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Socio-economic aspects of biofuels production – what are the concerns in Europe?

Semida Silveira Professor, PhD, head of division Energy and Climate Studies Coordinator of KTH Strategic Platform for Energy and Climate

II Workshop on the Impact of New Technologies on the Sustainability of Sugarcane/Bioethanol Production Cycle Campinas, 11-12 November 2009

semida.silveira@energy.kth.se

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  bioenergy (among renewables) in the EU   sustainability criteria - environmental x social preocupations in perspective   the global development agenda   tasks for CTBE

Socio-economic aspects of biofuels production – what are the concerns in Europe?

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Ambitious goals in the EU define new market conditions

2020 20% 20%

20%

20% more energy efficiency 20% renewable energy

At least 20% less ghg emissions 30% if a global agreement is reached

10% renewables in transport at least 14% of bio-energy in the total mix in 2020

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Renewables for EU 27, 2000 and 2005 and national targets for 2020

Source: Eurostat, Swedish Energy Agency

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Public sector energy R&D IEA countries from 1974 to 2006

Source: IEA 2008, in support to G8 plan of action

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Global new investment in clean energy technology by asset class, 2004-2007

Source: New Energy Finance

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Global new investment by technology 2007

Source: New Energy Finance

Public markets new investments

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•  2001: In the “Communication on alternative fuels for road transport” the European Commission identifies i.a. biofuels as potential future transport fuel

•  2003: The EU adopts the Biofuels Directive (2003/30 EC ). Targets: 2% in 2005; 5.75% in 2010

•  2003: Energy taxation Directive (2003/96 EC) allows de-taxation of biofuels

•  2005: EC presents “Biomass Action Plan”

•  2006: EC presents “An EU strategy for biofuels” prepares revision of the Biofuels Directive 2003/30 EC

•  2007: “Road Map for Renewable Energy in Europe”

•  2010: Deadline for National Action Plans

Biofuel policy development in the EU

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The role of biofuels in the EU

•  Increased security of supply

•  Reduction of greenhouse gases

•  Reduction of oil dependency

•  Sustainable development

•  Rural revitalization

•  Competitiveness

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! Ethanol one option among others in EU !

•  EU is evaluating various alternatives Ethanol and biodiesel Gas / biogas Electricity

•  Strong focus on what EU can do internally to increase supply security

•  EU pushing for technological development to increase its competitiveness

•  Plan for 15 pilot/demo plants to accelerate biofuel development (SET Plan)

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•  StrategicEnergyTechnologyPlan (COM(2007) 723 final)= strategicplantoacceleratethedevelopmentanddeploymentofcost‐effec7velowcarbontechnologies

•  Communica5ononInves5nginthedevelopmentoflowCarbonTechnologies (COM(2009) 519 Final) = explainswhatweneedtofinanceandhowmuchitwillcost

•  TechnologyRoadmaps (SEC(2009) 1295) = wri=eninconsulta7onwithstakeholdersandmeanttoguidetheimplementa7onoftheEuropeanIndustrialIni7a7ves

The SET-Plan in the EU

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•  Industrialsectorobjec5ve:

To ensure at least 14% bioenergy in the EU energy mix by 2020, and guarantee GHG emission savings of 60% for bio-fuels and bio-liquids under the sustainability criteria of the new RES directive

Bring to commercial maturity the currently most promising technologies and value-chains, in order to promote large-scale, sustainable production of advanced biofuels and highly efficient heat & power from biomass.

The technology roadmap for bioenergy

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Ac5ons CostM€

1.Op7misa7onofthemostpromisingvaluechainsviathermo‐chemicalandbiochemicalpathways=>collabora7veprogrammeofdemonstra7onandfirst‐of‐this‐kindindustrial‐sizeplants

7900

2.Supportac7vi7esonbiomassfeedstockassessment,produc7on,managementandharves7ngforenergypurposes

600

3.Iden7fica7onanddevelopmentofnewvaluechains

400

TOTAL 9000

The technology roadmap for bioenergy

Cooperation with Brazil being contemplated but not specified

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Growing concerns about sustainability in the up-scaling of bioenergy use

