 g CO2eq/MJ fuel Proposals Netherlands, Germany and UKCopernicus Institute for biofuels in line with ECSustainable Development and Innovation Management
  • 17. Measuring the indicators: Initiatives in development GHG methodologies for bioenergy in Europe (as of December 2008)Initiative Biomass included Allocation matters ILUC LUC Calculated N2O Default values emissionsEC Biofuels and By energy content ILUC penalty under Formula soil (JEC 2007) in EU, Conservative bioliquids for regulation discussion carbon / default IPCC outside EUUK-RTFO Biofuels Subtraction is 1st Conversion forest Calculated, IPCC approach Conservative choice only monitoringGermany Biofuels, Bioenergy Allocation by In discussion, risk Formula soil Included, IPCC Conservative for heating and energy content adder approach? carbon, IPCC when data limited power to be (LHV) includedNetherlands Two tools: a) Allocation by Methodology Methodology based Included, IPCC Conservative / Biofuels and b) Bio- energy content proposed on IPCC when data limited typical / best energy for heating (monitoring) practice and powerWallonia (Belgium) Main biomass Not included Not included Not included Not included Provided by sources for Wallonia bioenergy for power governmentElectrabel / Bioenergy for Not included Not included Not included Not included Some dataLaborelec heating and power providedSwan label (Nordic Biofuels Subtraction is 1st Not mentioned No negative Included Yes. Not forcountries) choice balance is required productionRSB (based on CopernicusBiofuels Institute Guidelines are ILUC to be Based on IPCC To be addressed Criteria fordraft standard under development minimized. Under Sustainable Development and Innovation Management methodology and acceptable default2008) discussion. values values under development
  • 18. Proposals Chain of Custody: Initiative Book and Track and Mass balance Claim trace European Commission* X RSPO X X X FSC X X PEFC X X SEKAB label X ICSS X X X NTA-8080 Netherlands X X XCopernicus InstituteSustainable Development and Innovation Management
  • 19. overview and comparison of sustainability certification schemes (2)•  28 initiatives cover the sustainability of biofuels•  From which 17 are developing principles * In some cases both development of principles and regulation in processCopernicus InstituteSustainable Development and Innovation Management
  • 20. overview and comparison of sustainability certification schemes (3) Initiatives in USA (preliminary) Principles Biofuels Biodiesel Bioethanol Renewable Fuel Standard X LCFS California X Regulation State X Massachusetts Sustainable Biodiesel X X Alliance Council on Sustainable Planned X* Biomass Production National Biodiesel Board X x * Focus on cellulosic bioenergy facilitiesCopernicus InstituteSustainable Development and Innovation Management
  • 21. overview and comparison of sustainability certification schemes (3) Initiatives in Europe Principles Biofuels Biodiesel Bioethanol European Commission X X CEN TC 383 X X Netherlands – governm. X X Germany – government X X UK-RTFO – governm. X X Switzerland – governm. X SEKAB - label X X Greenergy – label X X (resource) SWAN label X X (resource) CO2 star label X CEO report (NGO) XCopernicus InstituteSustainable Development and Innovation Management
  • 22. Example initiatives Greenergy and SEKAB label (1): Greenergy: •  Scope: sugar cane production for bioethanol •  Coverage: biomass from Brazil, to be used in UK (by company Greenergy) •  Intention: adaptation for the RTFO standard (will follow principles Better Sugarcane Initiative) SEKAB: •  Scope: ethanol from sugar cane in Brazil •  Coverage: biomass from Brazil, to be used in Sweden •  Intention: developed for Swedish market Note: Principles for sugar cane are also in development by the Better Sugar Cane Initiative!Copernicus InstituteSustainable Development and Innovation Management
  • 23. Example initiatives Greenergy and SEKAB label (2): PRINCIPLES GREENERGY LABEL 1.  Carbon Conservation 2.  Biodiversity Conservation Includes: compliance national laws and regulations + various good 3.  Soil Conservation agricultural practices (soil management plan) 4.  Sustainable Water Use 5.  Air Quality 6.  Workers Rights and Working Relationships 7.  Land Rights and Community Relations Only in SEKAB label PRINCIPLES SEKAB LABEL 1.  GHG emissions: At least 85% GHG reduction compared with petrol 2.  Efficiency harvest: At least 30% mechanization of the harvest now, plus a planned increase in the decree of mechanization to 100% 3.  Biodiversity: Zero tolerance for felling of rain forest 4.  Workers rights: Zero tolerance for child labor 5.  Rights and safety measures for all employees 6.  Environment: Ecological consideration in accordance with UNICA environmental initiative 7.  Continuous monitoring that the criteria are being met Soil includes: implementation plan for soil conservation ing! In general: criteria Greenergy label more specified h opp fo rs h riskCopernicus Institute HigSustainable Development and Innovation Management
