biofuels: a tool for conservation? iucn biofuels side event 2may07.… · • biofuels and...

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Biofuels: a tool for conservation? CSD15 side event – 2nd May 2007

Biofuels:a tool for conservation?

CSD15 side event2nd May 2007

Convened by:

In partnership with:

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Welcome and overviewAndrea Athanas

Senior Programme OfficerEnergy, Ecosystems and Livelihoods Initiative

World Conservation Union (IUCN)[email protected]

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Which energy future?

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Biofuels are promoted for many reasons

• Energy security/independence from foreign sources• Support for farmers and promote rural development• Reduction of GHG emissions, and other pollutants

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What are biofuels?• Bioenergy – biomass systems (woody, non-woody or

organic waste) that produce heat and/or electricity. • Biofuels – liquid fuels derived from biomass that can be

used for transport or heating purposes – bioethanol – produced from crops such as sugarcane,

sugarbeet, corn, wheat and barley – biodiesel – produced from seeds such as palm, jatropha,

rapeseed, sunflower and soy

• “First generation” biofuels – produced from agricultural crops

• “Second generation” biofuels – produced from agricultural waste, wood and grasses

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World fuel ethanol production

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0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Barley Wheat Corn Sugar beet Sugarcane

Soybean Castorbeans

Sunflowerseed

Rapeseed Jatropha Palm oil

Lite

rs p

er H

ecta

re

Source: Fulton et al.

Ethanol Feedstock

Biodiesel Feedstock

Biofuel yields of selected ethanol and biodiesel feedstock

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Greenhouse gas reductions

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It all depends!• Careful planning with social and

environmental considerations

• Role for CSD – creating rightenabling environmental for sustainable biofuels

• Linkages: CSD12/13, CSD16/17, CBD/Ramsar, UNFCCC, UNCCD, WTO, etc.

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Agenda• Welcome and overview – Andrea Athanas (IUCN)• Bioenergy: constraints, opportunities and challenges – Jeff Tschirley

(FAO)• Biofuels and landscapes – Barbara Bramble (NWF)• Jatropha for landscape restoration, sustainable energy provision and

livelihoods – Dr. Daniel Nyamai (Trees On-Farm Network, ICRAF)• Fair trade for biofuels and sustainable development – Annie Dufey

(IIED)• Ensuring that biofuels deliver on their promise of sustainability –

Charlotte Opal (Roundtable on Sustainable Biofuels)• Open discussions – Facilitated by Andrea Athanas (IUCN)

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Bioenergy: constraints, opportunities and challenges

Jeff TschirleyChairman of the Interdepartmental Working Group on

BioenergyUN Food and Agriculture Organisation (FAO)

[email protected]

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Where are the hungry?Developed market

economies9Countries in

transition25

Sub-Saharan Africa206

Near East and North Africa

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Asia and Pacific

524

Latin America and Caribbean

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854 million(820 in developing

countries)

212 million India150 million China

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AvailabilityAccess

Stability Utilization

What is food security?What is food security?

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Food and energy security assessments?

• Reduced access to food due to price increases driven by competition for biomass for energy

• Decreased food availability due to replacement of subsistence farm land by energy plantations

• Increased environmental pressure due to introduction or expansion of unsustainable bioenergy systems (water pollution, biodiversity loss, land degradation)

• Price pressure on other goods and services related to land-use and biomass

• Land tenure conflict

• Proportion of chronically undernourished (<5 stunting)

• Adult literacy (+female)• Proportion of household income

to food (access)• Proportion own production of food

(availability)• Population growth• GDP growth per capita• Agricultural contribution to GDP

growth (%)• Adult HIV population • Number of food emergencies

(stability)• Degree of import or export

dependence• Access to water and sanitation

facilities

• Diversification of feedstock crops• Infrastructure development and

employment (rural)• Competition for land use and

other factor inputs• Diversification of domestic energy

supply• Reduced household energy

burden (women and children)• SME energy access improved• Technological advances• Climate change mitigation• Revenue from payment for

environmental services and monetization of carbon credits

Potential negative effectsFood security indicatorsPotential positive effects

Source: FAO Bioenergy and Food Security Project Proposal (2006)

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• land availability and tenure• yield of biofuel crops• access to markets • consistent pricing • costs of production• consistency with prevailing cropping systems

Factors in farmer choiceFactors in farmer choice

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• land conversion, deforestation• competition with food production• biodiversity and landscape values• soil erosion and nutrient leaching• fresh water quantity and quality• pollution from chemicals• employment and wages• gender and child labour

Sustainability concernsSustainability concerns

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•• How large or small is the technology window for food insecure How large or small is the technology window for food insecure countries? countries?

