Biofuels Sustainability Qs: towards solutions Njeri Wamukonya Presented at the High-level Biofuels...

Biofuels Sustainability Qs:

towards solutions Njeri Wamukonya

Presented at the High-level Biofuels Seminar in Africa, Addis Ababa, 30July-1 August 2007

A fast growing market… Worldwide investment in bioenergy in 2005 were US$2.66 billion, in 2006 it was US$ 21 billion.

Governments in developed and developing countries are putting into place bioenergy targets.

Main drivers for bioenergy uptake are energy security, climate change and development concerns.

… with huge potential

But risks

Food security4 cumulative dimensions:

Availability, Access, Stability, Utilization

Water scarcity

Issues/realities

The biofuel industry will prevail due to the forces/incentives and drivers in place

Drivers are multifaceted (CC underlying- but it is MITIGATION –(who has the mitigative obligations?))– and that’s all its about from a CC perspective

What are the risks posed by this driver: is there danger of solving one env problem while creating other env problems

Issues/realities Stakeholders interests can be conflicting

(large companies vs women subsistence farmers)

What experiences can and should be transferred?

What pitfalls should be avoided based on past cash-crop experiences?

How can potential threats be circumvented?

Challenges (two-fold) 1: it is important that environmental and

social criteria for production of the biomass are met

2: this criteria should be flexible to achieve maximum yield for biofuels production (but not compromising)

Challenges Hence UNEP and partners are setting up a

process for establishing stds for biofuels (starting with vehicles) ; policy guidelines also needed ; enforcement mechanisms/self regulatory

Agreement on a criteria or principles is

necessary Target stakeholders: producer and consumer Tool : certification

Certification

assures customers that the product they purchase is produced in a sustainable manner

Certification steps:1. Application of Stds - locally relevant but also comply with

international stds/good practice

2. Inspection (audit) –assessment to ensure stds are met

3. Evaluation and results of audit –tracing product to source

4. Issuance of the certificate if compliance is met - after receiving accreditation then products can be labeled with ‘seal of approval’

Team activities towards stds goal Gather info on existing certification systems

that could be adapted `for establishing sustainable biomass production system

12 different labels were screened in Forestry, Agric, bioenergy for heat and electricity production and trade sector – examining indicators that cover social, economic, ecological and general criteria

General findings

Agric: - no certification system for biomass production specifically for bioenergy

Existing systems emphasis on: Organic farming – prohibits use of agrochemicals

eg mineral nitrogen fertilisers and pesticides Integrated agric – farming in an economically

viable way while respecting ecological demands

General findings

Forestry: certification ensures management and proper logging practices are adhered to

Considers social, economic and env benefits for both producer and consumer of products

There are 20 forest certification organizations and stds in operation

2 major forest certification umbrellas – Programme for endorsement of forest certification schemes Forest stewardship council

General findings

Bioenergy for heat and electricity production : deals with criteria for sustainable energy from biomass sources

2 systems – European Green Electricity Network (EUGENE) Green gold certificate

3rd relevant system focusing on principles and criteria for palm oil production – Roundtable on Sustainable Palm Oil (RSPO)

General findings

Trade : can benefit the economy But can also create inequities Eg: 49 LDCs rep---10% of world’s pop---

contribute only 0.4% of global exports Incoperating trade criteria provides better

trading opportunities and ensures producers especially poor and disadvantaged producers benefit from biofuels (not repeat the LDC scenario)

Can certification work? Common agenda / shared goals Commitment to goal and partners

Overall : accountability/enforcement mechanisms/commitment and political will

Flexible and lean/simple inst structure examples

Roundtable on Sustainable Palm Oil (RSPO)

Ensures palm oil production is done in a sustainable manner

Started in 2001 WWF got consultant to explore possibilities

2003 : WWF organised consultative meeting -200 participants from 16 countries

2004 RSPO formally established under the Swiss Civil Code

Association seats in Zurich but sec currently based in Kuala Lumpur

Roundtable on Sustainable Palm Oil (RSPO)

Funding ordinary membership fees at Euro2000/yr Affiliate membership fees at Euro 250/yr

Structure Managed by EB comprised of 16 members designated by

general assembly for 2 years Members : oil palm growers, palm oil producers, palm oil

processors and traders, consumer goods manufacturers, env ngos, retailers, banks/investors, social/dev ngos

decisions made on consensus basis

Roundtable on Sustainable Palm Oil (RSPO)

STDs and the respective principles

1. Social Dev: Responsible consideration for employees, individuals

and communities affected by growers or mills

2. Econ Dev: Commitment to long term econ and financial viability

3. Env Dev: Env responsibility and conservation of natural resources

and biodiversity

Roundtable on Sustainable Palm Oil (RSPO)

4. Generic Stds Env responsibility and conservation of natural

resources and biodiversity Compliance with applicable laws and regulations Responsible dev of new plantings Commitment to continuous improvement in key

areas of activity

Accreditation : independent

Firetrade Labelling Organisation

For such products as coffee and cocoa Purpose: improve position of poor and

disadvantaged producers in the developing world

Labeling initiatives and members encourage industry and consumers to support fairer trade and purchase products

Firetrade Labelling Organisation

Funding: license fees from Labeling Initiatives Premiums from consumers Certification paid by producers and traders

Structure : Board of Directors (11 members for 3 years) . A Director runs the organization

3 sets of stds: for small farmers Laborers on plantations and factories Traders

Firetrade Labelling Organisation

Label criteria: Minimum and progress requirements for Stds Producers business unit –suppo

Certification areas: 560 orgs in 75 countries in africa, asia, and LA (their effectiveness in africa is questionable given 0.4% share of trade among LDCs!!)

Does Africa need such an approach - stds/criteria? Status and stages of dev in African countries differ Level and extent of involvement will differ External stakeholders diversified – approaches

individual or community or country No level playing field between ‘external’ players and

local (includes gov) eg external players are financially and information advantaged

Past experiences with cash crops call for caution

A policy makers choice!!

Basis for development

Social Dev : not compromise/compete with food, (water, land, labor etc)

Does the country meet food demand locally What is the share towards food security does

local production meet? Is the country under food security threat?

Guiding approaches ??

Areas under food production should not shift to biofuels

Areas with high-medium production potential should not be used for biofuels

Marginal land: used only if not under threat to severe unrecoverable degradation

Clear forest land/wetlands for biofuels What type of national support to provide for

biofuels? How does this compete with other food security needs?

Asanteni Sana