The process of Paris COP 21 and Bioenergy development:

do they fit?Remigijus Lapinskas, President

World Bioenergy Association

Tbilisi, 2017 02 22

Content

• Paris Agreement

• Fossil Exit Strategy

• Carbon Dioxide Taxation

• Bioenergy

• Outlook

• Case studies

• Conclusions

• About WBA

Paris Agreement

• The Paris Agreement builds upon the UNFCCC and brings all nations to a common cause to undertake ambitious efforts to combat climate change and adapt to its effects, with enhanced support to assist developing countries to do so. As such, it charts a new course in the global climate effort.

• Mission: Strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.

Paris Agreement

• At COP21 in Paris in December 2015:• 195 countries adopted Paris Agreement• 1st ever universal, legally binding global climate deal

• On 5th October 2016, the threshold was reached• 55 countries totaling more than 55% of global emissions ratified the

agreement

• On 4th November 2016, the agreement entered into legal force

• 120 parties have ratified the agreement (out of 197 countries)

• Key instruments for achieving Paris Agreement Goals - Fossil Exit Strategy and Carbon Tax

Fossil Exit Strategy

• Need an exit strategy for fossil fuels as early as 2050

• A step by step and year by year reduction of fossil fuel use globally and nationally

• Fast deployment of renewable energy technologies including solar, wind, geothermal, hydro and bioenergy

• Graz declaration – conclusions from CEBC, 2017 01 18-20

Carbon tax

• Key instrument for energy transition

• Simple and efficient way to reduce use of fossil fuels, improve energy efficiency, and make renewables more competitive.

• It can be tax neutral, as reducing other taxes will complement carbon tax implementation.

• All countries already have some kind of energy taxation and it is administratively easy to introduce

• A Carbon tax can be applied to all sectors of society

• Bioenergy does not pay Carbon tax, as the carbondioxide released at combustion of biomass and biofuels is equivalent to the carbon dioxide uptake by the plants used as biomass for energy.

Global energy consumption

• 80% of all energy consumption –fossil fuels (Oil and oil products the highest at 38%)

• In 2013, renewables share is 18.3% - an increase of 0.2%

• Bioenergy – largest renewable energy source globally – 14%

• Solar, wind, geothermal etc. –1% in global energy consumption

Bioenergy and renewables

• Electricity• Bioenergy is the third largest renewable electricity generating source

• Hydro and wind are the largest

• Derived heat• Bioenergy is the largest derived heat generating renewable source

• Direct heat• Bioenergy is the largest direct heat generating renewable source

• Transport• Bioenergy is the largest renewable source in transport sector

Composition of bioenergy

Main sector Sub sector Examples

Agriculture Dedicated crops -main product Crops for biofuels, energy grass, short rotation forests, other dedicated crops for

energy

By-products and residues Herbaceous by-products: straw cereals, rice, cornstalk, bagasse, empty fruit

bunch from oil palm,

Woody biomass: pruning and regenerating orchards, vineyards, olive plantation,

oil palm plantations,

Other forms: processing residues such as kernels, sunflower shells, rice husks,

manure from animal production

Forestry Main product Stems, wood fuel from forests or trees outside forests, from landscape cleaning

By-product Residues of forest harvest (branches, tops) residues of wood industry (bark, saw

dust, other wood pieces, black liquor, wood chips, recycled)

Organic Waste MSW (Municipal Solid Waste), food waste, waste from the food industries,

sewage

Bioenergy – Benefits

• Renewable, carbon neutral, big potential

• All forms of final energy: heat, electricity, transport fuels

• Stable supply

• Stored solar energy, very low cost of energy storage

• Tremendous Job creation in rural areas

• Also can solve ecological problems

Future of bioenergy – Heat market• Significant potential in heat market

• Domestic/Private household heating

• Combined heat and power production

• District Heating Networks to replace natural gas, oil, etc…

• Efficient conversion of waste to energy

• Improved use of agricultural residues (e.g. husk and straw) for heat generation

