Guidance biomass certification - Partners for innovation - NL Agency 20111013

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Guidance biomass certification - Partners for innovation - NL Agency 20111013

  1. 1. How to select a biomass certification scheme? Workshop Meeting for DBM and DBI project developers and project experts 13 October 2011, Utrecht Workshop organisers Ella Lammers (NL Agency) Arjen Brinkman (Brinkmann consultancy) Presentor Peter Vissers (Partners for Innovation) ProjectComparison of biomass sustainability certification schemes (DBI1004) Report available on: http://www.agentschapnl.nl/content/report-certification-schemes-partners-innovation Slide 1 of 24
  2. 2. 1. Partners for Innovation: sustainability services for biomass actors and industry • Consultancy firm in Amsterdam since 2004 • Experienced staff with many years in international projects • Works for: private sector (E+Co, Jatropha Alliance, SunBiofuels, GreenResources, Sara Lee, Desso, DAF, SITA, MaxiCosi/Dorel etc) and government (European Commission, Dutch government etc) • Topics: a) support of biomass sector (sustainability pre-certification services, business plan development, feasibility studies, potential studies, policy studies, capacity building, carbon footprints) b) support of manufacturing industry (sustainability requirements, lifecycle analysis, cradle-to-cradle, eco-design) • Provides pre-certification services to biomass operators through its network of affiliated experts • These experts typically have 15 years of involvement in the biomass sector in Europe (EU, Ukraine), South America (e.g. Argentina, Brazil, Colombia), Africa (e.g. Ghana, Mozambique, South Africa, Zambia) and Asia (e.g. Indonesia, Vietnam) • More information: www.partnersforinnovation.com and www.developingrenewables.org Slide 2 of 24Slide 2 of 24
  3. 3. 2.1 Background for the guidance studyBackground: NL Agency funds more than 40 sustainable biomass projects.Problem: Project developers encounter difficulties with the selection of biomass certification schemesObjective: Develop guidance for project developers to select biomass certification schemes (p13 guidance report) Slide 3 of 24
  4. 4. 2.2 Sustainability biomass standards: potentially an important market Market share of commodities certified to a set of ten major social and environmental standards25% 20%20% 18% 17%15%10% 8%5% 1% ?0% Global banana Global managed Global coffee Global tea Global cocoa Biomass-for- exports forests production production sales energy trade (Source: SSI Review 2010) Slide 4 of 24
  5. 5. 2.3 Sustainability biomass standards: a complex field Clean air, water & land Emission reductions Zero waste, releases and spills Biodiversity Health & Safety Environmental regulations Global climate change Resource efficiency Access to potable water Product stewardship Crisis management Life cycle management Environmental justice Products to services Innovation Diversity Capital efficiency Human rights Risk management Community outreach Margin improvement Indigenous communities Job creation Growth enhancement Labour relations Skills enhancement Shareholder return Local economic impacts Social investments Business ethics Security Slide 5 of 24
  6. 6. 2.4 Environmental and social labels: many labels exist 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 Slide 6 of 24
  7. 7. 2.5 Environmental and social labels: many possibilities also for biomass 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) Slide 7 of 24
  8. 8. 2.6 Sustainability biomass standards: an early market Many standards went live only recently (source: own research) 2011 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 Slide 8 of 24
  9. 9. 3.1 Sustainability biomass standards: the approach chosenSo, how to select in such an early market?How to make sure that biomass producers getbenefits out of their certificates?We developed a simple selection method > biomass producers make theirown assessment in a structured approach while contacting customers andother chain partners.We also provided information on 18 most relevant biomass standards.These are the 12 standards that were submitted to the EC for RED recognitionin May 2011 and 6 additional standards. We provided detailed validatedinformation for 5 standards, and briefs for 13 standards.We used the views of 5 certification bodies while designing the selectionmethod.Contract period: November 2010 – May 2011 Slide 9 of 24
