Achieving credible ILUC mitigation in EU biofuel policy

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This presentation addresses the sustainability challenge of indirect land use change (ILUC). Ecofys together with WWF and EPFL have developed a certification module to demonstrate and claim biofuels with a low risk of indirect land use change. Daan Peters, Senior Consultant Bioenergy at Ecofys, presented the methodology and possible policy implications at the Biofuels International Conference 2013 in Antwerp.

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Achieving credible ILUC mitigation in EU biofuel policy

  1. 1. Daan Peters - Biofuels International Conference 11/09/2013 Achieving credible ILUC mitigation in EU biofuel policy
  2. 2. © ECOFYS | | Ecofys • Founded in 1984 as spin-off from University Utrecht • Consulting in renewable energy, energy efficiency, climate change • 200 employees, offices in Utrecht, Brussels, Berlin, Cologne, London, Beijing and Portland Worked on ILUC since 2008: Mitigation: Low Indirect Impact Biofuels Quantification: 2013-2015 ILUC quantification project for the EC Policy: advising wide range of clients 2013 Daan Peters
  3. 3. © ECOFYS | | Presentation content # What are ILUC-free biofuels # Policy support for ILUC-free biofuels # Proving that biofuels are ILUC-free # How certification works in practice 2013 Daan Peters3
  4. 4. © ECOFYS | |2013 Daan Peters4 • Biofuels depend on public endorsement • Sustainability must be guaranteed including ILUC • ILUC-free biofuels are: Produced additionally without displacing current agricultural production or produced from wastes or residues without displacing current non-bioenergy uses of these materials We need ILUC-free biofuels
  5. 5. © ECOFYS | |2013 Daan Peters5 Now (short term solution) Future (long term solution) 2 Expand the use of ILUC-free biofuels Only solution which individual farmers can influence 1 Prevent direct LUC Worldwide and for all land using sectors ILUC mitigation strategies 3 Limit the use of high ILUC risk biofuels ‘waterbed effect’ if not combined with 2
  6. 6. © ECOFYS | |2013 Daan Peters6 1. Unused or abandoned lands 2. Yield increasing above Business As Usual yield development 3. Wastes/residues with limited existing non-bioenergy uses 4. Sustainable intensification: integrating biofuel crops with existing production (sugarcane and cattle) 5. Intensification: biofuel crops on fallow land as part of crop rotation 6. Aquatic biomass Options to produce ILUC-free biofuels
  7. 7. © ECOFYS | | How to stimulate ILUC-free biofuels • Cap on conventional biofuels is one size fits all • Can be made smarter by enabling certified ILUC-free conventional biofuels to be supplied beyond the cap • ILUC-factors: certified ILUC-free conventional biofuels should get a factor of zero • Subtarget for certified low ILUC conventional biofuels 2013 Daan Peters7
  8. 8. © ECOFYS | |2013 Daan Peters8 Proving that biofuels are ILUC free • Low Indirect Impact Biofuels (LIIB) certification module • Developed by WWF, Ecofys and EPFL • Enables farmers to get certified for ILUC-free biomass production • Add-on to existing certification schemes (e.g. ‘RSB LIIB’, ‘ISCC EU LIIB’) LIIB is the only available module to certify low ILUC biofuels, first voluntary schemes interested in using it.
  9. 9. © ECOFYS | | Farmer level vs. regional level • LIIB certifies ILUC free biofuels at farm level • Regional level approach (e.g. land zoning) would prevent direct land use change but not indirect land use change • Stringent environmental rules prevent direct LUC but not indirect LUC LIIB enables individual farmers to say ‘my biofuel crop production does not cause ILUC’ 2013 Daan Peters9
  10. 10. © ECOFYS | | LIIB is reaching maturity • Version 0 is published and tested by independent auditors • Tests in the EU ongoing, commissioned by German government • Version 1 expected in 2014 • LIIB is credible and ready, can be used • Current version enables certification of low ILUC biomass (1) on unused land, (2) through yield increase, (3) from sugarcane-cattle integration, and (4) waste and residues 2013 Daan Peters10
