EU Policy for Biofuels Dr Mairi J Black (Dr Jeremy Woods) Federation of Latin American Chemical Societies Meeting Biofuels and Bio-based Products Chemistry and Environmental Impacts Symposium Puerto Rico Convention Center, 29 th July 2008
EU Policy for Biofuels: Overview EU Policy Objectives and Targets EU Biofuels Sustainability Requirements UK Renewable Transport Fuels Obligation (the RTFO) UK Renewable Fuels Agency Gallagher Review The Future for Biofuels
Principle Objectives of EU Biofuels Policy Environmental - Greenhouse Gas Saving Energy - Security of supply Social - Employment, rural development Objectives addressed by different EU Directorates: Directorate-General for Environment (DG-Environment) - Reduction of harmful atmospheric emissions (including GHGs) from transport fuels Directorate-General for Transport and Energy (DG-Tren) - Promotion of Renewable Energies (including biofuels)
EU Biofuels Targets 1998 Fuel Quality Directive (1998/70/EC); revised 2003 (2003/17/EC) - to establish fuel specifications and reduce pollution from vehicle emissions for health and environmental benefits January 2007 Commission Proposal for Revision of Fuel Quality Directive - to reflect developments in fuel and engine technology - to help combat climate change by the promotion and development of lower carbon fuels (including biofuels) - to meet air quality objectives set out in the 2005 Clean Air Strategy and 2008 Air Quality Directive (2008/50/EC) Proposes: - Mandatory monitoring of lifecycle greenhouse gas emissions from fuels as of 2009 - Obligation for fuel suppliers to ensure a reduction in greenhouses gases from fuels throughout the lifecycle (production, transport and use) of 1% per annum between 2011 and 2020 (i.e. 10% by 2020)
EU Biofuels Targets 2003 Biofuels Directive (2003/30/EC) - required member states to set indicative targets for a minimum portion of biofuels to be set in the market (by energy) 2 % by 2005 5.75% by 2010 2007 Biofuels Progress Report for 2005 - biofuels reached only 1% of the market - Sweden and Germany were the only countries to reach the 2% target - 2010 target of 5.75% was unlikely to be met January 2008 review of 2003 Biofuels Directive (as part of the Proposal for the Directive for the Promotion of Renewable Energy (COM (2008) 19 final) - 20% EU energy from renewable sources by 2020 - within this target, 10% transport fuel requirements should be met from renewable sources
EU Member State Targets in 2006 Source: Paul Hodson (DG Tren), European Commission (2006) Presentation.
Biofuels Consumption in EU in 2006 (in MToe) Estimated biofuels consumption in EU-25 in 2006 bioethanol biodiesel other (totals in red figures) Total EU Biofuel consumption (1 ton bioethanol 0.64 Toe ; 1 ton biodiesel 0.86 Toe) 5.38 Mtoe in 2006 1.8% total transport fuel consumption (1% in 2005) Source: EurObser ER 2007 in Biofuels Barometer, May 2007
But what about Deforestation? Biodiversity loss? Ecosystem loss? Population displacement? Higher CO 2 outputs? Food price increases?
EU Biofuels Proposals for Sustainability To address biofuels issues within the Renewable Energy Directive Proposal, a public consultation generally supported the following: Land with high carbon stocks should not be converted for biofuel production Land with high biodiversity should not be converted for biofuel production Biofuels should achieve a minimum level of greenhouse gas saving (carbon stock losses would not be included in the calculation) Furthermore, The Commission should analyse the requirement for a sustainability scheme for energy uses of biomass (other than biofuel and bioliquid) by 2010 Biofuels and bioliquids which do not fulfil the sustainability credentials will not be considered as renewable.
