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Introduction to biomass certification schemes

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Introduction to biomass certification schemes for biofuel producers from emerging and developing countries.

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Introduction to biomass certification schemes

  1. 1. Achieving Sustainability an introduction to:Biomass Certification SchemesEmiel HanekampPartners for Innovation BVNovember 2011
  2. 2. Achieving Sustainability an introduction to: Biomass Certification Schemes Congress: Biomass West & Central Africa 2011 Accra, Ghana2 an introduction to: Biomass Certification Schemes
  3. 3. Achieving SustainabilityPartners 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 policies3 an introduction to: Biomass Certification Schemes
  4. 4. Achieving SustainabilityOur 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 Vietnam4 an introduction to: Biomass Certification Schemes
  5. 5. Achieving SustainabilityExamples of projects Towards Sustainability Certification of Jatropha bio-fuels in Mozambique Selection of GHG calculations Sustainability Guidance on selectiona certification Sun Biofuels value assessment of of a biomass certification scheme chain plantations scheme (May 2011) http://www.jatropha-alliance.org http://www.agentschapnl.nl5 an introduction to: Biomass Certification Schemes
  6. 6. Achieving SustainabilityGap 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 covered6 an introduction to: Biomass Certification Schemes
  7. 7. Achieving SustainabilityDriving 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 opportunities7 an introduction to: Biomass Certification Schemes
  8. 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. 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 inventoryThere 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 ManagementSavcor (2005) reports direct costs between €0.02 and €0.8/ha/yr inScandinavian forestry, and indirect costs between 0.5€ and 14€/ha/yr.9 an introduction to: Biomass Certification Schemes
  10. 10. Achieving Sustainability Market share of commodities certified to a set of ten major social and environmental standards25% 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. 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 Biofuel11 an introduction to: Biomass Certification Schemes
  12. 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 enhancementIndigenous communities Business ethics Labour relations Shareholder return Security12 an introduction to: Biomass Certification Schemes
  13. 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. 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 RTRS1990 1995 2000 2005 2010 2015 14 an introduction to: Biomass Certification Schemes
  15. 15. Achieving SustainabilitySo, how to select a standard in such an early market? We developed a simple method + Information on 18 most relevant biomass (for energy) standards15 an introduction to: Biomass Certification Schemes
  16. 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 certification1.1 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 a1.2 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 requirements16 an introduction to: Biomass Certification Schemes
  17. 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? certificationappropriate 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 plansMake 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
  18. 18. Achieving Sustainability18 an introduction to: Biomass Certification Schemes
  19. 19. Achieving Sustainability Best fit Second best fit Third best fit19 an introduction to: Biomass Certification Schemes
  20. 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 Broadsustainability 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 independentAccreditation 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-profitorganisation 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. 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 Broadsustainability 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 independentAccreditation 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 Independentorganisation 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. 22. Achieving SustainabilityMarket uptake of certification schemes FSC ISCC NTA8080 REDcert RSB 19,749 621 3 945 None CoC certificates certificates certificates certificates (2 inNumber 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 2011going live22 an introduction to: Biomass Certification Schemes
  23. 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, RTRS23 an introduction to: Biomass Certification Schemes
  24. 24. Achieving Sustainability Our ambition: help biomass actors to be successfulSlide 24 of 24 an introduction to: Biomass Certification Schemes

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