•• Can we estimate Can we estimate bioenergybioenergy production potential with sufficient production potential with sufficient accuracy?accuracy?

•• How might rising commodity prices How might rising commodity prices –– potentially positive for producers, potentially positive for producers, negative for poor consumers negative for poor consumers –– be managed?be managed?

•• Can inequities (land tenure, markets, etc) be reduced? Can inequities (land tenure, markets, etc) be reduced? •• Who is best placed to monitor and address conflicts? Who is best placed to monitor and address conflicts? •• Are certification schemes a viable option? How might they functiAre certification schemes a viable option? How might they function?on?

Some key questionsSome key questions

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Biofuels and landscapesBarbara Bramble

Senior Program Advisor International AffairsNational Wildlife Federation

[email protected]

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Biofuels are promoted for many reasons

• Energy security/independence from foreign sources• Potential to stabilize commodity prices• Promote rural development• Reduction of GHG emissions, and other pollutants.

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-- But biofuels can’t optimize for all at the same time --

• The benefits are not produced automatically, or for all biofuels

• They must be produced under social and environmental safeguards

• The need to moderate expectations.

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Trade Offs• Rural Development/Poverty Reduction - requires protection of

small producers vs

• Massive Gasoline Substitution - requires incentives for large scale producers

• High Cellulosic Production Per Acre - Requires Use of Good Farm Land

vs• Reduction of Food / Fuel Competition - Requires use of

Marginal Land not Suitable for Grains

Continued....

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Trade Offs (cont.) • The "miracle" of Jatropha for biodiesel - can grow in

dry marginal land or can have high production per acre - but not both

• Even National Security - Requires reduction of use of oil – and permits "coal to liquids" and coal power for refineries

vs• Reduction of Greenhouse Gas Emissions - requires

elimination of coal.

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Risks to biodiversity

Agricultural-based• Soil erosion• Soil compaction• Nutrient leaching• Water use• Declining crop diversity• Farmland diversity• Introduced species

Forestry-based• Species loss• Habitat loss/fragmentation• Declining site fertility• Soil erosion• Water consumption• Conversion to agriculture

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Forest and peat bogs are burned to make way for oil palm plantations

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“Dead Zone” Areas in the Gulf of Mexico

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Opportunities for biodiversityAgricultural-based• Economic values for extensive

cropping• Diversification of cropping in

intensive systems• Shift from annual to perennial

crops • Opportunities for conservation

farming practices (e.g. no-till, organic, biodiversity corridors, conservation buffer zones)

• Restoration of degraded lands

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Opportunities for biodiversityForestry-based• Economic incentives for forest

landscapes• Reduced fire risk• …need to accelerate the

introduction and use of second generation technologies which use woody feedstocks

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Mixed Landscape – North

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Mixed landscape - South

Planted forest (Pinus sp), grassland and mosaic landscape with small patches of natural forests in KwaZulu-Natal province, South Africa

IUCN Photo Library © Nils Hager

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Managing biofuels for biodiversity

• Environmental guidelines for producers• Planning processes which promote environmentally-

beneficial cropping and forestry• Certification to inform intermediary buyers and end

consumers – enable differentiation in the market-place• Technological innovations that get us to 2nd generation more

quickly• Exploring biodiversity offsets as a bridging mechanism

between 1st generation and 2nd generation pre-certification

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Dr. Daniel NyamaiRegional Coordinator

Trees On-Farm NetworkWorld Agroforestry Centre

[email protected]

Jatropha for landscape restoration and sustainable energy provision

and livelihoods

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The Case for Jatropha…

Important attributes of Jatropha include:• Oil derived from the seeds is a good source of diesel• The other derivatives of the oil could be the driving force to the development of rural

enterprises to strengthen the local populations’ economic position • Jatropha is also easy to propagate, has rapid growth, and exhibits a wide environmental

tolerance and adaptability• It is a multipurpose crop that can help alleviate soil degradation, desertification, and

deforestation, and can be used for bio-energy to replace fossil diesel, soap production and climatic protection.

