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World Biofuels Markets Brazil - 2011 BIOFUELS CERTIFICATION: LESSONS LEARNED AND FUTURE DEVELOPMENTS São Paulo, September 29th, 2011 Luiz Fernando do Amaral Sustainability Manager
EU DIRECTIVE Low CVP Fuels MULTISTAKEHOLDER INITIATIVES NATIONAL INITIATIVES G8+5 INTERNATIONAL BODIES’ INITIATIVES Equator Principles PC 248 Scorecard Green Energy Prepared by UNICA. VERSION 5 (August 2010 ) GLOBAL NATIONAL SUSTAINABILITY INITIATIVES FOR BIOFUELS: A “UNIVERSE” IN CONSTANT EXPANSION SUSTAINABLE BIOFUELS REGIONAL INITIATIVES Green Ethanol Sugarcane Zoning Substa-CBD EthaSTAR CRAMER Cramer Commission LCFS Low Carbon Fuel Standard Task 39 Liquid Biofuels from Biomass Stockholm Environment Institute SEI RTRS Roundtable on Responsible Soy RSPO Roundtable on Sustainable Palm Oil B onsucro Better Sugarcane Initiative PBCB Brazilian Biofuels Certification Program IB Sistema de Verificação. da Atividade Agropecuária CEN European Committee for Standardization Renewable Fuel Standard RFS ISCC Biofuel Quota Law- Ordinance for sustainability requirements GBEP Global Bioenergy Partnership RSB Round Table on Sustainable Biofuels Rainforest Rainforest Alliance Sugarcane Discussion Group SDG BEFSCI Bioenergy and Food Security Criteria and Indicators VSE Verified Sustainable Ethanol FAO OECD IDB IFC IEA UNEP ISO National Commitment National Commitment for the Improvement of Labor Conditions in Sugarcane CSBP Council on Sustainable Biomass Production CBD GMP manual Sugarcane Good Management Practices Manual BNS Biomass Nippon Strategy
An international multi-stakeholder certification of best sustainability practices Some Bonsucro members Bonsucro is an Associate member of ISEAL Alliance (a certification of certifications) UNICA is a member of Bonsucro and sits on the board of directors
EU RED is an important driver... ... but it is not enough to guarantee success of a certification initiative. ... It would still represent only half of the current Brazilian production More important: let us not forget about sugar! (situation is similar to soy, palm, etc...) Drivers If Brazil was to supply 100% of the maximum potential ethanol consumption of the EU by 2020 ... Example: an extreme and theoretical scenario.
What model to guarantee the success (supply and demand) of the certification schemes?
Green coffee percentage of production and world trade (2009 ) Forestry products percentage of global managed forested area (2009-10) production Lessons learned % Certified % Non-certified Elaboration UNICA. Source: IISD, “The State of Sustainbility Initiatives Review 2010” Palm oil supply and sales of RSPO-certified palm oil
If demand does not follow supply: huge risk for the long term viability of the “certification business”.
Differentiation of commodities or commoditization of sustainability?
Number of producers Sustainability level Certification initiatives IN OUT Current certification models for agricultural commodities
Number of producers Sustainability level GOLD certification What if ? … BRONZE certification SILVER certification IN IN OUT IN Obviously, there will always be a limited number of “gold medal champions ” achieving higher levels of requirements and only those would be producing “differentiated commodities” .
Characteristics of the production and distribution chain are fundamental on the strategy adopted by a certification scheme and its success. Different agricultural chains also demand different business models… AMARAL (2010). “Certification: differentiation of commodities or commoditization of sustainability?”. Agroanalysis, Dec. 2010.