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Introduction to biomass certification schemes
1. Achieving Sustainability
an introduction to:
Biomass Certification
Schemes
Emiel Hanekamp
Partners for Innovation BV
November 2011
2. Achieving Sustainability
an introduction to:
Biomass Certification Schemes
Congress:
Biomass West & Central Africa 2011
Accra, Ghana
2 an introduction to: Biomass Certification Schemes
3. Achieving Sustainability
Partners for Innovation
– Consultancy firm in Amsterdam (Netherlands) since 2004
– Experienced staff (>15 years) with many years in international projects
– Private sector clients: Governmental clients:
E+Co, Jatropha Alliance, SunBiofuels, European Commission, Dutch
GreenResources, Bio2Watt, Sara Lee, Ministries of Environment and
Desso, DAF Trucks, MaxiCosi (Dorel), Economic Affairs, Municipalities of The
SITA and etcetera Hague and Amsterdam and etcetera
– Expertise subjects: 1. Sustainable biomass
2. Product innovations
3. Energy and Climate policies
3 an introduction to: Biomass Certification Schemes
4. Achieving Sustainability
Our Sustainable Biomass services
– Our ambition: help biomass actors to be successful
– Our services:
1. sustainability pre-certification services
2. business plan development
3. feasibility studies
4. market potential studies
5. policy studies
6. capacity building
7. carbon footprints and CDM carbon credit development
– Country coverage:
Europe: EU and Ukraine
South America: Argentina, Brazil and Colombia
Africa: Mozambique, Ghana, South Africa, Zambia, Madagaskar and Tanzania
Asia: Indonesia and Vietnam
4 an introduction to: Biomass Certification Schemes
5. Achieving Sustainability
Examples of projects
Towards Sustainability Certification of Jatropha
bio-fuels in Mozambique
Selection of GHG calculations Sustainability Guidance on selection
a certification Sun Biofuels value assessment of of a biomass certification
scheme chain plantations scheme (May 2011)
http://www.jatropha-alliance.org http://www.agentschapnl.nl
5 an introduction to: Biomass Certification Schemes
6. Achieving Sustainability
Gap analysis for biomass certification (RSB)
Examplary identified
gaps
Principle 2:
EIA conducted but
social management
plan missing
>> 9 points
Principle 9:
Water sources
inventory missing.
>> 6 points
Gap scores :
10: adequate,
8: needs improvement
5: needs significant improvement
0: not covered
6 an introduction to: Biomass Certification Schemes
7. Achieving Sustainability
Driving forces for sustainable biomass certification
1. Risk reduction
Operational risks
Reputational risks
You want to
2. Increased efficiency EXPORT TO EU, US or Japan?
3. Legislation
Sustainable biofuels You need certification!
Illegal logging
4. Market opportunities
7 an introduction to: Biomass Certification Schemes
8. Achieving Sustainability
Total benefits
Direct Indirect
(additional revenue)
Price premium Additional sales Monetary Non-monetary
Organizational
Environmental
Cost reduction Social
Avoidance of loss Other (Figure: adapted from Simula et al 2004)
of sales revenue
There is only very little factual information available about benefits. In forestry, improved
market access was found to be the most consistent economic effect (Cashore 2006).
SSI mentions price premiums for FSC (4-20% in USA and EU) and PEFC (0-1% in USA and EU)
(SSI review 2010).
Other studies indicate positive cost/benefit ratios for forest and fair trade initiatives
(International Tropical Timber Council 2004, FAO 2007)
8 an introduction to: Biomass Certification Schemes
9. Achieving Sustainability
Total Costs
Direct cost Indirect cost
External auditing Internal costs Compliance with the Compliance with the
performance criteria management system
Preparation Participation in criteria
Initial costs the process
Monitoring and
Cost of
surveillance audits Social internal auditing R&D
Ecological
Plantation management Resource Documentation
assessment
Planning and inventory
There is also little information available on costs.
SSI (2010) indicates direct cost between
€0.1 and €1.5/ha/yr for sustainable forestry initiatives. Operational Management
Savcor (2005) reports direct costs between €0.02 and €0.8/ha/yr in
Scandinavian forestry, and indirect costs between 0.5€ and 14€/ha/yr.