• It can grow on marginal land, thus not competing with agricultural crops and requires very little input.

• Fossil fuel prices have gone up; using Jatropha oil is competitive & attractive option.

Jatropha is being promoted globally for bio-diesel production. It is a means of economic empowerment, social upliftment, and poverty alleviation for marginalized rural communities as well as restoration of degraded landscapes and other environmental benefits.

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Jatropha Bio-diesel• Bio-diesel offers excellent opportunities to alleviate rural poverty and improve national economies through people’s involvement in value chain • Increased pollution from fossil fuels leading to adverse climate change makes less-polluting bio diesel more attractive•Biodiesels are biodegradable and non-toxic and have significantly fewer emissions (particulate, CO and Sulphur dioxide) than petro-diesel when burned•Biodiesel can be distributed using today's infrastructure, safer to handle (has a high flash point-160 °C/320 °F), reduces wear and tear of engines.

Main ChallengeRelatively, little information is available to accelerate awareness & development for sustainable energy and livelihoods. Need for National / Regional / international Bio-fuel Strategy. Initial financial support secured for strategy development process

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Jatropha System: A plant with multiple uses

A Jatropha farm reclaiming a

degraded land

A farmer is showing the Jatropha seeds on his

farm

Jatropha Seeds have high non-edible oil

Content

Jatropha oil extraction in process

Jatropha generate extra oil for vehicles and

employment

Capacity building for growers awareness in crop husbandry

Enterprise development and employment

opportunities

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Jatropha Value Chain FrameworkInputs Value Chain Activities and Outputs ImpactOutcomes

Utilisation: Consumers of Bio-diesel and related products consumers Consumer Education Sustainable & renewable Energy system

Marketing & Distribution: Development of marketing strategies, technical standards, handling & distribution, finance, information mgt etcKey Partners: Oil Industry players, Policy makers, finance institutions, distributors, ICT providers, R & D experts

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infrastructure development & capacity building

Operationalize efficientBio-diesel Industry

Sustainable Production of high quality Planting Material: Stakeholders: Target Communities, VJDF, NARS, Private Sector, MoA, MENR etc.

Capacity building: Seed and germplasm,

Research, AgribusinessAnd access to Finance

Sustainable nationalseed and germplasm

system

Benefits to the National Econom

y: Provision of sustainable socio-econom

ic and environmental benefits: C

reation of employm

ent opportunities, im

proved land utilization and ecology, improve

human capital base, Foreign Exchange earnings,

Sustainable production of Jatropha seed (raw material): Development of technical packages/guidelines for increased production (crop husbandry & protection protocols) Key Partners: VJDF, NARS, TOFNET, Foodlink Intl, Donors, Micro-finance institutions, MoA

Capacity building:Production technology,

Research, Finance

Domesticating and mainstreaming Jatropha

production system

Sensitisation of stakeholders and Mobilization of Resources: identification, recruitment and organisation of growers. Key Partners: MoA and other extension service providers – CBO’s, NGO’s, farmer organisations

Advocacy and promotion Improved knowledgeBase and sharing system

Industrial Processing: Oil extraction & trans-esterification process for Bio-diesel production Key Partners: KIRDI, KEBS, KIE, KIPI, policy makers, Private sector, Kenya Oil Refineries, NOC, KPC, KENGEN

Agro processing Technologies and Agribusinesses

Establishment of Bio-diesel industry

Strategic Investments (Inputs) from

the National Econom

y: Suitable Policy Incentives, Regulatory Fram

ework and social

acceptance,

High quality seeds/seedlings

Motivated Grower Base

Availability of raw material (Seed)

Bio-diesel fuel & related byproducts

Sustainable bio-diesel industry

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Jatropha Economic FeasibilityBased on 50ha of land

– Estimated seed yield at the end of two years from 50ha is 300,000 kg– Estimated oil yield from 300,000 kg of seed is 100,000 litres– Estimated press cake from 300,000 kg of seeds is 185,000 kg– Estimated sediment from 300,000 kg of seeds is 15,000 litres.

