Implementing Sustainability Certification Schemes for Biodiesel27 January 2011, LondonMeo Carbon Solutions GmbHDr. Jan M. HenkeWeissenburgstr. 53D-50670 Kölnwww.email@example.com 1!
Meo is a management consulting company. It carries out projects mainly inthe field of renewable energy and sustainability Current activities • Build up and operate the International Sustainability and Carbon Certification (ISCC) System, supported by FNR/BMELV • Application and implementation of sustainability standards in all market sectors • Actual GHG calculations for private sector clients and strategy advise • Advice for financial institutions in the field of sustainability as a prerequisite for financing • Analysis of current and upcoming biofuels policy on behalf of a private organisation • Balancing land use management, sustainable biomass production and conservation. Project on behalf of BMU, carried out in cooperation with WWF • Sustainability strategy and implementation measures for companies in different sectors 2!
Recognized and accepted by relevant market players in Germany andabroad – ISCC one year after take off International Sustainability and Carbon Certification (ISCC) at a glance• Starting point: Instrument to proof compliance with the requirements of the Renewable Energy Directive (RED) and national legislation of member states to implement RED• ISCC is used by major market players in trade and conversion, share of first gathering points is increasing• ISCC has a strong presence in Europe. Acceptance and use in the Americas, South East Asia and West Africa is increasing• ISCC components are designed to fulfil the requirements of the RED. The ISCC certificate offers additional security as it covers also ecological and social issues which is of particular relevance in certain countries outside the EU• ISCC has been recognized by the German authority (BLE) and has applied for recognition at the EC• ISCC development is based on a balanced multi stakeholder approach. Number of ISCC e.V. members doubled within one year• ISCC has started to apply the system in chemical /technical and food / feed markets 3!
Certificates and registrations show a strong increase since September2010No.*: estimate 4!
Currently about 340 companies are registered with ISCC. More than threequarters of all registrations are in Europe 5!
Interest in ISCC certification is increasing in the Americas, South EastAsia and also in West Africa GRL ISL SWE NOR RUS EST LVA MEX DNK LTU CAN IRL NLD BLR BEL LUX KAZ CHE HRV ROU MNG BIH SCG USA ITA BGR GEO UZB ALB MKD KGZ ARM PRK ESP GRC TKM AZE TJK PRT KOR SYR JPN TUN MLT CYP BMU LBN AFG IRQ CHN MAR ISR IRN JOR PAK NPL BTN DZA KWT LBY EGY BHS BHR ESH QAT BGD HKG ARE CUB SAU IND TWN TCA OMN MRT MMR MAC CYM DOM LAO PRI ATG NER JAM HTI MLI MNP GLP DMA CPV ERI YEM THA HND MTQ SEN TCD LCA VNM VCT BRB GMB BFA SDN KHM PHL NIC GRD GNB DJI GIN TTO BEN CRI TGO NGA SOM LKA ETH PAN SLE CIV GHA FSM VEN GUY CAF LBR BRN SUR CMR COL GUF MDV MYS GNQ COG UGA STP GAB KEN ECU NRU COD RWA BDI PNG TZA SYC SLB PER COM AGO MWI MYT BRA ZMB VUT BOL SHN FJI MOZ MDG MUS ZWE REU NCL BWA PRY NAM SWZ ZAF LSO URY CHL ARG NZL ISCC Registrations / Certificates Expected registrations 6!
Processing units dominate in registration, the number of first gatheringpoints increased from 11% to 29% in the last two months 7!
More than 160 ISCC certificates have been issued, most of them forcompanies in the EU 8!
One quarter of all certificates are issued for first gathering points 9!
Even more important than the number of registrations and certificates isthe relative market share as this reflects also the size of the companiesIn the European Union, 5.1 mil. tons of biodiesel and 3.2 mil. m3 bioethanol production capacity are ISCC certified Market Share ISCC Market Share ISCC EU Bioethanol Production Capacities EU Biodiesel Production Capacities ISCC ISCCCalculations based on public figures of industry associations. Shares as of December 31, 2010In addition, biodiesel and ethanol production units in Central and South America and South East Asia are ISCC certified or are registered for certification. 10!
