Biofuel policies in the EU: challenges and
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1 Biofuel policies in the EU: challenges and opportunities for Colombia June Bart Dehue b.dehue@ecofys.nl Leen Kuiper L.kuiper@ecofys.nl
2 Biofuel targets Existing biofuel targets for all EU countries 5.75 % in 2010 New biofuel policies under development Renewable Energy Directive Proposed biofuel target: 10% in 2020 Fuel Quality Directive 10% GHG reduction of transport fuel -> Only sustainable biofuels count towards targets
3 Why is biofuel sustainability an issue in EU? Land needed for 10% biodiesel EU-27 Rapeseed: 4 * Soya: 10 * Palm oil: 1 1/3 * -> Biodiversity -> Land right conflicts -> GHG emissions from LUC
4 Why is biofuel sustainability an issue in EU? If produced unsustainable, biofuels can emit more GHG than fossil fuels Without deforestation With deforestation GHG emissions [% of reference] 780.0% 760.0% 120.0% 724.5% 740.0% 720.0% 700.0% 680.0% 100% 660.0% 640.0% 100.0% 620.0% 600.0% 580.0% 560.0% 540.0% 520.0% 500.0% 80.0% 480.0% 460.0% 440.0% 420.0% 400.0% 380.0% 60.0% 360.0% 340.0% 320.0% 300.0% 280.0% 260.0% 240.0% 40.0% 32.4% 220.0% 200.0% 180.0% 160.0% 140.0% 100% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Biodiesel from Soybeans Reference: Diesel (Draft Dutch CO2-tool)
5 Overview main biofuel sustainability issues in current policy debates Environmental 1. GHG performance / Carbon storage 2. Biodiversity (LUC) 3. Soil quality 4. Water quality and quantity 5. Air pollution Social 6. Land rights 7. Labour conditions 1. Child labour 2. Forced labour 3. Health and Safety 4. Discrimination 5. Wages 6. Freedom of association 8. Competition with food
6 Status of biofuel sustainability policy in EU Today, only UK has sustainability requirements for biofuels UK covers wide range of environmental and social issues Info on: EC made proposals for sustainability criteria-> under discussion Regulation expected to be finished in 2008 Regulation expected to enter into force in 2010 Initial proposal covered only GHG and Biodiversity (LUC) Heavily criticized for being too weak Proposed amendments by EP cover more criteria Outcome is still uncertain
7 What do the sustainability requirements mean for biofuel producers? 1. Feedstock must be from certified plantation 2. Information on process is used to determine GHG balance 3. Traceability of information through supply chain
8 Meta-Standard approach Use existing standards Credible Do not reinvent the wheel Market acceptance Producers involved Cost-effective No double certification Benchmark Sustainability criteria Audit quality
9 Challenge for the market Limited availability of certified feedstock in short term Good opportunities for certified sustainable producers SAI Basel SAN /RA FSC Cover Criteria RSPO LEAF EurepGAP ACCS Cover current biofuel crops
10 Default GHG balance for different biofuels (UK system) Net total 90 0% Land use change 80 10% For PO: RPO refining GHG performance [kg CO2e / GJ fuel] RSO (UK) 36% SBO (Brazil) 48% PO (Malaysia) UCO & Tallow 85% Jatropha Oil 66% Diesel 7 - Liquid fuel transport and storage 6 - Conversion (esterification) 5 - Oil transport 4 - Conversion (crushing) 3 - Feedstock transport 2 - Drying and storage 1 - Crop production
11 Different default values per country CO2/MJ Australia Canada Finland France Germany Poland Ukraine UK Argentina Brazil USA Malaysia Indonesia UK Oilseed rape Soy Palm UCO Tallow
12 Main discussion in EU on indirect LUC What is it? EP proposed GHG penalty for Forest B Indirect landuse change feedstock from existing plantations. Direct landuse change A C Existing Plantations (X) B Idle land Sustainable biofuel production -> benefit for newly established plantations on idle land. -> importance of mapping of new go areas Indirect LUC = uncontrolled LUC
13 Conclusions for Colombia Certification Certification of feedstock important for access to EU biofuel market -> Need for accepted sustainability standards (e.g. RSPO) Even if EU law requires only few criteria, European fuel companies may still require comprehensive criteria -> Be prepared: include comprehensive criteria Do not reinvent the wheel: use existing standards (RSPO etc) Biofuel with better GHG balance may obtain higher value Palm oil and sugar cane have good GHG potential In performing LCA, use internationally accepted methodology New plantations on idle land have no indirect LUC Identify go-areas for sustainable expansion
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