  10. 10. 3.2 We developed a 3-step approach to select a certification scheme Step 1 Step 2 Step 3 Make a final choice Is biomass certification Which certification and engage appropriate for your business? scheme(s) to select? 2.1 Fit with organisational and biomass chain characteristics 2.2 Does the scheme facilitate trade of your product? 2.3 Does the scheme meet legal 3.1 Talk with certification bodies requirements? about your plans1.1 Assess your organisation’s ambitions and situation 2.4 Is the scheme credible? 3.2 Talk with your customers about selecting a certification scheme1.2 Talk with your customers about their needs and requirements 2.5 Easiness to comply with the standard’s 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 (p12 and p21 guidance report) Slide 10 of 24
  11. 11. 3.3 We prepared a form to be filled in by biomass actors Question / Issue to decide Answer 1.1a Describe the expected revenues (preferably in 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 financial) associated with your organisation? Is biomass 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? 2.3 Which schemes meet the relevant legal requirements? Which certification scheme(s) to select? 2.4 Which schemes are credible? 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 and engage 3.2 Talk with your customers about selecting a certification scheme 3.3 Make a final choice and engage (p34 guidance report) Slide 11 of 24
  12. 12. 3.4 We provide info on the following 18 schemes Operationa Chain RED Sustainability criteria Scope and coverage Name l since coverage applicant Biodiv GHG Env Social Feedstock Geographic focus 2BSvs 2010 All stages Yes Yes Yes No No All biomass Global Global (for Abengoa 2010 All stages Yes Yes Yes No No All biomass Abengoa supply) Biograce 2011 All stages Foreseen No Yes No No All biomass Global Global (focus on Bonsucro 2010 All stages Yes Yes Yes Yes Yes Sugarcane sugarcane regions) FSC 1993 All stages No Yes No Yes Yes Forestry biomass Global Global (for GGL 2002 All stages No Yes Yes Yes Yes All biomass Essent supply) Biomass Agricultural Globalgap 1997 No Yes No Yes Yes Global production biomass Global (for Greenergy 2008 All stages Yes Yes Yes Yes Yes All biomass Greenergy supply) ISCC 2010 All stages Yes Yes Yes Yes Yes All biomass Global Global (for Laborelec 2006 All stages No Yes Yes Yes Yes All biomass Supply) Global (for Neste Oil 2009 All stages Yes Yes Yes Yes Yes All biomass Neste Oil supply) NTA8080 2011 All stages Yes Yes Yes Yes Yes All biomass Global REDcert 2010 All stages Yes Yes Yes No No EU-27 biomass EU-27 Red Biomass Agricultural 2010 Yes Yes Yes Yes Yes EU-27 / Tractor production biomass RSB 2011 All stages Yes Yes Yes Yes Yes All biomass Global Global (focus on RSPO 2007 All stages Yes Yes No Yes Yes Palm oil palm oil regions) Global (focus on RTRS 2010 All stages Yes Yes Yes Yes Yes Soy soy regions) Biomass Agricultural SAN 1992 No Yes Option Yes Yes Global production biomass (p19 guidance report) Slide 12 of 24
  13. 13. 3.5 Example: selection method applied to a Brazilian ethanol producer Operationa Chain RED Sustainability criteria Scope and coverage Name l since coverage applicant Biodiv GHG Env Social Feedstock Geographic focus 2BSvs 2010 All stages Yes Yes Yes No No All biomass Global Global (for Abengoa 2010 All stages Yes Yes Yes No No All biomass Abengoa supply) Biograce 2011 All stages Foreseen No Yes No No All biomass Global Global (focus on Bonsucro 2010 All stages Yes Yes Yes Yes Yes Sugarcane sugarcane regions) FSC 1993 All stages No Yes No Yes Yes Forestry biomass Global Global (for GGL 2002 All stages No Yes Yes Yes Yes All biomass Essent supply) Biomass Agricultural Globalgap 1997 No Yes No Yes Yes Global production biomass Global (for Greenergy 2008 All stages Yes Yes Yes Yes Yes All biomass Greenergy supply) ISCC 2010 All stages Yes Yes Yes Yes Yes All biomass Global Global (for Laborelec 2006 All stages No Yes Yes Yes Yes All biomass Supply) Global (for