2
IFAD’s programme priorities and Bioenergy
Accra, Ghana, 18 October 2010
Dr. Rodney D. Cooke
Director, Policy and Technic...
IFAD at work
From 1979 to 2009:
• 829 projects in 115 countries
• Supported 300 million rural poor
• Total IFAD disburseme...
Smallholder farming
500 million smallholder farms worldwide
supporting around 2 billion people. They:
Farm 80% of the farm...
Opportunities and Risks for Agriculture
RISKS
– Environmental degradation - the need
to make agriculture both productive
a...
The role of smallholders in closing the divide
• 500 million smallholder farms worldwide
The challenge: to transform
small...
I
• Integrate livestock toIntegrate livestock to
match rising demandmatch rising demand
• Develop privateDevelop private
A...
Interventions in the agricultural sector: Energy
– An estimated 2 billion people lack access to modern
energy services. Th...
Nexus between poverty and energy
• Most poor people use biomass for energy.
• Environmentally unsustainable.
Why are biofu...
Why are biofuels important for the rural poor?
• Almost 2.5 billion people in developing countries earn their
livelihoods ...
Why are biofuels important for the rural poor?
• Expand the traditional agricultural basket
(food, feed, fibre), by includ...
IFAD’s guidelines for in biofuel development
• IFAD’s Strategic Framework (2007-2010), recognizes the importance of
biofue...
Why is IFAD focussing on research?
• Existing knowledge on 1st
generation technology, but these are
food crops.
• Capital ...
Facility for non-food biofuel crop development
Objectives
1. coordinated research in a time-bound action plan along the
en...
Is low expenditure on agriculture justified?
• A 1% p.a. increase in agriculture growth, on average leads to a 2.7%
increa...
Biofuels and water
• Intensive cultivation of monoculture cash crops causes
environmental externalities associated with:
–...
Conclusion
• Biofuels should be treated like any other cash crop.
• Impacts could be minimized by preferring crop varietie...
Thank you!
Biofuels and food security
• Available analysis indicated that in general bio-fuels are not a primary
cause of hunger, nor...
IFAD’s Development Objectives
• Strategic objectives: poor rural men and women in developing
countries have better access ...
Principles of Engagement
• Selectivity and focus
– IFAD won’t work outside rural areas; provide relief, GBS.
Social servic...
Principles of Engagement (contd)
• Innovation, learning and upscaling
– IFAD’s role to innovate, and through experience pr...
Problematique: not enough lights in Africa
Earth lights on
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  • 2008 Replenishment paper: “Develop a corporate strategy on climate change, to be presented to the Executive Board for approval by April 2010.”
    Following ideas developed through internal Policy Reference Group involving all divisions.
  • Note now talking about climate deal, not necc at Copenhagen
    "I have heard representatives of both Europe and the US say that the target that China has tabled can be improved upon; I have heard representatives from Europe and China say that the target tabled by the US can be improved upon ... and I have heard least developed states say that nobody's targets are good enough at the moment," de Boer said.
    UNEP/Stern research estimates that in order to have a reasonable chance, or 50 per cent probability, of avoiding a rise in global temperature of more than 2˚C, annual global emissions of greenhouse gases in 2020 need to be no more than 44 billion tonnes of carbon-dioxide-equivalent.
    The analysis shows that the gap between this target and the most ambitious cuts proposed by countries over the past months and weeks is about 2 billion tonnes of carbon-dioxide-equivalent, with a range of 1 to 5 billion tonnes. If the overall target 44 billion tonnes is exceeded in 2020, it is likely to be more difficult and costly to reach the goal as much stronger action would be required in decades afterwards.
    FINANCE
    Developing nations have said the rich should devote far more money to helping them combat climate change and adapt to shifts such as more droughts, floods and rising seas. African nations, for instance, say $267 billion a year will be needed from 2020.
    The European Union has said that developing nations will need 100 billion euros a year from 2020. About 22-50 billion euros of the total will come from the public purse worldwide and the EU will provide a fair share. Many other developed nations have not made such clear offers.
    The United Nations wants $10 billion a year on the table in Copenhagen to help kick-start a deal. Developed nations have yet to come up with cash.
    OVERSEEING FUNDS
    Delegates are considering various mechanisms to oversee funds and balance the interests of donors and recipients. Developed countries favour some World Bank supervision, and developing nations prefer the U.N. climate secretariat.
