bioEUParks presentation

1. RED REQUIREMENTS FOR BIOFUELS AND BIOLIQUIDS
Sustainability Criteria
Berlin
23.04.2013
Christoph Neitzel
nachwachsende-rohstoffe.de

2. Fachagentur Nachwachsende Rohstoffe e.V.
Contents
• Introduction
• Renewable Energy Directive
• Sustainability Criteria
• Monitoring, Reporting and Verification
• Certification Systems
• Mass Balance Method
• “Recent” developments
• Conclusions
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3. Fachagentur Nachwachsende Rohstoffe e.V.
Sustainability
• Forestry Sector since 300 yrs
− Hans Carl von Carlowitz,
German tax accountant and
mining administrator in Freiberg,
Saxony
− Scarcity of timber due to
intensive mining activities
− Sylvicultura oeconomica in 1713
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• EU-Strategy on SD
− “Sustainable Development
stands for meeting the needs of
present generations without
jeopardizing the ability of
futures generations to meet
their own needs.”
Source: AFZ, 1952

4. Fachagentur Nachwachsende Rohstoffe e.V.
Renewable Energy Directive (RED) 2009/28/EC
• The RED sets binding targets (in 2020):
− 20% target renewable sources in final consumption
(Art.3(1))
 National targets (Annex I Part A): AT 34%, GR 18%, HU
13%, IT 17%, SI 25%
 Progress (EUROSTAT, 2010): AT 30%, GR 9%, HU 9%,
IT 10%, SI 20%
− 10% target renewable sources in transport (Art.3(4))
• Requires National Renewable Energy Action Plans
(NREAPs) (Art.4)
− Deadline for Member States (MSs) notification June, 30th
2010 (Art.4(2))
− National targets for renewable energy shares in
transport, electricity, heating and cooling
− Biofuels & bioliquids not fulfilling Sustainability Criteria
are excluded
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Note: values represent % and are rounded for
progress AT GR HU IT SI
Targets (Annex I Part A) 34 18 13 17 25
Progress (EUROSTAT, 2010) 30 9 9 10 20

5. Fachagentur Nachwachsende Rohstoffe e.V.
Sustainability criteria in RED
• Sustainability criteria for biofuels & bioliquids
(Art.17)
− Four main criteria (Art.17(2-6))
− Importance of compliance, irrespective of whether the
raw materials were cultivated inside or outside the EU,
in order to be taken into account for:
 Fulfilling national/EU targets for renewable energy
 Fulfilling EU targets for reduced unit emissions from road
transport fuels
 Eligibility for the main types of government support
 Eligibility for investment and operating aid under the
environmental state aid guidelines
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Criterion 1: Greenhouse gas (GHG) savings
• Minimum rate of GHG savings (Art. 17(2))
− 35% immediately
− 50% in 2017
− 60% in 2018 (new installations only, on/after 2017)
• Rules for the calculation of GHG savings (Art.19)
− Default values provided
− “Actual” values according to calculation method
− Impact of actual land-use change in the production
chain must be taken into account

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Criterion 2: Biodiversity
• No raw material from land with high biodiversity
value (Art.17(3)):
− Three broad land categories in/after 2008:
 Undisturbed “Primary forest and other wooded land“:
• No human activity
• Intact ecological processes
 ”Areas designated“:
• Nature protection by law or competent authority
• Protection of rare, threatened or endangered ecosystems, or
species recognised by international agreements, or IUCN
• Exception: unless evidence is provided about compatibility
 “Highly biodiverse grassland”:
• Natural: remain in the absence of human activity
• Non-natural: require human activity, species-rich and not
degraded; exception: unless evidence is provided about
compatibility

8. Fachagentur Nachwachsende Rohstoffe e.V.
Criterion 3: High carbon stock
• No raw material from land with high carbon stock
(Art.17(4-5)):
− Three broad land categories in 2008, but no longer:
 “Wetlands“: covered/saturated permanently/mainly
 “Continuously forested areas”: area >1ha, height >5m,
canopy cover >30%; or ability to reach those thresholds
 Open “forested areas”: area >1ha, height >5m, canopy
cover 10-30%; or ability to reach those thresholds;
exception: unless evidence is provided about Criterion 1
(Art.17(2))
 Exception: unless at the time of harvest the status
corresponds to 2008
− One land category in 2008
 “Peatland”: exception: unless cultivation/harvesting does
not involve drainage of previously undrained soil
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9. Fachagentur Nachwachsende Rohstoffe e.V.
Criterion 4: Cross compliance
• Agricultural raw material cultivated (only) in the
EU must also meet the EU agricultural cross
compliance rules applied under the EU Common
Agricultural Policy (EC No 73/2009) (Art.17(6)):
− Requirements & standards (Annex II, part A, point 9);
e.g. plant protection products
− Minimum requirements (Art.6(1)); good agricultural and
environmental conditions
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10. Fachagentur Nachwachsende Rohstoffe e.V.
Monitoring, Reporting and Verification (MRV)
• MRV activities take place at three levels:
− Economic Operators  MSs  The Commission
• Economic Operators (Art.18):
− Show fulfilment of the sustainability criteria (Art.18(1))
− Track consignments with the mass balance method
(Art.18(1))
− Independent audit evaluate and verify provided information
(Art.18(3))
 MSs are primarily responsible for verification (Art.18(3))
 The Commission recognises certification schemes or
international agreements which comply with the criteria
(Art.18(4)), and MSs must accept the evidence these schemes
provide (Art.18(7))
• MSs (Art.22):
− Report (in addition) every two years on, e.g., changes in
commodity prices and land use
• The Commission (Art.17(7),23)
− Reports (in addition) every two years on, e.g., impact on
social sustainability
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11. Fachagentur Nachwachsende Rohstoffe e.V.
Certification schemes
• 13 recognised schemes by the EC (April, 2013)
• Examples of voluntary schemes:
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Netherlands Technical Agreement
Roundtable of Sustainable Biofuels EU RED
Round Table on Responsible Soy EU RED
Roundtable on Sustainable Palm Oil RED

12. Fachagentur Nachwachsende Rohstoffe e.V.
Example: International Sustainability and Carbon
Certification (ISCC), recognised since July, 2011
• ISCC transforms the requirements of the EU
Directive into a global certification system
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Source: ISCC, 2010

13. Fachagentur Nachwachsende Rohstoffe e.V.
• Mixing of certified and non-certified product flows
• % product sold as sustainable certified = %
sustainable certified material entering the process
Mass Balance Method
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Source: ISCC, 2011

14. Fachagentur Nachwachsende Rohstoffe e.V.
“Recent” Developments
• Commission Proposal (COM(2012)595) to
minimize the climate impacts of biofuel production
(Oct/2012):
− Suggests to limit conventional biofuels (with risk of
ILUC) currently attainable for fulfilment of EU targets
− Suggests to increase the minimum GHG saving
threshold for new (after July 2014) installations to 60%
− Suggests to provide market incentives (contribute more
to RED targets) for biofuels with low ILUC emissions
− Suggests the inclusion of indirect land-use change
(ILUC) factors in reporting by fuel suppliers and MSs
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15. Fachagentur Nachwachsende Rohstoffe e.V.
Conclusions
• Sustainability criteria are a fundamental aspect for
the development of supply chains from renewable
resources
− Liquid biomass available (RED 2009/28/EC)
− Solid biomass coming?
• Certification systems are able to verify compliance
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16. Fachagentur Nachwachsende Rohstoffe e.V.
Thank you for your attention!
Contact: Christoph Neitzel
c.neitzel@fnr.de
+49-3843-6930-177
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