Moving toward sustainable biofuel programs in Africa

STANFORD MWAKASONDA

Energy Research CentreUniversity of Cape Town, South Africa

The First High-Level Biofuels Seminar in Africa

30 July – 1 August 2007, Addis Ababa, Ethiopia.

Biofuels in Africa - OpportunitiesBiofuels in Africa - Opportunities

Biofuels (from energy crops) are seen by many to offer Africa an all Biofuels (from energy crops) are seen by many to offer Africa an all time opportunity for meeting growing needs of energy, especially time opportunity for meeting growing needs of energy, especially raising modern energy access in rural areasraising modern energy access in rural areas Biofuels envisaged to reduce dependence on imported fossil Biofuels envisaged to reduce dependence on imported fossil

fuelsfuels Biofuels to provide significantly employment opportunities; e.g Biofuels to provide significantly employment opportunities; e.g

of Brazil ethanol programof Brazil ethanol program Biofuels seen as the solution to providing productive energy in Biofuels seen as the solution to providing productive energy in

rural areasrural areas Biofuels promoted as a mitigation option to the challenges of Biofuels promoted as a mitigation option to the challenges of

global warmingglobal warming Biofuel to help with problems of air pollutionBiofuel to help with problems of air pollution Biofuel program for land reclamationBiofuel program for land reclamation Biofuels to improve food productivityBiofuels to improve food productivity

Biofuels in Africa - ConcernsBiofuels in Africa - Concerns

Acknowledged: biofuels concerns/risks Acknowledged: biofuels concerns/risks and uncertainties for and uncertainties for investmentsinvestments

General concernsGeneral concerns Biofuels seen as a competitor to food supply and hence Biofuels seen as a competitor to food supply and hence

impacts on food pricesimpacts on food prices Biofuels might become a great incentive for genetically Biofuels might become a great incentive for genetically

modified foodsmodified foods Land use/tenure issues and impact on farming systemsLand use/tenure issues and impact on farming systems Biofuels and environmental issuesBiofuels and environmental issues

Investment concernsInvestment concerns Biofuels industry not quite proven in AfricaBiofuels industry not quite proven in Africa Returns on investments; fluctuating oil prices (break even oil Returns on investments; fluctuating oil prices (break even oil

prices)prices) Land allocation for energy cropsLand allocation for energy crops Mixed signals on biofuel promotions - Life Cycle AnalysisMixed signals on biofuel promotions - Life Cycle Analysis

Biofuels - realityBiofuels - reality

Biofuel program

Opportunities

Concerns

Biofuels – reality…Biofuels – reality… -2-2

““Bioenergy holds out enormous Bioenergy holds out enormous opportunities…, especially in the opportunities…, especially in the developing world - but there are developing world - but there are dangers too, and we want to be very dangers too, and we want to be very clear about them"clear about them"

Gustavo Best, FAO Senior Energy Gustavo Best, FAO Senior Energy CoordinatorCoordinator

International biofuel strategizingInternational biofuel strategizing

Significant effort for strategizing on biofuels from Significant effort for strategizing on biofuels from International community, including;International community, including; UN – Energy: Sustainable Bioenergy: A Framework UN – Energy: Sustainable Bioenergy: A Framework

for Decision Makersfor Decision Makers The UNIDO Biofuel StrategyThe UNIDO Biofuel Strategy Biofuels Initiative of UNCTADBiofuels Initiative of UNCTAD The International Bioenergy Partnership (IBEP)The International Bioenergy Partnership (IBEP) The Global Bioenergy Partnership (GBEP)The Global Bioenergy Partnership (GBEP) The Global Village Energy Partnership (GVEP)The Global Village Energy Partnership (GVEP) Also FAO, UNEP and WTO on bioenergy standardsAlso FAO, UNEP and WTO on bioenergy standards

African countries could use these initiatives as African countries could use these initiatives as templates for developing own strategies and policiestemplates for developing own strategies and policies

Africa regional biofuel strategizing: SADCAfrica regional biofuel strategizing: SADC

SADC biofuel strategySADC biofuel strategy SADC region believed to have “the largest untapped SADC region believed to have “the largest untapped

potential of biofuels in the world”, potential of biofuels in the world”, (Erhard Seiler, Chief Executive, (Erhard Seiler, Chief Executive, Southern African Biofuels Association)Southern African Biofuels Association)

In 2004 SADC Food, Agriculture and Natural Resources In 2004 SADC Food, Agriculture and Natural Resources (FANR) released a study on the feasibility of the (FANR) released a study on the feasibility of the production of biofuels in the SADC regionproduction of biofuels in the SADC region

SADC Biofuel strategy completed in 2005, SADC Biofuel strategy completed in 2005, acknowledging need for considerable investment for acknowledging need for considerable investment for successful implementation of biofuel initiativessuccessful implementation of biofuel initiatives Call for all SADC nations to develop strategies which Call for all SADC nations to develop strategies which

would make the sub region more self reliant in would make the sub region more self reliant in energy productionenergy production

Important for similar initiatives in other regionsImportant for similar initiatives in other regions

African countries biofuel strategizing African countries biofuel strategizing

Few countries in Africa have developed strategies or Few countries in Africa have developed strategies or policies on biofuels, but many feel they are ready for policies on biofuels, but many feel they are ready for biofuel programsbiofuel programs

Important to have a sense of direction on biofuelsImportant to have a sense of direction on biofuels for increasing energy access?for increasing energy access? for offsetting oil import costs?for offsetting oil import costs? for enhancing rural development?for enhancing rural development? for GHG emission reduction (CDM)?for GHG emission reduction (CDM)? for waste land reclamation?for waste land reclamation?