    THE KYOTO PROTOCOL
    Many developed nations suggest that the existing Kyoto Protocol, which binds all industrialised nations except the United States to curb emissions by 2012, could be merged with a parallel track trying to agree obligations for all nations. Developing nations say a merger would risk "killing" Kyoto since many of them do not want obligations on the same level as those imposed on developed nations.
    KYOTO
    Other gaps remaining in talks to extend the Kyoto Protocol:
    * A base year against which to compare emissions cuts in 2020; countries have proposed these base years -- 1990, 2000, 2005 and 2006. * Length of the next period of the Kyoto Protocol after the present 2008-2012 period; countries have proposed: 2013-2017; 2013-2020; and 2013-2017 followed by 2018-2022.
    * How to account for forests, which suck carbon from the air; depending on how to include forests, greenhouse gas emissions targets will look completely different.
    * What new gases to include, in addition to the six greenhouse gases currently included in the Kyoto Protocol.
    Whether to increase a levy on carbon markets, to raise funds to pay for adaptation to climate change in developing countries.
    A beacon to guide discussions is the Intergovernmental Panel on Climate Change’s finding that an aggregate emission reduction by industrialised countries of between minus 25% and 40% over 1990 levels would be required by 2020, and that global emissions would need to be reduced by at least 50% by 2050, in order to stave off the worst effects of climate change.
  • Note now talking about climate deal, not necc at Copenhagen
    "I have heard representatives of both Europe and the US say that the target that China has tabled can be improved upon; I have heard representatives from Europe and China say that the target tabled by the US can be improved upon ... and I have heard least developed states say that nobody's targets are good enough at the moment," de Boer said.
    UNEP/Stern research estimates that in order to have a reasonable chance, or 50 per cent probability, of avoiding a rise in global temperature of more than 2˚C, annual global emissions of greenhouse gases in 2020 need to be no more than 44 billion tonnes of carbon-dioxide-equivalent.
    The analysis shows that the gap between this target and the most ambitious cuts proposed by countries over the past months and weeks is about 2 billion tonnes of carbon-dioxide-equivalent, with a range of 1 to 5 billion tonnes. If the overall target 44 billion tonnes is exceeded in 2020, it is likely to be more difficult and costly to reach the goal as much stronger action would be required in decades afterwards.
    FINANCE
    Developing nations have said the rich should devote far more money to helping them combat climate change and adapt to shifts such as more droughts, floods and rising seas. African nations, for instance, say $267 billion a year will be needed from 2020.
    The European Union has said that developing nations will need 100 billion euros a year from 2020. About 22-50 billion euros of the total will come from the public purse worldwide and the EU will provide a fair share. Many other developed nations have not made such clear offers.
    The United Nations wants $10 billion a year on the table in Copenhagen to help kick-start a deal. Developed nations have yet to come up with cash.
    OVERSEEING FUNDS
    Delegates are considering various mechanisms to oversee funds and balance the interests of donors and recipients. Developed countries favour some World Bank supervision, and developing nations prefer the U.N. climate secretariat.
    THE KYOTO PROTOCOL
    Many developed nations suggest that the existing Kyoto Protocol, which binds all industrialised nations except the United States to curb emissions by 2012, could be merged with a parallel track trying to agree obligations for all nations. Developing nations say a merger would risk "killing" Kyoto since many of them do not want obligations on the same level as those imposed on developed nations.
    KYOTO
    Other gaps remaining in talks to extend the Kyoto Protocol:
    * A base year against which to compare emissions cuts in 2020; countries have proposed these base years -- 1990, 2000, 2005 and 2006. * Length of the next period of the Kyoto Protocol after the present 2008-2012 period; countries have proposed: 2013-2017; 2013-2020; and 2013-2017 followed by 2018-2022.
    * How to account for forests, which suck carbon from the air; depending on how to include forests, greenhouse gas emissions targets will look completely different.
    * What new gases to include, in addition to the six greenhouse gases currently included in the Kyoto Protocol.
    Whether to increase a levy on carbon markets, to raise funds to pay for adaptation to climate change in developing countries.
    A beacon to guide discussions is the Intergovernmental Panel on Climate Change’s finding that an aggregate emission reduction by industrialised countries of between minus 25% and 40% over 1990 levels would be required by 2020, and that global emissions would need to be reduced by at least 50% by 2050, in order to stave off the worst effects of climate change.
  • Note now talking about climate deal, not necc at Copenhagen
    "I have heard representatives of both Europe and the US say that the target that China has tabled can be improved upon; I have heard representatives from Europe and China say that the target tabled by the US can be improved upon ... and I have heard least developed states say that nobody's targets are good enough at the moment," de Boer said.
