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Environment and trasnport_nusa_urbancic_22_marzo
The document discusses the indirect land use change (ILUC) problem caused by biofuel production and policies to address it. It proposes limiting the contribution of biofuels from food crops to 5% and including science-based ILUC factors. Existing investments in biofuels could be grandfathered in while phasing out high-ILUC biofuels after 2017. This would balance environmental effectiveness with fair treatment of past investments. Meeting renewable energy targets would require reducing energy demand, using renewable electricity in transport, and producing biofuels only from wastes and residues.
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Environment and trasnport_nusa_urbancic_22_marzo
- 1. www.transportenvironment.org Nusa Urbancic,T&E How tofix the ILUC problem once and for all?
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- 3. www.transportenvironment.org Policy in theEU • 10% binding target for renewables in transport (RED) and 20% overall target • 6% carbon reduction target for transport fuels (FQD) • ‘Sustainability criteria’ still do not include indirect effects (ILUC)
- 4. www.transportenvironment.org Use of biofuelsuntil 2020Development of renewable energy in transport in EU 27 0 5000 10000 15000 20000 25000 30000 35000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ktoe 2nd generation Hydrogen Other Biofuels Electricity in transport Bioethanol Biodiesel Biodiesel Bioethanol
- 5. www.transportenvironment.org Proposed reform • Limitcontribution of biofuels from food crops to 5% • Include ILUC factors, but only for reporting • Introduce 2 and 4-times accounting for advanced biofuels Currently under discussion in the EU!
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- 8. www.transportenvironment.org ILUC is real •Six studies for the Commission and numerous other scientific reports “We urge you to align the EU biofuels policy with the best scientific knowledge and take into account emissions from indirect changes in land use.” Union of Concerned Scientists letter to Barroso Signed by 210 scientists and researchers
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- 11. www.transportenvironment.org EU biofuels policydriving deforestation Speculators clear land in hopes of selling to palm companies operating in their area; often, palm companies don’t buy and land is abandoned and degraded Source: UCS 2011, Elson 2011 Palm production by country
- 12. www.transportenvironment.org And costing alot of money • Without any action on ILUC CO2 savings maybe 5% • Abatement cost = €2500 /tonne CO2 • Price of carbon in the ETS = 4.5 EUR/tonne CO2 • Public subsidies to biofuels industry in the EU 11 billion USD (IEA 2011) Source: ICCT
- 13. www.transportenvironment.org Biofuels in Spain •Mostly biodiesel – no GHG savings • Capacity utilization for biodiesel only 23% (the lowest in the EU) • Imports of biodiesel amount to 89% • Spanish government opposed to the EU reform to limit biofuels to 5% • Wants to protect existing investment
- 14. www.transportenvironment.org What to dowith existing investments?
- 15. www.transportenvironment.org Our proposal • Science-based,feedstock-specific ILUC factors • Grandfathering caps biofuels at 5% and gradually phase out high-ILUC biofuels post 2017 • Ensures that only low ILUC biofuels are supported Combines environmental effectiveness and a clear framework for new low-carbon investment with fair treatment of past investment
- 16. www.transportenvironment.org How to meet10% target? • Reduce energy demand (15%) • Encourage renewable electricity in rail and road transport • Biofuels from true wastes and residues, i.e. municipal waste
- 17. www.transportenvironment.org How to meetthe target?
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- 21. www.transportenvironment.org Cost efficiency ofILUC options
Editor's Notes
- #3 ILUC. Four meaningless letters. This is what ILUC looks like.It’s a picture of deforestation in Indonesia caused by ever-increasing demand for palm oil. As Europe switches food crops to produce fuel, we are importing Palm Oil to fill the gap. Some biofuels cause this problem to a far greater extent than others. We have to push the market towards the best biofuels. Doing nothing is not an option.We believe that there is a solution to the political stalemate around ILUC. That’s what we want to share with you today.
- #8 Here’s what happens when you include ILUC. Changes the picture entirely.
- #12 Union of Concerned Scientists and Climate Advisers. “Recipes for Success: Solutions for Deforestation-free Vegetable Oils.” 2011. Elson, Dominic. “An economic case for tenure reform in Indonesia’s forests.” Rights and Resources Initiative, 2011 and Casson et al. “Strategies to Reduce Carbon Emissions from the Oil Palm Sector in Indonesia” UNFCCC.
- #15 BUT…we are facing a political stalemate…The Renewable energy directive contains a grandfathering clause.All installations in place at the end of 2013 would be exempted or ‘gradfathered’ until the end of 2017 as long as they meet an overall 45% GHG saving (iluc excluded)2 problems.Environmental:Because there is so much excess capacity in the sector, effectively all the biofuel production needed to meet the 10% target would be grandfathered. That would be environmentally disastrous, causing an additional area of land the size of Ireland to be cleared.Political:European biodiesel likely to be severely hit when grandfathering clause ends.Though, on principal, we don’t like any measure that allows environmental damage to continue, we recognise that some form of grandfathering will take place. We commissioned the research from Ecofys to try and move the debate forward and find the smartest ways of doing it.