185,000 of press cake for US$ 0.03

100,000 Litres of oil for US$ 0.6

15,000 Litres of sediments for US$ 0.15

Total income

Totals in US$

5,550

60,000

2,250

67,800

Less production cost 20%

Total

Less marketing cost 10%

Total

Less administrative/maintenance cost 5%

Net income

13,560

54,240

5,424

48,816

2,440.80

46,375.20

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Jatropha Suitability Map for Africa & ECA Region

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Jatropha Suitability Map for Pilot Site

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Conclusions• The Jatropha system is economically feasible, environmentally sustainable and

socially acceptable.

• Promoting domestication, production and processing technologies is needed to maximize benefits by vulnerable groups such as rural farmers, particularly women & children. The fact that management of the tree falls largely under the female domain makes proceeds from it impact positively on their livelihoods.

• Jatropha production system lends itself to a variety of cropping systems which are adaptable to majority of farming communities such as intercropping with Vanilla and undercover crops (pulses and grain legumes, sweet potato etc.) -thereby enhances food security.

• The main product (oil and lubricants) upon combustion is emission free making it environmentally safer for ozone protection and industrial uses.

• Jatropha is effective in combating land degradation and is less costly to establish and manage. It alleviates soil degradation, desertification and deforestation, among others.

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(FAO)• Visions of a sustainable biofuels future – Barbara Bramble (NWF)• Landscape restoration and sustainable livelihoods – Dr. Daniel

Nyamai (Trees On-Farm Network, ICRAF)• Fair trade for biofuels and sustainable development – Annie Dufey



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Making Biofuels Trade Work for Sustainable Development

Annie DufeyResearcher, Environmental Economics

International Institute for Education and [email protected]

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Some market information…• Important market development during the last 5

years: now ~3% global gasoline consumption• Less than 10% of global biofuels production is

internationally traded• Biofuels will share ~10% of world fuel use for

transport by 2025• Important expansion in global trade: as key

consumers (EU, US, and Japan) will not have the domestic capacity to cope with internal demand

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• Biofuels trade can deliver opportunities for developing countries…– They are the most efficient ‘feedstock’ producers– Sugarcane: Brazil, Guatemala, Costa Rica, South Africa, Malawi– Palm oil: Malaysia, Indonesia, Colombia, Ecuador– Opportunities in terms of: new-end markets; export revenues;

diversification and value added.• Trade is key for reaching the desired economies of scale in

small/medium producing countries• But, the sustainable development benefits are not straightforward…

– Export-led production can exacerbate environmental/social problems of agric. commodity, adding complexities to sustainability equation (e.g food security and carbon emissions).

– Several ‘issues’ affecting developing countries’ trade potential

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Policies undermining trade potential…

• Main trade barriers:– Tariffs – Tariff escalation – Domestic Support: Subsidies on agriculture

+ energy;– Technical standards

• These policies have impacts on: – DCs’ competitiveness, opportunities for adding value to agricultural

production and potential for poverty reduction– Global environmental and social sustainability (e.g corn-based

bioethanol in the US - low energy balance and impacts on food security on food-importing countries)

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• Lack of unique forum to discuss biofuels’ trade barriers reduction at the WTO:– Bioethanol/feedstocks classified as

agricultural products and governed by the Agreement on Agriculture

– Biodiesel classified as industrial products and subject to the general rules of GATT

– ‘Biofuels’ can be included under the ‘Environmental Goods and Services’definition under the Doha Round

Policies undermining trade potential (cont.)