  • 24. Potential barriers and boundary conditions •  Sense of urgency – international production & trade is growing fast •  But, with too many initiatives on various levels, a danger of fragmentation and incompatible certification systems exists – prevent proliferation of standards •  Stakeholder involvement in producing countries often neglected, especially smallholdersCopernicus InstituteSustainable Development and Innovation Management
  • 25. Potential barriers and boundary conditions •  Compliance with WTO rules and international treaties •  Some sustainability criteria may actually conflict with each other •  Additional costs of meeting the sustainability criteria (and cost of certification) will have to be evaluated •  Inclusion of not enough/soft criteria will result in “greenwashing” (fear of NGO’s) •  Inclusion of too many criteria will may in fact create new market barriers (fear of industry and producers) •  Monitoring of compliance crucial, otherwise the “cheaters” may win (fear of both NGO’s and industry)Copernicus InstituteSustainable Development and Innovation Management
  • 26. Mandatory certification not the only option Several policy tools/strategies to pursue the sustainability: •  Certification: Only biomass that is certified according to criteria derived from sustainability principles is allowed to be imported •  Product-Land Combinations: Only biomass from regions that comply with sustainability principles allowed for import Government decides which products/regions are eligible for government support •  Regionalization: In this strategy, Europe utilizes its own biomass resources before importing biomass from developing countries •  Self-regulation: code-of practice defined by parties involved in production and tradeCopernicus InstituteSustainable Development and Innovation Management
  • 27. Fundamentals of the criteria (I) •  It is a process; developing, deploying and optimising the required procedures takes time –  Deployment of monitoring –  Increasing share in total market –  Spillover to conventional agriculture •  Dynamics (land-use, economic & technological development, infrastructure build-up) change over time. –  Increasing scale of production –  Improvement in agriculture and livestock (!) –  Improving quality of governance and oversight (!)Copernicus InstituteSustainable Development and Innovation Management
  • 28. Fundamentals of the criteria (II)•  Merging the field level to macro-level; changes in land-use affect about all other impacts –  Scenario (thus strategy/policy-) dependent. –  Good field level performance may be overruled by macro-developments –  Water and biodiversity ‘somewhere in between’•  From safeguard to stabilisation to positive side effects (e.g. Environmental Goods & Services and contributing to development): –  Soil preservation & restoration –  Opportunities for biodiverstiy –  Water retention functionsCopernicus InstituteSustainable Development and Innovation Management
  • 29. Concluding…Good insight in sustainability performance of bioenergy chains is highly needed to guide development pathways. This requires: Unification of methodologies. Harmonization of systems. Development of methodologies, indicators and related performance norms Development of local and regional databases Sound methodology to weigh individual criteria Global convergence, dialogue and deployment priority (leadership needed).Copernicus InstituteSustainable Development and Innovation Management
  • 30. Barriers and Opportunities for International Bioenergy / Ethanol trade Martin Junginger & Andre Faaij (UU), Simonetta Zarrilli (UNCTAD), Fatin Ali Mohamed (UNIDO),Peter-Paul Schouwenberg (Nidera) (task leaders) and all T40 members Copernicus Institute Sustainable Development and Innovation Management
  • 31. Rationale: bioenergy trade is growing rapidly – many opportunities and barriers arising all the time Aim: get an up-to-date overview of what market actorscurrently perceive as major opportunities and trade barriers for the current and future development international bioenergy trade for three internationally-traded bioenergy commodities: 1) bioethanol 2) biodiesel 3) wood pellets. Method: Online questionnaire at http://task40.questionpro.com Approach stakeholder through Task 40 & UNIDO network Copernicus Institute Sustainable Development and Innovation Management
  • 32. ResultsQuestionnaire: 105 fully completed + 87 partially completed questionnaires Argentina: 9 & Brazil 4 responsesCopernicus InstituteSustainable Development and Innovation Management
