Charlie Henderson (Climate Futures)-Biofuels Case Study


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GCL Event-Environmental Sustainability in Scotland and Malawi
20th October 2011

Published in: Business, Economy & Finance
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Charlie Henderson (Climate Futures)-Biofuels Case Study

  1. 1. Biofuels in MalawiCharlie HendersonClimate Futures and JANEEMO Global Community Links
  2. 2. Biofuels in Malawi • drivers for biofuels • what’s currently happening • two case studies: BERL and JANEEMO • big biofuel questions Global Community Links
  3. 3. Why biofuels?• surging oil prices and tightening carbon budgetsdriving international demand• FOREX shortages: agriculture provided over 90% in2003• Employment: over 85% of population inagriculture• Fuel shortages: big contributor to unrest• Land and climate suitable for many biofuel crops Global Community Links
  4. 4. National approach and shortcomings• As presented by Malawi Energy RegulatoryAuthority (MERA)• The energy laws 2004 recognise biofuels in theenergy mix• however, little or no regulatory environment ontiming or implementation of targets, incentives forinvestment, feedstock types• also: need for RTD, oil company embracing ofblends, export/national level playing fields
  5. 5. Biofuels Association in Malawi • producers, NGOs, government representatives • holds events, lobbies government for overarching policies • a single voice to Government • chaired by BERL Global Community Links
  6. 6. BFA is lobbying for• price parity, VAT• consultants appointed to consider tax forindustry sustainability, food production,poverty, land use• protecting local producers by banning imports(‘side selling’)• which feedstock? eg Jatropha, soya, sunflower• standards• alignment of policies ie agriculture, finance,trade, development planning Global Community Links
  7. 7. BERL• Bio-Energy Resources Ltd• Founded 2006, investment 2008• 70 field staff – 10 districtsincluding Salima, Kasungu,Lilongwe• signed up over 20,000smallholders• planted Jatropha as boundaryfences: 600-1000 trees• guaranteed 25 MK per kg, 10 yearcontract• processed to paraffin substitute Global Community Links
  8. 8. BERL• proof of conceptprocessing plant being built• expecting 110,000 litres in2012• and 4m litres in 2016 Global Community Links
  9. 9. JANEEMO• agro-forestry initiative at thesmallholder level (2000households)• Jatropha, planted asboundary fence; Neem(pollarded for firewood);Moringa (intercropped andboundary)• encourage use and tradinglocally
  10. 10. Comparison- Malawian - Scot / Malawian- commercial - Donor, NfP, local- fixed price - n/a- long term contract - n/a-Jatropha (alongside - Jatropha, Neemother staples) and Moringa- lobbies government - not political Global Community Links
  11. 11. Big biofuel questions• Does the emerging biofuels industry present aviable job market for Malawian farmers?• Does this threaten food security?• How therefore can a food/biofuel balance bestruck?• What are the best smallholder models forsustainable food / biofuel production?• what crops?• which planting techniques eg boundaryfencing, alley cropping, river banks,monoculture Global Community Links
  12. 12. Big biofuel questions• Should biofuel be exported?• How do biofuels complement otherenvironmental initiatives eg reforestation,erosion control?• Will biofuels replace forests or grasslands?• How can a partnership model between Malawiand Scotland best foster successful biofuelenterprises? Global Community Links