•  Sustainable biomass production

•  Replacement of tropical rainforest by energy crop plantations

•  Greenhouse gas emissions from biomass producing and processing

•  Social issues i.e. land rights and labour conditions

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•  Deforestation

•  Greenhouse gas emissions

•  Pressure on natural resources

•  Destruction of eco-systems and their services

•  Competition with food production

•  Social conditions in areas of biofuel production

→ Formation of global markets for biofuels → increased production of biofuels (scaling up) → social and environmental concerns → new views about impacts (direct and indirect)

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•  Cramer Commission (NL)

•  Round Table on Responsible Soy Association (RTRS, AR) •  Better Sugar Initiative (BR)

•  Renewable Transport Fuel Obligation (RTFO, UK)

•  Roundtable for sustainable biofuels (RSB, CH)

•  German draft biomass sustainability regulation / ISCC (DE)

•  Roundtable on sustainable Palm oil (RSPO, MY) •  INMETRO (BR)

•  SEKAB / UNICA (SE, BR)

•  Mozambique Govt., GTZ-ProBEC

Initiatives on biofuels sustainability (examples)

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Roundtable table on sustainable biofuels

•  Farmers and growers of biofuel feedstocks •  Industrial biofuel producers •  Retailers/blenders & the transportation industry •  Banks/investors •  Rights-based NGOs (incl land, water, human, and labour rights) •  Rural development and food security organisations •  Environment and conservation organisations •  Climate change and policy organisations •  Trade unions •  Smallholder farmer org and indigenous peoples' org/ community-based civil

society organizations •  Intergovernmental organizations (IGOs), governments, standard-setters,

specialist advisory agencies, certification agencies, and consultant experts

international initiative bringing together stakeholder concerned with ensuring the sustainability of biofuels production and processing

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Criticism: poor developing countries as sources of:

•  Cheap land (assuming plentiful availability)

•  Cheap labour (therefore inexpensive to implement measures)

•  Suitable climate conditions (assuming large water availability)

•  Weak legislation and regulations (assumes rapid decisions)

Criticism of Ian Bryceson and other researchers

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Biofuels and neo-colonialism

Source: Prof. Seif Maliondo, Prof. Salim Madoffe, Dr. Faustin Maganga, Dr. Elifuraha Mtalo, Dr. Fred Midtgaard and Prof. Ian Bryceson

“Eco-friendly” ethanol fuel for big 4WD Volvos and racy Saabs in Sweden that replaces Tanzanian coastal forests with Swedish-owned sugar plantations, that consumes huge quantities of scarce water, that pollutes soil and coral reefs, that violates the traditional land-rights of poor people and threatens their food security. This is indeed violation of human rights, or else what should we label this?

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A number of studies address land grabbing in Africa

Kenya: Munguti (2008), Mathenge (2009)

Madagascar: Jung-a et al. (2008), Olivier (2008), Hervieu (2009)

Mozambique: AIM (2007), IRIN (2007), Cotula(2008)

Sudan: Hazaimeh (2008), Rice (2008)

Tanzania: ABN (2007), Haki Ardhi (2008), Sulle (2009), Madoffe et al. (2009), Benjaminsen & Bryceson (2009), Benjaminsen et al. (2009)

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Land-grabbing for biofuel plantations in Africa the concern of international organisations

• ABN (2007). Agrofuels in Africa. 36 pages. • FAO (2008). Biofuels: prospects, risks and opportunities. 138 pages. • GRAIN (2007). Agrofuels special issue. 60 pages. • IFG & IPS (2007). The false promise of biofuels. 35 pages. • IIED (2008). Fuelling exclusion? The biofuels boom and poor people’s access to land. 82 pages. • IIED (2009). Land grab or development opportunity? 130 pages. • IFPRI (2009). Land grabbing by foreign investors in developing countries: risks and opportunities. 4 pages. • Oxfam (2008). Another inconvenient truth: how biofuel policies are deepening poverty and accelerating climate change. 58 pages. • Sida SwedBio (2009). Biofuels – potentials and challenges for developing countries. 4 pages.

