Sustainability Criteria For International Trade in Wood Pellets Dana Collins – Bioeconomy Programs Specialist (CIF-IFC) Tat Smith – University of Toronto

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  • Sustainability Criteria For International Trade in Wood Pellets Dana Collins Bioeconomy Programs Specialist (CIF-IFC) Tat Smith University of Toronto & CIF-IFC President
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  • Outline Drivers for Forest Bioenergy Outcomes of European Climate Mitigation and Bioenergy Policies Sustainability Governance Standards, Policies and Certification Implications of Multiple Levels of Governance on Forest Management and Trade The Role of IEA Bioenergy Task 43 and the Canadian Institute of Forestry Recommendations and Take-Home Questions 2
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  • Drivers For Forest Bioenergy Climate Change Diversification of forest sector Reduce forest stresses Bioeconomy opportunities Value for ecological services 3
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  • Indicators of a Changing Global Climate http://www.climatechange2013.org/ 4
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  • What Role Can Forests Play? In the long term, sustainable forest management strategies aimed at maintaining or increasing forest carbon stocks, while producing a sustained yield of timber, fibre, or energy from the forest, will generate the largest sustained mitigation benefit. IPCC 2007 ch 9: Forestry, AR4, Group III 5
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  • Major opportunities facing NA forest Sector: Develop renewable energy sector Realize benefits to economy, environment and society Martin Holmer, 2001 6
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  • What Technologies will Attract Capital? Source: FPAC 2010. 7
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  • GHG Reduction Strategies Need a global 50% CO2 cut by 2050 Various technologies are needed to reduce energy-related CO2 emissions EU has tackled this challenge with substantial goals Source: OECD/IEA 2010 8
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  • Outline Drivers for Forest Bioenergy Outcomes of European Climate Mitigation and Bioenergy Policies Sustainability Governance Standards, Policies and Certification Implications of Multiple Levels of Governance on Forest Management and Trade The Role of IEA Bioenergy Task 43 and the Canadian Institute of Forestry Recommendations and Take-Home Questions 9
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  • Increased Demand Brings New Challenges & Opportunities Current bioenergy Modern bioenergy: 10-15 EJ/year Total bioenergy: 50 EJ/year Deployment level of IPCC scenarios by 2050 440-600 ppm CO 2 eq target: 80-150 EJ/year
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  • Wood Pellet Consumption in Europe Source: WPAC 11
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  • Increased Demand for Wood Pellets 12
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  • Traditional Forest Products Markets Dominate Bioenergy remains a marginal, residual (mill & harvest) assortment 13
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  • Total Volume and Source of Forest Energy Must Change Black liquor, Pine oil > 35 TWh Chipwood 1 TWh Residues 4.4 TWh 0.7 TWh Thinning By-products 5 TWh ~ 3 TWh Imports < 5 TWh Recycled wood Forest sector > 50 TWh > 50 TWh Source: Bjrheden, 2004 14
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  • Outline Drivers for Forest Bioenergy Outcomes of European Climate Mitigation and Bioenergy Policies Sustainability Governance Standards, Policies and Certification Implications of Multiple Levels of Governance on Forest Management and Trade The Role of IEA Bioenergy Task 43 and the Canadian Institute of Forestry Recommendations and Take-Home Questions 15
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  • Relevant EU Legislation Emission Trading System (ETS) of 2005: Carbon cap-and-trade system for EU Biomass co-firing considered C-neutral 2013: adding aviation sector, introducing auctioning of allowances Criticisms: price of C is too low, biomass shouldnt be considered C-neutral Energy Efficiency Directive (2011): Encourages CHP and district heating, could stimulate an increased demand for pellets Member States must develop heating and cooling plans, set energy efficiency targets by 2014 16
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  • Relevant EU Legislation EU (Illegal) Timber Regulation: Enters into effect in 2013 Prohibits illegal wood and wood products from entering EU markets May influence where pellets are sourced from Renewable Energy Directive (RED) of 2009: To enable the EU to reach 20/20/20 goals Mandatory RE targets for all Member States Member States must have Action Plans (NREAPs), outlining strategy 17
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  • Origins of Sustainability Criteria in the Forestry Sector 1987: Brundtland Report In 1987, the World Commission on Environment and Development (WCED), which had been set up in 1983, published a report entitled Our common future. The document came to be known as the Brundtland Report after the Commission's chairwoman, Gro Harlem Brundtland. It developed guiding principles for sustainable development as it is generally understood today. The Brundtland Report stated that critical global environmental problems were primarily the result of the enormous poverty of the South and the non-sustainable patterns of consumption and production in the North. It called for a strategy that united development and the environment described by the now-common term sustainable development. Sustainable development is defined as follows: Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. http://www.are.admin.ch/are/en/nachhaltig/international_uno/unterseite02330//
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  • http://unfccc.int/files/press/releases/application/pdf/pressrel200802.pdf Major events: Earth Summit in Rio de Janeiro, 1992 Kyoto Protocol, 1997 Clean Development Mechanisms, Johannesburg, SA, 2002 Origins of Sustainability Criteria in the Forestry Sector
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  • The member countries represent about 90 per cent of the world's temperate and boreal forests in the northern and southern hemispheres. This amounts to 60 per cent of all of the forests of the world. (Note: Europe's forests are not included - they are being addressed by the Helsinki or Pan-European Process.) http://www.mpci.org/ Origins of Sustainability Criteria in the Forestry Sector
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  • Source: Rametsteiner and Simula 2003 Origins of Sustainability Criteria in the Forestry Sector Countries participating in international processes defining C&I for sustainable forest management
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  • Voluntary certification schemes Forest Stewardship Council (FSC) Canadian Standards Association (CSA) - now within PEFC Sustainable Forest Initiative (SFI) - now within PEFC ISO 14000 Origins of Sustainability Criteria in the Forestry Sector