    UNEP/Stern research estimates that in order to have a reasonable chance, or 50 per cent probability, of avoiding a rise in global temperature of more than 2˚C, annual global emissions of greenhouse gases in 2020 need to be no more than 44 billion tonnes of carbon-dioxide-equivalent.
    The analysis shows that the gap between this target and the most ambitious cuts proposed by countries over the past months and weeks is about 2 billion tonnes of carbon-dioxide-equivalent, with a range of 1 to 5 billion tonnes. If the overall target 44 billion tonnes is exceeded in 2020, it is likely to be more difficult and costly to reach the goal as much stronger action would be required in decades afterwards.
    FINANCE
    Developing nations have said the rich should devote far more money to helping them combat climate change and adapt to shifts such as more droughts, floods and rising seas. African nations, for instance, say $267 billion a year will be needed from 2020.
    The European Union has said that developing nations will need 100 billion euros a year from 2020. About 22-50 billion euros of the total will come from the public purse worldwide and the EU will provide a fair share. Many other developed nations have not made such clear offers.
    The United Nations wants $10 billion a year on the table in Copenhagen to help kick-start a deal. Developed nations have yet to come up with cash.
    OVERSEEING FUNDS
    Delegates are considering various mechanisms to oversee funds and balance the interests of donors and recipients. Developed countries favour some World Bank supervision, and developing nations prefer the U.N. climate secretariat.
    THE KYOTO PROTOCOL
    Many developed nations suggest that the existing Kyoto Protocol, which binds all industrialised nations except the United States to curb emissions by 2012, could be merged with a parallel track trying to agree obligations for all nations. Developing nations say a merger would risk "killing" Kyoto since many of them do not want obligations on the same level as those imposed on developed nations.
    KYOTO
    Other gaps remaining in talks to extend the Kyoto Protocol:
    * A base year against which to compare emissions cuts in 2020; countries have proposed these base years -- 1990, 2000, 2005 and 2006. * Length of the next period of the Kyoto Protocol after the present 2008-2012 period; countries have proposed: 2013-2017; 2013-2020; and 2013-2017 followed by 2018-2022.
    * How to account for forests, which suck carbon from the air; depending on how to include forests, greenhouse gas emissions targets will look completely different.
    * What new gases to include, in addition to the six greenhouse gases currently included in the Kyoto Protocol.
    Whether to increase a levy on carbon markets, to raise funds to pay for adaptation to climate change in developing countries.
    A beacon to guide discussions is the Intergovernmental Panel on Climate Change’s finding that an aggregate emission reduction by industrialised countries of between minus 25% and 40% over 1990 levels would be required by 2020, and that global emissions would need to be reduced by at least 50% by 2050, in order to stave off the worst effects of climate change.
  • Note now talking about climate deal, not necc at Copenhagen
    "I have heard representatives of both Europe and the US say that the target that China has tabled can be improved upon; I have heard representatives from Europe and China say that the target tabled by the US can be improved upon ... and I have heard least developed states say that nobody's targets are good enough at the moment," de Boer said.
    UNEP/Stern research estimates that in order to have a reasonable chance, or 50 per cent probability, of avoiding a rise in global temperature of more than 2˚C, annual global emissions of greenhouse gases in 2020 need to be no more than 44 billion tonnes of carbon-dioxide-equivalent.
    The analysis shows that the gap between this target and the most ambitious cuts proposed by countries over the past months and weeks is about 2 billion tonnes of carbon-dioxide-equivalent, with a range of 1 to 5 billion tonnes. If the overall target 44 billion tonnes is exceeded in 2020, it is likely to be more difficult and costly to reach the goal as much stronger action would be required in decades afterwards.
    FINANCE
    Developing nations have said the rich should devote far more money to helping them combat climate change and adapt to shifts such as more droughts, floods and rising seas. African nations, for instance, say $267 billion a year will be needed from 2020.
    The European Union has said that developing nations will need 100 billion euros a year from 2020. About 22-50 billion euros of the total will come from the public purse worldwide and the EU will provide a fair share. Many other developed nations have not made such clear offers.
    The United Nations wants $10 billion a year on the table in Copenhagen to help kick-start a deal. Developed nations have yet to come up with cash.