  • 33. ResultsCopernicus InstituteSustainable Development and Innovation Management
  • 34. Overview of barriers and opportunities for ethanol trade Major opportunities (Major) barriersCopernicus InstituteSustainable Development and Innovation Management
  • 35. Some comments from the industry on sustainability criteria for liquid biofuels•  Argentinian respondent: “..must be established by working jointly with the Emerging Market countries. Until now, most of it is being imposed on them…”•  Australian respondent: “Complexity. Sustainability Standards required of Biofuels not required of other trade commodities with environmental, social and GHG impacts. Continuing future uncertainty due to ongoing review provisions of EU Renewable Energy Directive. Unclear which Standards, Certification and Chain of Custody procedures will be applied. Will be used as non- tariff barriers.”•  Swedish respondent: Depending on how the criteria is constructed there is a risk that the criteria is used to protect domestic markets. We prefer definition of no-go areas and the same rules both for food and bioenergy productionCopernicus InstituteSustainable Development and Innovation Management
  • 36. Some comments from the industry on sustainability criteria for liquid biofuels•  “sustainability criteria should be designed in a way that is workable for operators, especially considering that biofuels are commodities traded on a world-wide basis… efforts should be focused on drawing clear rules for the chain of custody and balances reporting requirements for individual operators (producers, traders, end-users…)”•  “Discriminating against specific crops/producing regions: this would strongly contradict WTO principles and would not deliver the expected outcome of sustainability criteria, which is to protect biodiversity”•  “… applying sustainability criteria to biofuels or bioenergy only can be considered as a first step. However, on a longer-term perspective, the certification of all biomass regardless of the final use should be considered… Copernicus Institute Sustainable Development and Innovation Management
  • 37. Our wish list (I): improve key insights and data: •  Embed technological learning of bioenergy systems properly in models (production, supply and conversion systems). [Bottom-up] •  Learning of agricultural and livestock management (in relation to prices, settings and policies). [Bottom-up]Copernicus InstituteSustainable Development and Innovation Management
  • 38. Our wish list (II): Biophysical models ~ environment: •  Water [regional level; bottom-up] •  Biodiversity (resolve methodological issues; management options and reference situations). •  Proper incorporation of residues and wastes. •  Marginal and degraded lands [data!!!]Copernicus InstituteSustainable Development and Innovation Management
  • 39. Our wish list (III): modeling frameworks: •  Integrate biophysical and macro-economic models (partly tackled: OECD, FAO, UU/LEI- IMAGE/GTAP, IFPRI-Stanford). •  2nd (+) generation options •  Biomaterials •  Non-agricultural lands (forest, marginal, degraded, etc.) •  Feedbacks prices (and policies) on learning and intensification. •  Backed by concrete examples; model verification.Copernicus InstituteSustainable Development and Innovation Management
  • 40. Argentina; example Different scenario’s full impact analysis for land-use and agricultural management Compares soybean (biodiesel) to switchgrass (pellets) Focus on more marginal area in one province (La Pampa) Follows main principles of Cramer Van Dam et al., 2009 frameworkCopernicus InstituteSustainable Development and Innovation Management
  • 41. Net GHG balance in kg CO2 eq / tdm per year from Switchgrass cultivation for bioenergy for different scenario’s Copernicus Institute Van Dam et al., 2009 Sustainable Development and Innovation Management
  • 42. Soil erosion rates in t soil/ ha/yr for Switchgrass and SoybeanCopernicus Institute Van Dam et al., 2009Sustainable Development and Innovation Management
  • 43. Model framework Baseline situation Split model specialty/bulk Projections of chemicals final energy demand Biomass blending Bottom-up Top-down shares modeling Economic (Excel based) Feedstock types modeling Technology (LEITAP) Productivity factors database Cost and supply of biomass Bottom-up results Top-down resultsCopernicus InstituteSustainable Development and Innovation Management
  • 44. Thank you for your attention!•  Much of this material will become available at: www.bioenergytrade.orgQuestions / further work:H.M.Junginger@uu.nlCopernicus InstituteSustainable Development and Innovation Management

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