ISCC is governed by a system of clear rules. Stakeholders arerepresented in the ISCC e.V. which is open to new members Benefits of ISCC membership ISCC Association e.V. • Vote in General Assembly, participation in important decisions and further system development Stakeholder forum • Possibilty to participate in Technical Committees • Reduced rates for the use of the system • First hand information about actual developments ISCC System GmbH • Technical support by ISCC System GmbH Day to day operations • Clear separation of stakeholder representation of the certification scheme and daily operations. Stakeholders are thus released from liability of operations 11!
The number of ISCC e.V. members is continuously growing. It hasdoubled since the inauguration in January 2010 12!
Prior to registration, the company must choose a certification body (CB).ISCC is already cooperating with 17 certification bodies Certification bodies recognized by BLE and using the ISCC system• Contact details available at: iscc- system.org• Elements in the supply chain that want to be audited can contact the CBs directly• Auditors must participate in 3 day ISCC training• Trainings for CBs in Europe, SEA, LA• About 300 auditors trained already 13!
The certification process comprises four steps. The online registration atthe ISCC website is the starting point 1 Get ISCC registration online via ISCC website 2 Prepare for the audit 3 Audit 4 Receive certificate 14!
Audits conducted by a recognised certification body may have a differentfocus depending on the element of the supply chain Elements of the supply chain First Farm/ Transport Gathering Transport Warehouse Transport Conversion Plantation Point Audit focus Audit focus Audit focus Audit focus Sustainability/ Chain of Chain of Chain of no-go area custody custody custody check GHG (if not GHG (if not default value) default value) Audits conducted by an independent certification body. Certificate issued after successful audit 16!
Focal points of the chain of custody audit: example conversion units Chain of Custody Audit CoC Management system Production reports etc. Input Output docu- docu-Warehouse Transport ments, Conversion ments, Transport Supplier etc. etc. Mass balance bookkeeping Certificate 17!
A certificate enables to issue a sustainability declaration with all requiredinformation to identify and trace back sustainable products* Certificate First Farm/ Transport Gathering Transport Warehouse Plantation Point Audit Sustainability declaration Amount and kind of sustainable biomass (kg/mt) GHG Value of biomass (kg CO2equi/t biomass) Contract number Name, address and certificate number of issuing party Name, address of receiving party Delivery date etc.* biomass, bioliquid or biofuel 18!
The ISCC internet platform serves as a main communication channel, andprovides information and tools for ISCC clients, members and CBs ISCC Members, cooperating CBs and ISCC registered companies have access to additional information on the execution of an audit and simplification of audit preparation 19!
ISCC has developed audit procedures for different supply chain elements.The use of the audit procedures is mandatory for the CBs ISCC audit procedures for: • First gathering point • Farm/ plantation • Conversion units • Warehouses and supplier 20!
Short document checklists for companies and CBs for an easy auditpreparation are available ISCC Document checklists for: • Farm/Plantation • First gathering point • Warehouse • Conversion Unit Oil mill • Conversion Unit Refinery • Conversion Unit Biodiesel • Conversion Unit Ethanol 21!
ISCC has developed a tool to create proofs of sustainability for the lastinterfaces 22!
We invite you to participate in our General Assembly in Brussels Online registration for General Assembly 23!
Summary and conclusions• Sustainability certification has taken off. ISCC works in practice; used in Europe and overseas• ISCC is a global scheme covering all kind of biomass. It is a one stop shop for companies• ISCC is a quality standard: It provides more security as it covers also social sustainability issues – at no or marginal additional costs• ISCC is easy to handle and based on practical requirements. ISCC is continuously improving• After recognition with BLE, ISCC applied for EC recognition. Extension to other markets (chemical, food, feed) ongoing• Harmonisation on EC level needed. Several issues still not clarified (e.g. how to handle missing NUTS2 values, definition of wastes/ production residues). Has to be done urgently otherwise market players and international trade will suffer Sustainability certification shows impact: Farmers start to change their agricultural practices (e.g. better storage and handling of plant protection products, start documentation) Financial institutions request sustainability proof prior to financing new agricultural projects Companies in other markets follow and start to request proof of sustainability Spatial planners interested in considering biodiversity and carbon stocks in their planning 24!