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  • Growth in Certified Forest Area (million ha) http://www.grid.unep.ch/ 23
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  • 24 Pelkmans et al. 2014
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  • Some considered more important than others International SFM processes International conventions StandardsLegislation 25 Stupak et al. 2012
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  • Outline 26 Drivers for Forest Bioenergy Outcomes of European Climate Mitigation and Bioenergy Policies Sustainability Governance Standards, Policies and Certification Implications of Multiple Levels of Governance on Forest Management and Trade The Role of IEA Bioenergy Task 43 and the Canadian Institute of Forestry Recommendations and Take-Home Questions
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  • Implications of Multiple Levels of Governance Rapid global proliferation of certification systems Diverse approaches to standards Diverse approaches to assessments (audits and reporting) Potential for consumer confusion Potential impacts on trade Potential failure to achieve sustainability goals Need for harmonization 27 J. van Dam et al. 2010
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  • The role of certification? Q9 Q12 Q15 28 Stupak et al. 2012
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  • Effectiveness of Scheme Support Measures to Alternatives to Certification? 29 Stupak et al. 2012
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  • Is Redundancy a Problem? If yes, which problems.? > 50% said -- clear advantages to keeping the diversity of schemes and initiatives 30 Stupak et al. 2012
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  • Multiple Levels of Governance Graphics: Jessica Murray, University of Toronto. Adapted from: Kittler et al. 2012 31
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  • Outline 32 Drivers for Forest Bioenergy Outcomes of European Climate Mitigation and Bioenergy Policies Sustainability Governance Standards, Policies and Certification Implications of Multiple Levels of Governance on Forest Management and Trade The Role of IEA Bioenergy Task 43 and the Canadian Institute of Forestry Recommendations and Take-Home Questions
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  • IEA Bioenergy Task 43: Biomass Feedstocks for Energy Markets Task 43 will address issues critical to mobilizing sustainable bioenergy supply chains, including biomass markets and the social, economic and environmental consequences of feedstock production and supply The objective is to promote sound bioenergy development that is driven by well-informed decisions in business, governments and elsewhere. 33
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  • . IEA Bioenergy inter-Task Strategic Project Mobilising Sustainable Bioenergy Supply Chains The overall objective for 2013-15 period is to enhance the mobilization of sustainable bioenergy supply chains globally. necessary elements of a successful and sustainable bioenergy supply chainIdentification of the necessary elements of a successful and sustainable bioenergy supply chain. new and existing frameworks that seek to understand and explain the underpinning elements that contribute to sustainable supply chainsDevelop new and existing frameworks that seek to understand and explain the underpinning elements that contribute to sustainable supply chains. Include elements of availability of feedstock, applicable conversion processes, GHG balances, land use issues, governance mechanisms and other aspects of bioenergy production and supply. Integration across complex systemsIntegration across complex systems which leads to transfer of knowledge to new and upcoming bioenergy technologies or feedstocks in different regions of the world. 34
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  • Task 43 Provides a Platform for Increased Dialogue on Sustainability Savannah, GA Workshop. A two day event with 60 participants from 9 countries. Diverse interests represented. Quebec workshop. Two day event with participants from 11 countries http://www.ieabioener gytask43.org/task-43- events-2/ 35
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  • Canadian Institute of Forestrys Role CIF has assumed responsibility for Canadas involvement in IEA Bioenergy Task 43 for the triennium 2013-2015 Support from: Ontario Power Generation, British Columbia Ministry of Forests, Lands and Natural Resource Operations (Competitiveness and Innovations Branch), Canadian Council of Forest Ministers (Forest in Mind Program), Alberta Innovates Bio Solutions 36
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  • CIF Knowledge Exchange Publications in The Forestry Chronicle Presentations, Lectures and Conferences Integration of Task 43 work into other CIF-SEEK biomass projects 37
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  • Outline 38 Drivers for Forest Bioenergy Outcomes of European Climate Mitigation and Bioenergy Policies Sustainability Governance Standards, Policies and Certification Implications of Multiple Levels of Governance on Forest Management and Trade The Role of IEA Bioenergy Task 43 and the Canadian Institute of Forestry Recommendations and Take-Home Questions
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  • Recommendations Trans-Atlantic dialogue is needed to resolve conflicts in policies and unintended consequences. Opportunities exist to engage actors globally involved with policy formulation and development and deployment of bioenergy supply chains from Canadian forests to European and Asian bioenergy consumers. Researchers, foresters, and policy makers must work closely so that policy is science-informed and critical gaps in knowledge regarding sustainability criteria of forest bioenergy supply chains are filled. Canadian participation comes at a critical time. Without a Canadian context in Task 43, we risk forgoing valuable inputs and perspectives as one of the most globally significant pellet exporters. Note importance of participatory processes for policy to be considered legitimate and reflecting stakeholder values 39
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  • Key Questions Remain What is the state of knowledge regarding site-specific and global effects of international bioenergy supply chains on SFM & GHG emission reductions? Is policy adequately informed by the scientific state-of-art? How well does the existing mix of governance mechanisms achieve SFM, GHG emission reductions, and reliable labelling of sustainable products in the market place? Is international supply chain governance robust and fair? Should we be concerned about potential trade disputes? What process is required to improve governance? 40
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  • Thank you! Questions..? Dana Collins [email protected] Tat Smith [email protected]