    OVERSEEING FUNDS
    Delegates are considering various mechanisms to oversee funds and balance the interests of donors and recipients. Developed countries favour some World Bank supervision, and developing nations prefer the U.N. climate secretariat.
    THE KYOTO PROTOCOL
    Many developed nations suggest that the existing Kyoto Protocol, which binds all industrialised nations except the United States to curb emissions by 2012, could be merged with a parallel track trying to agree obligations for all nations. Developing nations say a merger would risk "killing" Kyoto since many of them do not want obligations on the same level as those imposed on developed nations.
    KYOTO
    Other gaps remaining in talks to extend the Kyoto Protocol:
    * A base year against which to compare emissions cuts in 2020; countries have proposed these base years -- 1990, 2000, 2005 and 2006. * Length of the next period of the Kyoto Protocol after the present 2008-2012 period; countries have proposed: 2013-2017; 2013-2020; and 2013-2017 followed by 2018-2022.
    * How to account for forests, which suck carbon from the air; depending on how to include forests, greenhouse gas emissions targets will look completely different.
    * What new gases to include, in addition to the six greenhouse gases currently included in the Kyoto Protocol.
    Whether to increase a levy on carbon markets, to raise funds to pay for adaptation to climate change in developing countries.
    A beacon to guide discussions is the Intergovernmental Panel on Climate Change’s finding that an aggregate emission reduction by industrialised countries of between minus 25% and 40% over 1990 levels would be required by 2020, and that global emissions would need to be reduced by at least 50% by 2050, in order to stave off the worst effects of climate change.
  • Introduction by cooke 18 oct 2010

    1. 1. 2 IFAD’s programme priorities and Bioenergy Accra, Ghana, 18 October 2010 Dr. Rodney D. Cooke Director, Policy and Technical Advisory Division International Fund for Agricultural Development
    2. 2. IFAD at work From 1979 to 2009: • 829 projects in 115 countries • Supported 300 million rural poor • Total IFAD disbursement: over USD 12 billion • USD 670.5 million in 33 new projects in 2009 • USD 850 million forecast for 2010
    3. 3. Smallholder farming 500 million smallholder farms worldwide supporting around 2 billion people. They: Farm 80% of the farmland in Asia and Africa. Produce 80% of the food consumed in the developing world Feed 1/3 of the global population. Women are increasingly the farmers of the developing world, producing between 45% and 80% of household food.
    4. 4. Opportunities and Risks for Agriculture RISKS – Environmental degradation - the need to make agriculture both productive and sustainable – Climate change - the importance of adaptation & mitigation measures – Increasing competition for scarce resources: land & water – Slower growth of agriculture productivity in relation to growth of demand – Food price volatility – Aid fatigue & fiscal crisis – Smallholders pushed aside by corporate farms – Bio-fuels substitute for food 5 OPPORTUNITIES - Increasing demand for agricultural products - Emergence of regional & global value chains - Biotechnology-driven agricultural research changing technology options - New markets for bio-fuels - More resources for agriculture in short term (L’Aquila, GAFSP, EU) - More commitment by governments, e.g. CAADP - Globalised trade & private investment in agriculture - Changing business models - Payment for environmental services more widespread
    5. 5. The role of smallholders in closing the divide • 500 million smallholder farms worldwide The challenge: to transform smallholder agriculture into successful agribusinesses
    6. 6. I • Integrate livestock toIntegrate livestock to match rising demandmatch rising demand • Develop privateDevelop private Agro-processing &Agro-processing & mktgmktg • Cash crops: a roleCash crops: a role for promisingfor promising underutilised cropsunderutilised crops Options for rural smallholders • Improve basic foods andImprove basic foods and staplesstaples
    7. 7. Interventions in the agricultural sector: Energy – An estimated 2 billion people lack access to modern energy services. They rely on traditional biomass sources such as wood, agricultural residues, and animal dung. – Encourage local energy development to meet local energy needs which will reduce deforestation, provide cleaner burning fuel and provide the basis for intensifying agricultural production; – Reduce the GHG emissions by promoting cleaner burning biofuels through smallholders farming following CA practices..
    8. 8. Nexus between poverty and energy • Most poor people use biomass for energy. • Environmentally unsustainable. Why are biofuels important for the rural poor?
    9. 9. Why are biofuels important for the rural poor? • Almost 2.5 billion people in developing countries earn their livelihoods from agriculture. • Of these, 900 million live below the poverty line. • Agriculture directly employs 1.3 billion people. • And, agriculture contributes only around 4% of global GDP. • Small agricultural basket that cannot sustain that many.