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• Environmental/social certification schemes: need to be designed so that they do not constitute unnecessary trade barriers, especially for small-producers– Meaningful participation of producing country– Taking into account relevant environmental/social condition prevailing in

the producing country– ‘Small-producer’ friendly: no overburden in terms of financial costs and

complex procedures– Avoid proliferation/promote mutual recognition

• Fair distribution of costs/benefits along the value chain– final overall impact on primary producers also depend on ‘Who gets

what’– Need to set up structures for small-holders inclusion (e.g ‘Social Fuel

Seal’ in Brazil)

Private sector policies also matter…

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• Trade benefits not straightforward: DCs need to have a clear understanding of the economic, environmental and social impacts of biofuels production & trade

• Effective strategy on biofuels production and trade needs aproactive and coordinated holistic policy development

• Governments need to identify impacts of main trade barriers and the best ways and fora to address them

• Governments need to conduct assessment of comparative advantages, land availability and food security impacts -biofuels may not be an option for every country

• Governments need to invest/to incentivise investment on better environmental technologies and practices

• Need to implement policies to include small producers

Some recommendations…

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Ensuring that biofuels deliver on their promise of sustainability

Charlotte OpalCoordinator, Roundtable on Sustainable Biofuels

Swiss Federal Institute of TechnologyÉcole Polytechnique Fédérale de Lausanne

http://EnergyCenter.epfl.ch/[email protected]

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Concept• Multi-stakeholder initiative to develop principles

and criteria for sustainable biofuels production that are:– Simple and accessible– Generic to all crops– Adaptable to new information– Efficient and cheap to measure– Compliant with WTO rules

(use ISEAL code)

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Building on other Initiatives• The Netherlands: developing a set of sustainability

standards• United Kingdom: Low Carbon Vehicle Partnership draft

environmental and social standards• The European Parliament: new biofuels mandate –

goal of 10% by 2020 – only if production is “sustainable”• California: new Low Carbon Fuels Standard presumes

need for sustainability safeguards• Sustainable Biodiesel Alliance (USA): proposing

standards for locally produced biodiesel• Brazil: biodiesel program offers financial incentives for

small scale farmers

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Governance• Steering Board members include WWF, BP, Shell, National

Wildlife Fed, FSC, Petrobras, Mali Folkecenter, Univ. Cal Berkeley, TERI India, Toyota

• Global stakeholder feedback at every step (blogs, meetings, wiki technology)

• Four Working Groups to make recommendations to SteeringBoard re. how to measure performance on the principles, including:– GHG efficiency– Environmental concerns (biodiversity, soil, water . . .)– Social concerns (labor rights, food security, poverty alleviation . . .)– Implementation (feasibility of what other three Working Groups are

developing)

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Hazardous or illegal working

conditions

Biofuel crops displace food

crops

Water pollution, significant

reduction in water

availability

burning fields for planting

monoculture, deforestation

80%+ grey energy, high N2O emissions from

fertilizers

No or negative impact on ecological/ social footprint

Moderate impact on local water

quality, quality

Moderate impact on air

quality

erosion protection

Native species, avoid invasive

species

10-80% grey energy content

Small or no reduction on ecological/ social footprint

Best-practice wages and

working conditions

Biofuels development has positive

effect on poor populations

No sig. impact on local water

quality or quantity

No sig. impact on air quality on farm or at processing

facility

Use of already

degraded land

Crop rotations, biodiversity

corridors, buffer zones

Low grey energy content (<10%), positive GHG

balance, maximize carbon sequestration (e.g. low-till)

Considerable reduction of ecological/ social footprint

Working conditionsFood securitywater useair qualitysoil healthbiodiversityTotal score for product life-

cycle (well-to-wheel)

Social ConcernsConservation of Natural ResourcesOverall Energy and Greenhouse Gas

Efficiency

Roundtable on Sustainable Biofuels - Draft Scorecard ConceptDraft Scorecard Concept

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Who will use this tool?• Policy-makers• Banks (for investment

criteria)• Companies (for CSR

reporting)• NGOs for monitoring

company performance• Third parties for voluntary

labels (‘Green fuel’)

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(IIED)• Meta-certification for biofuels – Charlotte Opal (Roundtable on

Sustainable Biofuels)• Open discussions – Facilitated by Andrea Athanas (IUCN)

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Thank you!

THANK YOU for your participation…

… for more information, please see www.iucn.org/energy and

www.bioenergywiki.net.

biofuels: a tool for conservation? iucn biofuels side event 2may07.… · • biofuels and...

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