Neste Oil 2009 All stages Yes Yes Yes Yes Yes All biomass Neste Oil supply) NTA8080 2011 All stages Yes Yes Yes Yes Yes All biomass Global REDcert 2010 All stages Yes Yes Yes No No EU-27 biomass EU-27 Red Biomass Agricultural 2010 Yes Yes Yes Yes Yes EU-27 / Tractor production biomass RSB 2011 All stages Yes Yes Yes Yes Yes All biomass Global Global (focus on RSPO 2007 All stages Yes Yes No Yes Yes Palm oil palm oil regions) Global (focus on RTRS 2010 All stages Yes Yes Yes Yes Yes Soy soy regions) Biomass Agricultural SAN 1992 No Yes Option Yes Yes Global production biomass Best fit Second best fit Third best fit (p35 guidance report) Slide 13 of 24
  14. 14. 3.6 We prepared guidance on specific aspects. Example: credibility FSC ISCC NTA8080 REDcert RSB Global multi- No standard stakeholder Multi-stakeholder setting (directly Global multi- dialogue with dialogue with Global multi- taken from RED).Standard setting stakeholder important important stakeholder Advisory dialogue influence of influence of Dutch dialogue committee on German stakeholders developments stakeholders Not focused on Beyond RED Beyond RED Aligned to RED Beyond RED RED compliance Coverage of sustainability Broad coverage of Broad coverage of Broad coverage of Broad coverage of principles sustainability sustainability sustainability sustainability issues. No issues issues issues coverage of GHG By the German By the German By an By the Federal By the Dutch Federal independent independent Government Accreditation Government Accreditation accreditation accreditation Agency for Council and IAF Agency for body body Agriculture and 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 of ISEAL Alliance of ISEAL Alliance and ISO ISEAL Alliance (p27 guidance report, updated October 2011) Slide 14 of 24
  15. 15. 3.6 We prepared guidance on specific aspects. Example: credibility FSC ISCC NTA8080 REDcert RSB Global multi- No standard stakeholder Multi-stakeholder setting (directly Global multi- dialogue with dialogue with Global multi- taken from RED).Standard setting stakeholder important important stakeholder Advisory dialogue influence of influence of Dutch dialogue committee on German stakeholders developments stakeholders Not focused on Beyond RED Beyond RED Aligned to RED Beyond RED RED compliance Coverage of sustainability Broad coverage of Broad coverage of Broad coverage of Broad coverage of principles sustainability sustainability sustainability sustainability issues. No issues issues issues coverage of GHG By the German By the German By an By the Federal By the Dutch Federal independent independent Government Accreditation Government Accreditation accreditation accreditation Agency for Council and IAF Agency for body body Agriculture and 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 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 of ISEAL Alliance of ISEAL Alliance CEN and ISO ISEAL Alliance (Best in class using ISEAL good practice principles and ISEAL-100 survey findings) Slide 15 of 24
  16. 16. 3.7 We prepared guidance on specific aspects. Example: market uptake FSC ISCC NTA8080 REDcert RSB 19,749 621 3 945 None CoC certificates, certificates certificates certificates (2 in progress) Number of certificates 1,028 FM/CoC issued certificates (Feb 2011) (Oct 2011) (Oct 2011) (Oct 2011) (Oct 2011)Year of going live 1993 2010 2011 2010 2011 (p28 guidance report, updated October 2011) Slide 16 of 24
  17. 17. 3.7 We prepared guidance on specific aspects. Example: market uptake FSC ISCC NTA8080 REDcert RSB 19,749 621 3 945 None CoC certificates, certificates certificates certificates (2 in progress) Number of certificates 1,028 FM/CoC issued certificates (Feb 2011) (Oct 2011) (Oct 2011) (Oct 2011) (Oct 2011)Year of going live 1993 2010 2011 2010 2011It is unclear how the market uptake will evolve. Certification bodies have high opportunitycost to be in business for a certification system: each system asks for qualified auditors,specific procedures and other requirements. A number of certification bodies indicatethat the market only needs a few standards covering all types of biofuels andaddressing 3 to 4 levels of sustainability.(Source: interviews with 5 certification bodies, internal memo to AGNL, 2011) (Highest number of users) Slide 17 of 24