  11. 11. © ECOFYS | |2013 Daan Peters11 I. Cultivation on unused land • ILUC free because no existing agricultural production is displaced • LIIB methodology can be used for any crop How it works: 1. Farmer submits project application and must demonstrate that land is unused during 3 previous years; 2. Can use Responsible Cultivation Area (RCA) methodology for this
  12. 12. © ECOFYS | |2013 Daan Peters12 RCA methodology to identify unused land 1. Site Pre-Selection Identify promising areas 2. Desk-Based Site Assessment Evaluate suitability based on existing data Define information needs field work 3. On-Site Assessment Ground Truth Earlier Findings Fill in Knowledge Gaps HCV Carbon stocks Land rights Agricultural Suitability Sustainability Availability/Displacement Agricultural Suitability Sustainability Availability/Displacement 4. Evaluation Evaluate whether site qualifies as RCA Agricultural Suitability Sustainability Availability/Displacement Displacement effects Suitability HCV Carbon stocks Land rights Displacement effects Suitability HCV Carbon stocks Land rights Displacement effects Suitability HCV Carbon stocks Land rights Displacement effects Suitability Pilots in Romania, Brazil, Indonesia and Mozambique
  13. 13. © ECOFYS | |2013 Daan Peters13 II. Yield increase • Additional yield increase above Business as Usual yield development is ILUC-free • LIIB methodology can be applied to any crop • EU rapeseed yields have increased but still have further growth potential How it works: 1. Farmer submits project application to scheme owner 2. Farmer demonstrates measures likely to achieve yield increase at least >20% than baseline
  14. 14. © ECOFYS | | Measuring quantity of LIIB biofuels from yield increase (1/2) Baseline: 1. Determine baseline yield for the current year a) Average of last 5 yields on site or: b) Expected current year yield of similar producers 2. Determine average annual yield growth for last 10 years for similar producers nearby 3. Set baseline Measuring LIIB quantity vs. baseline: measuring actual yields of the project. All biomass above the baseline is eligible for LIIB certification. 201314 Daan Peters
  15. 15. © ECOFYS | | Measuring quantity of LIIB biofuels from yield increase (2/2) 201315 Daan Peters 1a is the current year yield of the LIIB applicant farmer based on the average yield during the last 5 years 1b is the expected current year yield of farmers of the same crop in the same region Red dotted line is yield trend line of the same crop in the same region in previous 10 years
  16. 16. © ECOFYS | |2013 Daan Peters16 III. Sugar cane-cattle integration • ILUC free because no existing agricultural production is displaced • Integration can be used for any crop but currently developed for sugarcane-cattle How it works: 1. Two cows per hectare instead of one, freeing up land for sugarcane while feeding second cow with bagasse; 2. Quantity of ethanol that can be LIIB certified to be calculated with calculation sheet developed by the University of Sao Paulo; Tested in Brazil with Conservation International
  17. 17. © ECOFYS | |2013 Daan Peters17 IV. Wastes & residues Low ILUC if sufficient quantity is not yet used for non-bioenergy purposes How it works: • Feedstock must be listed on a positive list; • Feedstock can be placed on the positive list if a surplus quantity exist in excess of its current uses
  18. 18. © ECOFYS | |2013 Daan Peters18 Low ILUC residue study for DE, NL and DK • Cereal straw, woody residues, corn cob, UCO: 60Mtoe EU biofuel production potential • Maximum harvest rate to protect soil quality
  19. 19. © ECOFYS | | LIBB certification is cost effective • Investment costs should be paid back by additional production, barriers non-economic • Small additional certification cost because part of a more general sustainability certification 201319 Daan Peters
  20. 20. © ECOFYS | |18/09/2013 Name20 Contact details Daan Peters Senior Consultant Bioenergy +31 (0)30 662 37 10 d.peters@ecofys.com

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