9 an introduction to: Biomass Certification Schemes
10. Achieving Sustainability
Market share of commodities certified
to a set of ten major social and environmental standards
25%
20%
20% 18%
17%
15%
10% 8%
5%
0%
1% ?
Global banana Global managed Global coffee Global tea Global cocoa Biomass-for-
exports forests production production sales energy trade
(Source: SSI Review 2010)
10 an introduction to: Biomass Certification Schemes
11. Achieving Sustainability
Many ecolabels exist
(Number of ecolabels per keyword. Source: www.ecolabelindex.com)
500
430
400
300
200
100 76
53 51
25 22
9 8 5 4 1
0
All Energy Food Farm Fair Forest Fuel Wood FSC Biomass Biofuel
11 an introduction to: Biomass Certification Schemes
12. Achieving Sustainability
Clean air, water & land
Health & Safety Emission reductions
Environmental regulations Zero waste, releases and spills
Global climate change Biodiversity Resource efficiency
Access to potable water Product stewardship
Crisis management Life cycle management
Environmental justice Products to services
Innovation
Job creation Capital efficiency
Diversity Skills enhancement
Human rights Risk management
Local economic impacts Margin improvement
Community outreach
Social investments Growth enhancement
Indigenous communities Business ethics
Labour relations Shareholder return
Security
12 an introduction to: Biomass Certification Schemes
13. Achieving Sustainability
Bioenergy sustainability initiatives/standards
(Number of standards or initiatives. Sources: GBEP, FAO, EC, own research)
100
83
80
60
40
23 22
20
7
0
GBEP (2008) FAO (2011) EC RED (2011) EC RED (2011)
initiatives on bioenergy regulatory standards submitted standards approved
sustainable bioenergy frameworks, standards, for recognition (as far
development score-cards as known)
13 an introduction to: Biomass Certification Schemes
14. Achieving Sustainability
Many standards went live only recently 2011
(source: own research)
Biograce
2009 NTA8080
Neste Oil RSB
2008 2010
Greenergy 2BSvs
Abengoa
2007 BSI
RSPO ISCC
REDcert
1992 1993 1997 2002 2006 Red Tractor
SAN FSC Globalgap GGL Laborelec RTRS
1990 1995 2000 2005 2010 2015
14 an introduction to: Biomass Certification Schemes
15. Achieving Sustainability
So, how to select a standard in such an early market?
We developed a simple method
+
Information on 18 most relevant
biomass (for energy) standards
15 an introduction to: Biomass Certification Schemes
16. Achieving Sustainability
Step 1 Step 2 Step 3
Is biomass certification Which certification Make a final choice
appropriate for your business? scheme(s) to select? and engage
2.1 Fit with organisational
and biomass chain
characteristics
2.2 Does the scheme
facilitate trade of your
product? 3.1 Talk with certification
1.1 Assess your bodies about your plans
organisation’s ambitions 2.3 Does the scheme meet
and situation legal requirements?
3.2 Talk with your customers
2.4 Is the scheme credible? about selecting a
1.2 Talk with your customers 2.5 Easiness to comply with certification scheme
about their needs and the standard’s
requirements requirements 3.3 Make a final choice and
engage
2.6 Fit with your willingness
to pay for the scheme
benefits
2.7 Fit with customer needs
and requirements
16 an introduction to: Biomass Certification Schemes
17. Steps Question / Issue to decide Answer
1.1a Describe the expected revenues (preferably in
Achieving Sustainability
numbers) and market opportunities (short and long term),
both national and export.
1.1b What regulatory requirements are relevant for your
organisation and what could be their impact?
1.1c Are there operational risks (environmental, social and
Is biomass financial) associated with your organisation?
certification
appropriate for your
business? 1.1d Is there an intrinsic motivation to do business in an
ethical and responsible way? What are you already doing?
1.1e Is an increase of your operational costs a problem?
Do the advantages outweigh these extra costs?
1.2 Does your customer want your products to be
certified? Which scheme? If not, what are your customer’s
needs and requirements?
2.1 Which schemes fit with your organisational and
biomass chain characteristics?
2.2 Which schemes facilitate trade of your product?
Which certification 2.3 Which schemes meet the relevant legal requirements?
scheme(s) to 2.4 Which schemes are credible?
select?