UK Renewable Transport Fuel Obligation The UK Renewable Transport Fuel Obligation (the RTFO) requires suppliers of fossil fuels to ensure that a specified % of the road fuel supplied in the UK is made up of renewable fuels. The RTFO requires companies to submit reports on carbon emissions and sustainability of biofuels. (Renewable Fuels Agency 2008) Commenced April 2008 Renewable fuel inclusion targets 2008 2009 2.5% 2009 2010 3.9% 2010 2011 5.25% Currently no reward for carbon and sustainability reporting (anticipated that carbon benefit will be rewarded from 2010 and sustainability benefits, from 2011) Buy-out option for non-inclusion of renewable fuel Reporting framework provides a stepping stone towards a mandatory assurance scheme Administered by the Renewable Fuels Agency (RFA)
Carbon and GHG in Bioethanol Cycle ATMOSPHERIC CO CO 2 2 GHGs GHGs CO 2 Capture by Photosynthesis - crop growth - CO 2 Release by End Use - combustion in vehicles - Leakage? Other Inputs e.g. water Fossil inputs GHGs Fossil Energy GHGs CO 2 Gas Markets Carbon Capture & Sequestration Ethanol Co-products Other Inputs e.g. water Fossil inputs
UK RTFO Carbon Reporting GHG / Carbon calculations Current methodologies are supply chain specific (ethanol from sugarcane, sugar beet, molasses, wheat and corn; FAME from tallow, used cooking oil, soy, palm, oilseed rape; biomethane from anaerobic digestion of MSW and manure; ethanol converted to ETBE) On-going debate on methodologies used Land use change issues unresolved (Gallagher Review) Data may available and accessible for large scale commodity crops Default values can be extremely broad where data not available GHG and lifecycle analysis will improve
Supply Chain and Boundary Issues Alternative land use Assessed ex post by RTFO Administrator Previous land use Cultivation & harvest Waste material Boundary for monthly carbon intensity calculation Feedstock transport Biofuel production Biofuel transport Biofuel use Alternative waste management Excludes minor sources, from: Manufacture of machinery or equipment PFCs, HFCs, SF 6 Assessed separately Fossil fuel reference system E4Tech, 2007 Changes at one point in the supply and use chain have implications for other segments of the chain
UK RTFO - Sustainability Reporting Environmental Principles - Feedstock Production will not destroy or damage large above or below ground carbon stocks will not lead to the destruction or damage to high biodiversity areas does not lead to soil degradation does not lead to the contamination or depletion of water sources does not lead to air pollution Social Principles Feedstock and Biofuel Production does not adversely affect workers rights and working relationships does not adversely affect existing land rights and community relations
UK RTFO Update: The Gallagher Review On-going concerns about biofuel sustainability have led to a UK governmental review on the Indirect Effects on Biofuels The Gallagher Review. Focussed on recent evidence on the indirect or displacement impacts of biofuel production, both within the EU and Internationally Using current and future demand and production scenarios, evaluated - the extent to which production of biofuel feedstock leads to land conversion - GHG-emissions arising from changes in land-use change and cultivation practices Case studies examined evidence concerning - global drivers, pressures and land availability and the effect of current and future demand and production scenarios of biofuels - Uncertainties in science and methodologies of GHG calculations - Drivers of rising food commodity prices and effects on food security
Gallagher Review - Key Findings The Gallagher Review was published on 7 th July 2008. The Executive summary states the following: A slowdown in the growth of biofuels is needed There is probably sufficient land for food, feed and biofuels, Biofuels production must target idle and marginal land and use of wastes and residues Specific incentives must stimulate advanced technology Biofuels contribute to rising food prices that adversely affect the poorest A genuinely sustainable industry is possible Lower targets and stronger controls are needed Stronger, enforced global policies are needed to prevent deforestation
The Future for Biofuels Recommendations for the RTFO for biofuel inclusion in the transport fuel mix are now - 2.5% target should remain for 2008 but thereafter, only increase target by 0.5% per annum to a maximum of 5% (by volume) in 2013 EU Renewable Energy Directive is currently going through the political process to evaluate the 10% renewable transport fuel target for 2020 On-going methodological improvements will continue to support the debate - GHG calculations (default values) - Crop co-product value and allocation - Land use change / land use potential (Agro-ecological zoning work currently being carried out in India and Brazil) Advanced technologies for liquid biofuel production offer new opportunities both for feedstock and fuel types
Drivers and Obstacles for Biofuels Global / Regional Energy Security Food Security Climate Change Rural Development Local / Consumer Usability / reliability Environment / health [inc air quality] Cost Sustainability
Thanks to the Royal Society of Chemistry and the British Embassy, US for supporting attendance at this conference. Contact: Dr Mairi J Black Porter Alliance Centre for Environmental Policy Imperial College London London SW7 2AZ m.black@imperial.ac.uk www.porteralliance.org.uk Federation of Latin American Chemical Societies Meeting Biofuels and Bio-based Products Chemistry and Environmental Impacts Symposium Puerto Rico Convention Center, 29 th July 2008