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PRESENTE PAR PHILIPPE NIYONGABO,CHEF DE DIVISION ENERGIE

COMMISSION DE L’UNION AFRICAINE

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Petroleum fuel faces acute peaking problems due to :

1.ever increasing demand in the face of dwindling production rate 2.instabilities in the centres of petroleum production,

Results = Huge swings in crude oil price affecting national and global economies.

Renewed interest in biofuel as an alternate sustainable fuel to augment energy-security and avert the associated environmental issues.

Biofuels are used for lighting and powering engines.

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Production and consumption of liquid biofuels for transport accounts for <4% of road transport fuels worldwide but growth rates and future potentials are significant.

Biofuels promotion in developing countries can assist achieve the Millennium Development Goals (MDGs) through poverty reduction, health impact and climate change.

Africa, having vast land, varieties of biofuels feedstocks, favourable climate for growing many of the energy crops and low labour cost ought to take advantage of this emerging industry and market.

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Enhancing rural economy through integrated bioenergy and agro-industrial development

decrease energy-security risks associated with crude oil importation by local production and consumption of biofuels;

Creation of numerous jobs from the farming to the marketing/exportation of products;

Sustainable and environmentally friendly pack of biofuels production methods;

improvement on the existing agricultural and forestry policies and practices;

Large scale mechanised farming through cooperatives; Well-directed R&D and other support systems with a focus on

developing new and good farming methods; see biofuels development as an agricultural promotion with an

energy-benefit; avoid becoming raw material producer for the biofuels industry; Successful pathways chartered by nations such as Brazil, USA,

India, etc.

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Challenges Ahead

1. Environmental Sustanability - Forest Depletion & Biodiversity Theat- Pollution- Land Utilisation

2. Social Sustainability - Job Creation- Rural Development- Food Security - Labour Issues - Land and Water Acces - Health - Fuel Burden

3. Economic Sustainability - Objectives of Proposed Biofuels Development Programme in

Africa

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Objectives of the First High-Level AUBrazil/UNIDO

Biofules Seminar in Africa

To brief policy makers, the private sector and regional institutions on the development of bio-fuels and their importance to Africa

To explore the possibilities of Biofuels in Africa while ensuring a balance between the potentials, risks and trade-offs of Biofuels

To bring together stakeholders in the Biofuel sector to develop a common strategic plan for the development of this new source of energy in Africa; and

To facilitate the development of viable policies and strategies on the Biofuels Industry in Africa

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Broad areas for assessment and development include the following:

1. Current Status and Plans in Africa for each of the sector sub-groups (e.g. biogas, biodiesel, bioethanol, gel fuels and gasification)

2. Trade and consumption issues, sustainability, potential risks and trade-offs

3. Costs and benefits of biofuels development4. Policy frameworks (Regulation, Investment and

Financing, Technology Transfer, Environment, etc)5. Roles of national governments, regional economic

communities, development partners and local as well as foreign private sector

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Deliberations are to aid in formulating sets strategic guidelines and policies in developing biofuels in Africa. Discussion of the challenges & benefits covers:Trade and Consumption Benefits

Biofuels trade is deemed modest currently but is growing rapidly with the increasing mandate usage in USA and the EU. Increasing Chinese demand for energy.Exportation of finished products considered cheaper than bulky biomass. Win-win opportunity to exporting & importing countries/regions. Tariffs and non-tariff measures – Distortion of international biofuels markets.Total biofuels use in Africa - Expected to remain smallPolicies targets - Domestic and the growing international biofuels market.

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2. Poverty Reduction

Biofuels industry has a huge employment potential & can increase the incomes of Africans thereby lifting them from the poverty trap.

Resources available for these are:

1. the vast land resources and 2. varied nature of the feedstocks3. favourable climate4. human resources

Biofuels market can aid farmers to earn better incomes for their produce due to the expanded market. However, tendency to start a vicious cycle of soaring prices of food and food products must be carefully analysed and avoided.

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3. Environmental Benefits

It is accepted that at least 13% per kilometre savings can be obtained using biofuels against fossil fuel (IEA, 2006).

Certificates and eco-labelling of biofuels and products based on robust internationally acceptable sustainable criteria could be good instruments.

The potential of reducing climate change via decrease in greenhouse gases (GHG) has to be assessed on the full life-cycle of the biofuel feedstocks.

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Common Policy for Africa coordinated by the AU, should be implemented and use RECs as mediums.

Initiatives that could boost development of the sector and advocated for establishment are:

1. African Biofuel Board, 2. Centres of Excellence and 3. Biofuel Fund for Africa.

Encourage African oil producing countries to invest in biofuels in non-oil producing countries for mutual benefit.

Investigate & implement policies on Stabilization Fund to relieve the pressure of high oil prices on ongoing development projects.

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Comprehensive policy integrating R&D, investment, production, land use, land ownership, loss of biodiversity, use of GMOs, GHG, soil erosion and other soil degradation, water use and water contamination, human health impacts and labour conditions has to be implemented at continental level.

Translation of formulated policies into long-term development space available for the production of a large variety of feedstock species.

Policies to settle land acquisition issues in order to facilitate private investment to be formulated.

Mechanised farming appears to be a key component in the development of this industry. But large-scale models run the risk of squeezing out small-scale producers and the associated sustainable development benefits.

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Objectives to be targeted include:

1. Food and energy security - diversification and progressive substitution of oil;

2. Reduction of oil import bill; 3. Wealth creation and poverty reduction;4. Employment creation;5. Foreign exchange generation;6. Significant climate change mitigation impacts;7. Uptake of clean cooking technologies using ethanol gel

fuels and vegetable oil.

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Policy guidelines to be listed as short term, medium term and long term and recommended to member states for adoption.

List below could be incorporated in the discussions:

A. Harmonization of National Policies at Continent levelB. National Policies Development and ImplementationC. Environment, Social, Health and Safety Certification SystemsD. Statistics and InformationE. Research and Development Programmes

F. African Biofuel and International TradeG. Capacity Building, Education and Public AwarenessH. Land Tenure and OwnershipI. Creation of a Common Fund for BiofuelsJ. Rural Labour

K. Innovative Financing MechanismsL. Rural LabourM. Ownership Structure

N. Mandatory Blending Percentage Accompanied by Sustainability Measures

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The impact of integrated biofuels system on rural/industrial development is envisaged to be enormous in increasing access to power and improving her economy.

Following the success stories of biofuels implementation and concerns for global demand and possible problems, the following recommendations have been made:

1. Policy Support: Biofuels strategy devised would have to have a strong government policy framework to ensure availability of market through :

a) increased awareness creation via workshops/seminars on the advantages of using biofuels over petroleum fuels.

b) provision of incentives. Fiscal incentives are necessary to create a viable and successful industry for manufacturing biofuels and such incentives could be linked to carbon savings.

The public acceptance of biofuels as a visible and important industry will be based on manifestation of continental, REC and national governments’ commitment.

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2. Poverty Reduction: This industry can generate enormous number of jobs and can also raise the local economy. The sustainability to the rural areas could be ensured if the farmer is cited as the pinnacle of the crop production and oil processing systems, in the short to medium terms.

3. Standing on the shoulders of giants: Lessons learnt from other nations and regional blocks could be used to carve Africa out to become a successful biofuel centre.

Great potential exist for developing innovative small companies and clusters innovation through well-directed R&D and other support systems. Many other benefits and added-value can arise from enhanced biodiversity to new products and crops.

Not withstanding the above, Africa should avoid becoming raw material producers for the biofuels industry.

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THANK YOU !