  18. 18. 3.8 We prepared guidance on specific aspects. Example: benefits Total benefits Direct Indirect (additional revenue)Price premium Additional sales Monetary Non-monetary Organizational Environmental Cost reduction Social Avoidance of loss Other of sales revenue (Figure: adapted from Simula et al 2004)There is only very little factual information available about benefits. In forestry, improvedmarket 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) Slide 18 of 24
  19. 19. 3.9 We prepared guidance on specific aspects. Example: costs 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 and inventory PlanningThere is also little information available on costs.SSI (2010) indicates direct cost between Operational Management€0.1 and €1.5/ha/yr for sustainable forestry initiatives.Savcor (2005) reports direct costs between €0.02 and €0.8/ha/yr inScandinavian forestry, and indirect costs between 0.5€ and 14€/ha/yr. (Figure: adapted from Simula et al 2004) Slide 19 of 24
  20. 20. 4.1 Add on: info on the services of certification bodies NTA ISCC REDcert RSB Other 8080 2BSvs, Bonsucro, FSC, GGL, Globalgap, yes yes yes Applied PEFC, RTRS, RSPO, Fairtrade, UTZ certified yes yes yes - no info - - - Applied no info yes - yes Applied PEFC 2BSvs, yes yes yes Applied Bonsucro, FSC, RSPO, RTRS (Source: websites of standard systems and certification bodies, October 2011) Slide 20 of 24
  21. 21. 4.2 Add-on: a 3-step approach to prepare biomass actors for certification Preparation Roadmap Certification Determine your current Define todo-s and Engage with level of compliance improve cost auditors effectiveness Tools: Tools: Tools: 1. Gap analysis 1. Roadmap and 1. Guidance on questionnaire and costing tool auditor assessment tool selection 2. Checklist on required documentary evidence 3. GHG questionaire (Reports and selected tools available on http://www.jatropha-alliance.org/index.php?id=66 and www.agentschapnl.nl/nieuws/toolbox-gap-analysis-rsb-sustainability-standard ) Slide 21 of 24
  22. 22. 4.3 Add-on: a gap analysis tool for biomass certification P1 Legality 10 P2 Planning, monitoring, cont. Examplary identified P12 Land rights 8 improvement gaps 6 Principle 2: P11 Technology P3 Greenhouse gases EIA conducted but 4 social management 2 plan missing P10 Air 0 P4 Human and labour rights >> 9 points Principle 9: Water sources P5 Rural and local P9 Water development inventory missing. >> 6 points RSB compliance level P8 Soil P6 Food security (possible pass) Gap scores : P7 Conservation Typical Jatropha Company 10: adequate, Mozambique 8: needs improvement 5: needs significant improvement 0: not covered(Reports and selected tools available on http://www.jatropha-alliance.org/index.php?id=66 andwww.agentschapnl.nl/nieuws/toolbox-gap-analysis-rsb-sustainability-standard ) Slide 22 of 24
  23. 23. 4.4 Add-on: a roadmap tool: insight in todo’s + reduced costs 900 The roadmap exercise of 800 Sun BiofuelsEstimated cost for RSB certification Mozambique SA 700 Compliance costs resulted in: and compliance (in k$) 600 to be spread over years 1. Good insight in the ( 500 required actions and their costs 400 300 Costs to obtain 2. Reduced cost to the 1st certificate obtain the 1st 200 (compliance and certificate 100 certification cost) (-89%!!) 0 3. Possibility to spread 1st estimate 2nd estimate costs over several (initial roadmap - (final roadmap - years and to May 2011) June 2011) reassess actions (Related report published on www.agentschapnl.nl/biomass) Slide 23 of 24
  24. 24. 5.1 Our ambition: help biomass actors to be successful Partners for Innovation BV Peter Vissers Peter Karsch Emiel Hanekamp Saskia de Lint Ingeborg Gort-Duurkoop Siem Haffmans Please do contact us if you think we can be of value for you ☺ Cruquiusweg 20 t +31 20 620 0511 (NL office) NL-1019 AT Amsterdam (The Netherlands) m +31 6 4260 9354 (NL mobile) e p.vissers@partnersforinnovation.com t +32 80 511 955 (BE office) skype visserspeter m +32 497 570 466 (BE mobile) i www.partnersforinnovation.com i www.co2-neutraal.nu i www.developingrenewables.orgSlide 24 of 24 Slide 24 of 24

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