2.5 Which schemes are the easiest to comply with?
2.6 What are the scheme and compliance costs?
2.7 Which schemes fit with your (potential) customer
needs and requirements?
3.1 Talk with certification bodies about your plans
Make a final choice 3.2 Talk with your customers about selecting a
17 engage
and certification scheme an introduction to: Biomass Certification Schemes
3.3 Make a final choice and engage
19. Achieving Sustainability
Best fit Second best fit Third best fit
19 an introduction to: Biomass Certification Schemes
20. FSC ISCC NTA8080 REDcert RSB
Global multi-
Achieving Sustainability Multi- No standard
stakeholder stakeholder setting (directly
Standard Global multi- dialogue with dialogue with taken from Global multi-
setting stakeholder important important RED). Advisory stakeholder
dialogue influence of influence of committee on dialogue
German Dutch developments
stakeholders stakeholders
Not focused on Beyond RED Beyond RED Aligned to RED Beyond RED
RED compliance
Coverage of Broad coverage Broad Broad Broad
sustainability of sustainability coverage of coverage of coverage of
principles issues. No sustainability sustainability sustainability
coverage of issues issues issues
GHG
By the German By the German By an
By the Federal By the Dutch Federal independent
Accreditation independent Government Accreditation Government accreditation
accreditation Agency for Council and Agency for body
body Agriculture and IAF members Agriculture and (to be defined)
Food (BLE) Food (BLE)
Third party Yes Yes Yes Yes. Yes
verification
Independent Independent Independent Independent Independent
Type of Not-for-profit Mix of not-for- Not-for-profit Profit Not-for-profit
organisation profit and profit
Full Member Affiliate Member of Full Member of
Adherence
20 of ISEAL of ISEAL an introduction to: Biomass Certification Schemes
and ISO ISEAL Alliance
Alliance Alliance
21. FSC ISCC NTA8080 REDcert RSB
Achieving Sustainability
Global multi- Multi- No standard
stakeholder stakeholder setting (directly
Standard Global multi- dialogue with dialogue with taken from Global multi-
setting stakeholder important important RED). Advisory stakeholder
dialogue influence of influence of committee on dialogue
German Dutch developments
stakeholders stakeholders
Not focused on Beyond RED Beyond RED Aligned to RED Beyond RED
RED compliance
Coverage of Broad coverage Broad Broad Broad
sustainability of sustainability coverage of coverage of coverage of
principles issues. No sustainability sustainability sustainability
coverage of GHG issues issues issues
By the German By the German By an
By the Federal By the Dutch Federal independent
Accreditation independent Government Accreditation Government accreditation
accreditation Agency for Council and Agency for body
body Agriculture and IAF members Agriculture and (to be defined)
Food (BLE) Food (BLE)
Third party Yes Yes Yes Yes Yes
verification
Type of Independent Independent Independent Independent Independent
organisation Not-for-profit Mix of not-for- Not-for-profit Profit Not-for-profit
profit and profit
Full Member Affiliate Member of Full Member of
Adherence
21 of ISEAL Alliance of ISEAL CEN and ISO to: Biomass Certification Schemes
an introduction ISEAL Alliance
Alliance
22. Achieving Sustainability
Market uptake of certification schemes
FSC ISCC NTA8080 REDcert RSB
19,749 621 3 945 None
CoC certificates certificates certificates certificates (2 in
Number of progress)
certificates 1,028 FM/CoC
issued certificates
(Feb 2011) (Oct 2011) (Oct 2011) (Oct 2011) (Oct 2011)
Year of 1993 2010 2011 2010 2011
going live
22 an introduction to: Biomass Certification Schemes
23. Achieving Sustainability
ISCC NTA 8080 REDcert RSB Other
Control Union
2BSvs, Bonsucro,
FSC, GGL,
Globalgap, PEFC,
yes yes yes Applied
RTRS, RSPO,
Fairtrade, UTZ
certified
yes yes yes - no info
DNV - - - Applied no info
DQS yes - yes Applied PEFC
2BSvs, Bonsucro,
yes yes yes Applied
FSC, RSPO, RTRS
23 an introduction to: Biomass Certification Schemes
24. Achieving Sustainability
Our ambition: help biomass actors to be successful
Slide 24 of 24 an introduction to: Biomass Certification Schemes