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PRIVATE CERTIFICATION:
STRENGTHS, WEAKNESSES
AND POTENTIAL ROLE IN
BIOENERGY IMPACT
GOVERNANCEGOVERNANCE
1
Kevin Fingerman
Global Bioenergy Partnership (GBEP)
Food and Agriculture Organization of the United Nations
Bogor, Indonesia – 12/11/2012
Sneak Preview…
• Concerns with biofuels
• What governments can/can’t regulate (WTO)
• Why producers certify
• Strengths of certification
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• Strengths of certification
• Weaknesses of certification
• What governments can do…
Biofuels – concerns
– GHGs – LCA, direct and indirect LUC
– Biodiversity loss
– Soil loss
– Water use/pollution
– Air pollution
– Food security– Food security
– Labor issues
– Land rights issues.
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�Why not just make a law that says “you can’t make biofuels this way here?”
So how to we take advantage of
potential while avoiding harm?
�Why not just make a law that says “you can’t sell biofuels made this way here?”
WTO – the elephant in the room
• Regulating between “like products”– PPMs
– Tuna-Dolphin is the classic example
• There’s evidence governments can regulate for life cycle GHGsgovernments can regulate for life cycle GHGs– Many are doing it already
• Anything that can be tied to GHGs probably works– EU is an example
• There’s a lot we can’t cover in mandatory regulations
Given this…what can we do?4
• Sustainable biofuels exist but are negatively overshadowed by the visibility of the poor performers.
• A credible set of rules (Standard) can be adhered to by companies to demonstrate biofuels deliver on their promise of sustainability
Certifying better biofuels
on their promise of sustainability
• Distinguish the best actors in the marketplace, incentivize improvement
• Open multi-stakeholder participation brings greater legitimacy and credibility.
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Why producers certify?
• Comply with import restrictions (e.g. EU RED)
• Distinguish a high-performing product
• Capture an otherwise unreachable market
• Capture a price premium• Capture a price premium
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Incentives vary• The “razor’s edge” of certification
• Conflicts between NGOs and corporations are the most obvious challenge
– Greenwash vs. Aspiration
– Creating a value proposition for business– Creating a value proposition for business
• Eco-minded consumers; B2B markets
• Management of operational and reputational risks
• Access to multiple regulated markets – one-stop shop
• Civil society groups can also have different priorities
– e.g. Social vs. environmental impacts – cane burning
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Strengths - Certification can work…
• U.S. Organic food and drink market
grew from $1 billion in 1990 to $24.8
billion in 2009 to 3.7% market share
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Weaknesses
• There’s evidence that people buy organic
products for private benefit.
– Market is limited
• Might not really ensure what we think/hope
• Could be over-aggressive to the point of • Could be over-aggressive to the point of
impracticality
• Profusion of standards
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What can governments do?
• Provide incentives
– Tax breaks, financing etc.
– Double counting (after E.U. model)
– Certify production from owned land
– Procurement– Procurement
– Uptake an official label
• Amplify impact of certifications
– Identify best actors, publish lists of certified
producers, etc.
• Benchmark to desired criteria
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THANK
YOU!!
11
Kevin Fingerman
Global Bioenergy Partnership (GBEP)
Food and Agriculture Organization of the United Nations
Bogor, Indonesia – 12/11/2012