    10. 10. Why are biofuels important for the rural poor? • Expand the traditional agricultural basket (food, feed, fibre), by including biofuels. • Selected bio-fuel crops offer this opportunity. • Provided food security, environmental, land and water issues are addressed.
    11. 11. IFAD’s guidelines for in biofuel development • IFAD’s Strategic Framework (2007-2010), recognizes the importance of biofuels as a major market opportunity for the poor. • The Round Table discussion on biofuels in the GC 2008, led to the conclusions that participation in biofuels has to be: – pro-poor, – pro-nature, – pro-livelihoods, – pro-women, – while ensuring food security.
    12. 12. Why is IFAD focussing on research? • Existing knowledge on 1st generation technology, but these are food crops. • Capital investments on 2nd and 3rd generation technology, most of which are not suitable for the poor in developing countries. • More research is needed on non-food biofuel crops to make them competitive.
    13. 13. Facility for non-food biofuel crop development Objectives 1. coordinated research in a time-bound action plan along the entire value chain; 2. finance local energy provision pilot projects to enhance food security; 3. collect and disseminate information, research findings, and successful experiences; 4. facilitate and strengthen R&D networking and knowledge sharing; and 5. mainstream biofuel investment projects in partnership with the private sector.
    14. 14. Is low expenditure on agriculture justified? • A 1% p.a. increase in agriculture growth, on average leads to a 2.7% increase in income of the lowest 3 income deciles in developing countries (WDR 2007) • Agriculture is 2.5 to 3 times more effective in increasing income of the poor than is non-agriculture investment (WDR 2007) • Agriculture growth, as opposed to growth in general, is typically found to be the primary source of poverty reduction (IFPRI, 2007) • Agricultural growth the pre-cursor to overall economic growth: Europe and North America (in the early part of the 20th century), in Japan a little later, and more recently in China, India, and Vietnam
    15. 15. Biofuels and water • Intensive cultivation of monoculture cash crops causes environmental externalities associated with: – Pesticides, fertilizers, high water use (which lead to water pollution and depleted resources). • Small scale farming production has lesser environmental impacts. Why not promote smallholder biofuel crop productionWhy not promote smallholder biofuel crop production using CA techniques?using CA techniques?
    16. 16. Conclusion • Biofuels should be treated like any other cash crop. • Impacts could be minimized by preferring crop varieties and farming techniques which cause low or positive impacts. • A more balanced and a clear view on biofuels needs to be disseminated.
    17. 17. Thank you!
    18. 18. Biofuels and food security • Available analysis indicated that in general bio-fuels are not a primary cause of hunger, nor a direct driver of food insecurity (GEF-STAP Workshop on Liquid Biofuels, 2006). • Bio-energy crops could be a means to alleviate poverty, and to increase food security through income generation. • Food security is not just a problem of production, rather a problem of unequal access within developing countries (FAO 2005). • Supply of energy in rural areas is central to intensification of agriculture. This has become a pressing issue only because someThis has become a pressing issue only because some countries have used food crops for biofuels production.countries have used food crops for biofuels production. Solution: Do not use food crops for bio-fuel production, orSolution: Do not use food crops for bio-fuel production, or promote multiple use crops.promote multiple use crops.
    19. 19. IFAD’s Development Objectives • Strategic objectives: poor rural men and women in developing countries have better access to, and have developed the skills and organization to take advantage of: – Natural resources (land and water); – Improved agricultural technologies and effective production services; – A broad range of financial services; – Transparent and competitive agricultural input and produce markets; – Opportunities for rural off-farm employment and enterprise development; and – Local and national policy and programming processes.
    20. 20. Principles of Engagement • Selectivity and focus – IFAD won’t work outside rural areas; provide relief, GBS. Social services under specific conditions. • Targeting – Poor and vulnerable people: farmers, fishers, pastoralists, landless. Always women, sometimes IP, orphans. Great variation by country, not always absolute poorest. • Empowering poor rural people – Building skills, capacities, confidence; supporting their organizations – local and national.
    21. 21. Principles of Engagement (contd) • Innovation, learning and upscaling – IFAD’s role to innovate, and through experience promote upscaling by governments/donors • Effective partnerships – Local partnerships generally good, more partnerships needed with donors and international organizations • Sustainability – Need to improve sustainability of project impact – key factors achieving impact; local ownership and building skills of target group
    22. 22. Problematique: not enough lights in Africa Earth lights on
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