Future of bioenergy - Transport

• Decarbonizing transport sector is a major challenge

• Biofuels are a sustainable alternative for replacing fossil fuels in road transport

• All biofuels irrespective of their definition (advanced, conventional, 1st Generation etc.) should be developed based on their emission savings

• Major sectors include aviation and maritime, heavy duty transport and agriculture machinery

Stockholm, Sweden

• Approx. 1 million inhabitants

• Heating• District heating from combined heat

and power dominates heating system – 80% from renewables

• 2 TWh of electricity generated

• Heat pumps also available

• Transport• Renewables dominate transportation

• HVO, Biogas, Ethanol and Biodiesel are prominently used

Copenhagen, Denmark

• 1.3 million inhabitants

• Heating• More than 98% households

covered by district heating• Wood pellets, chips, straw, waste

and geothermal energy

• Electricity• Renewable electricity from MSW

along with offshore wind

• Transport • Actively promote using bikes

Lithuania Forests cover ~ 33.2 percent of Lithuania (2200000 hа)

Source: Lithuanian confederation of renewable resources

Ddddddd

80 %

65 %

6 %

33 %

80 %

80 %

50 %

In 2016 In 2020

12 %

Power and heat generation from biomass :

Conclusions: directions for biomass energy development• Market development shift towards Asia and Africa – increasing pellets

trade, technology transfer

• Biomass resources shift – towards greater use of agriculture residues and non-woody biomass

• Development of efficient and cheap cooking stoves

• Switch from fossil fuels to biomass in District heating

• Development of cogeneration

• Faster development of liquid biofuels for transportation

• Biogas – environmental solution, not only energy

Conclusions – How to make Paris agreement working?• Carbon tax is key instrument: Creating a global carbon tax is the most efficient way to apply

polluters pay principle to the climate issue. It is the simplest way to reduce fossil fuels, improve energy efficiency and make renewables more competitive.

• Change perception from greening fossils to removing fossil fuels: A fossil exit strategy for all countries with a managed reduction of fossil fuels is absolutely critical.

• Stop relying on unreliable technologies: Technologies like clean coal and carbon capture etc. will only increase fossil fuels use and will not assist in climate issue. These fossil technologies are expensive, only exist in pilot plant level, not commercially viable and it is dangerous to depend on such unproven technologies.

• No new investment in fossil fuel infrastructure: Investing in new fossil fuel infrastructure, for e.g. natural gas pipelines will create lock in effects and stranded assets. They should be avoided.

• Stop fossil fuel subsidies: Fossil fuel subsidies have to be phased out gradually.

• Promote all renewable energy technologies: All renewable energy technologies including solar, geothermal, hydro, bioenergy and wind in all regions and countries should be developed rapidly according to their specific regional potentials.

About WBA

• World Bioenergy Association (WBA) is the global organization dedicated to supporting and representing the wide range of actors in the bioenergy sector. Our members include bioenergy associations, institutions, companies and individuals.

• WBA has been working to address a number of pressing issues including data, knowledge and technology transfer, impacts on food, water and land use, and promoting bioenergy on a global level

• Mission: Promote the increasing utilization of bioenergy globally in an efficient and sustainable way and to support the business environment for bioenergy.

• Expansion of the organization: creation of bioenergy hubs (regional branch-offices) in China, Canada, Middle East, South-East Asia…

• Webpage: www.worldbioenergy.org

Organization

• Governed by the board• 19 board members

• 17 different countries – Lithuania, Germany, Canada, Australia, Kenya, Turkey, Brazil, Belgium, Singapore, Austria, Malaysia, Japan, Sudan, Sierra Leone, USA, China, Sweden

• Representing all sectors of bioenergy from all continents

• Industrialists, researchers, farmers, consultants etc.

• Membership• More than 200 members from 50 countries

Thank you!

World Bioenergy Association

Holländargatan 17, 111 60, Stockholm, Sweden

info@worldbioenergy.org

www.worldbioenergy.org