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ISEAL Alliance

•  International Federation of Organic Agriculture Movements (IFOAM) •  Forest Stewardship Council (FSC) •  Marine Aquarium Council (MAC) •  Marine Stewardship Council (MSC) •  SAN Rainforest Alliance (RA) •  Social Accountability International (SAI) •  Fairtrade Labelling Organisation (FLO)

supports credible standards and conformity assessment by promoting credible voluntary social and environmental certification as a policy instrument in global trade and development.

revised code is expected to be launched in 2010

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The role of “fair trade” certification

•  Guarantees minimum prices somewhat above global market prices

•  New Swedish report claims little is achieved for farmers

•  Can work in small scale in nisch markets / difficult to apply at large scales

•  Better productivity in agriculture gives more results in alleviating poverty

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Sustainability criteria being put in place in the EU

•  Environmental impacts along supply chains

•  Greenhouse gas emissions

•  Land availability and change of energy use

•  Competition for resources (land, water…)

•  Market competition

•  Food production X biofuel production

•  Impact on developing countries’ economies

Directive on sustainability related to promotion of energy use from renewable sources (2009/28/EG)

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The sustainability criteria in the EU

•  Rules in the directive are comprehensive and detailed

•  Criteria described are rich in methods for accountability and verification

•  Shall apply to biofuels for transport and other energy uses in the beginning

Etanol, RME, biogas for transport

Talloil, bio-oils (i.e. palm oil, rapseed oil)

•  Work in progress in the member countries to put all in place in 2010 but a lot of completion is still necessary

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When/why shall the criteria of the directive be met?

1.  To be counted in binding national targets 2.  To be counted as renewable energy

green certificate scheme, etc

3.  To receive any type of support subsidies, tax incentives, etc

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Directive criteria application

•  Reduction of greenhouse gases: 35% to start

•  Protection of areas of high biological diversity (forests, natural reserves, other special eco-systems)

•  Protection of areas rich in carbon stocks (wetlands, reforested areas, peat land)

•  Economic agents to meet criteria (mass balance)

•  External evaluation

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What is development?

”What has been happening to poverty? What has been happening to unemployment?

What has been happening to inequality? If all of these have declined,

then there has been development."

(Seers, 1977)

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What is sustainable development?

”a development strategy that manages all assets, natural resources, and human

resources, as well as financial and physical assets, for increasing long-term wealth and

well-being"

(Repetto, 1986)

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The gap

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CO2 emissions per capita

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Differentiating cooperation with developing countries

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Clean energy incubators by country 2007

Note: Excludes China

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Sizing the bioenergy potential through a systems perspective

Biomass sources Forest residues Agriculture residues Energy crops Waste

Conversion technology CHP (co-generation) Integration with other production systems Biofuels for transport Heat / cooling

End - uses Biofuels for transport Electricity Refrigeration Heat

DEMAND MARKETS Local Regional International

LOCAL POTENTIAL Natural conditions Know-how Priorities

Collection/processing Road/railroad systems Storage Industrial synergy

Logistics / infrastructure Distribution District cooling / heating Road / railroad systems Ports

POLICIES AND INSTITUTIONAL FRAMEWORK FOR BIOENERGY DEVELOPMENT Logistics / infrastructure

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Summarizing: context of biofuels in EU

•  Biomass is the largest renewable in EU (65-70%) but other alternatives are growing more rapidly

•  Biomass resources being considered in various production and use chains (broad treatment of bioenergy potential)

•  Credibility and acceptance of bioenergy needs to be restored among the general public

•  EU sees bioenergy as an opportunity to restructure agriculture policy

•  corporate responsibility still to be further explored – potential hidden due to concerns on competitiveness

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Summarizing: concerns on biofuels in EU

•  Pushing for technological development (SET plan)

•  Focus on environmental impacts in sust criteria greenhouse gas reductions land use change eco-systems interference biological invasion

•  Public debate on social dimensions of expansion of biomass utilization (dispersed)

•  Social issues being dealt in certification schemes (i.e fair trade, ISO) and various sustainability criteria

•  Corporate responsibility increasing in context of climate change and labour issues

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  take leadership in development debate in context of bioenergy opportunities for enhancing modern energy access   assume key role in capacity building for realizing the bioenergy potential in developing countries   consider whole production chain when addressing sustainability highlighting environmental, social and economic analysis

Ultimate goals to be pursued by CTBE (related to socio-economic concerns)

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  strong and high-qualified research with high output in the form of international publications   cooperation with international groups not least in other developing countries   development of methodologies defining criteria and parameters with broad relevance for biomass production and use   databases   indicators for monitoring change and sustainability   scenarios (beyond Brazil)   policy analysis for active input in various international fora

Instruments for achieving objectives

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Obrigada pela atenção!