Follow with strategies/policies to provide the required Follow with strategies/policies to provide the required guidance in achieving the desired objective (s)guidance in achieving the desired objective (s)

Pertinent issues on biofuel policies/strategiesPertinent issues on biofuel policies/strategies

Right conditions for biofuel program for supporting Right conditions for biofuel program for supporting sustainable energy, environment, forestry, water and sustainable energy, environment, forestry, water and land use/agriculture, etcland use/agriculture, etc

Important for a country to specialize in crops in which Important for a country to specialize in crops in which it has a competitive advantage, is sustainable and it has a competitive advantage, is sustainable and which has favorable energy yieldswhich has favorable energy yields

Need for biofuels strategy/policy to be developed in Need for biofuels strategy/policy to be developed in consistency with existing policies and legislation on consistency with existing policies and legislation on water resources, land use, forestry, agriculture etcwater resources, land use, forestry, agriculture etc

Need for benefits from biofuel initiatives to clearly Need for benefits from biofuel initiatives to clearly stand out and pass the sustainable development teststand out and pass the sustainable development test

Pertinent issues on air pollution and GHG emissionsPertinent issues on air pollution and GHG emissions

Biofuels on pollution and GHG emission (CDM)Biofuels on pollution and GHG emission (CDM) Air pollution benefitsAir pollution benefits

Air pollution benefits in comparison with fossil Air pollution benefits in comparison with fossil diesel, non blended gasolinediesel, non blended gasoline

Indoor air quality benefits (kitchen killer problem)Indoor air quality benefits (kitchen killer problem) GHG emission reductionGHG emission reduction

Life cycle analysis in determining net energy Life cycle analysis in determining net energy consumption and GHG emission (growing, consumption and GHG emission (growing, transporting and processing biofuels)transporting and processing biofuels)

Where forests are cleared for energy crops it is Where forests are cleared for energy crops it is very unlikely that the GHG emission reduction will very unlikely that the GHG emission reduction will be realizedbe realized

Perennial energy crops will have a higher potential Perennial energy crops will have a higher potential of GHG emission reductionof GHG emission reduction

Pertinent issues on land usePertinent issues on land use

Biofuel initiatives should not result in deeper poverty Biofuel initiatives should not result in deeper poverty for poor farmersfor poor farmers Large-scale farming operations are likely to take over Large-scale farming operations are likely to take over

productive land and crowd out subsistence farmersproductive land and crowd out subsistence farmers Use of degraded land for energy crops could help in Use of degraded land for energy crops could help in

the rehabilitation of soilsthe rehabilitation of soils

Questions to be addressed:Questions to be addressed: Which land is most suitable, and how should it be Which land is most suitable, and how should it be

used? used? Could the cultivation of land for biofuels encroach Could the cultivation of land for biofuels encroach

upon food production or create pressure on arable upon food production or create pressure on arable land, thus perhaps jeopardizing the livelihood of small-land, thus perhaps jeopardizing the livelihood of small-scale and subsistence farmers?scale and subsistence farmers?

Biofuel programs and land acquisition issuesBiofuel programs and land acquisition issues

“ “A firm seeking to invest in an ethanol energy project A firm seeking to invest in an ethanol energy project has been finding it hard to secure a big enough piece has been finding it hard to secure a big enough piece of land for the cultivation of sugarcane, the main raw of land for the cultivation of sugarcane, the main raw material in the business”material in the business”

- Mr. Nazir Karamagi, Tanzania Minerals and Energy minister- Mr. Nazir Karamagi, Tanzania Minerals and Energy minister

“… “…there are legal procedures one must follow to there are legal procedures one must follow to acquire land for such investments. There is no short-acquire land for such investments. There is no short-cut and they cannot start without following these cut and they cannot start without following these procedures, including compensating local residents”procedures, including compensating local residents”

- - Ms. Rhoda Nsemwa, Bagamoyo District Executive DirectorMs. Rhoda Nsemwa, Bagamoyo District Executive Director

(Tanzania Guardian, 2/7/2007)(Tanzania Guardian, 2/7/2007)

Pertinent issues on land ownershipPertinent issues on land ownership

Rather than biofuel production resulting in the Rather than biofuel production resulting in the concentration of land ownership and land access into concentration of land ownership and land access into fewer hands, agroforestry should be encouraged to fewer hands, agroforestry should be encouraged to current owners of landcurrent owners of land

Favouring small scale biofuel initiatives is more likely Favouring small scale biofuel initiatives is more likely to have higher social economic returns than large to have higher social economic returns than large scale biofuel initiativesscale biofuel initiatives

Development of agroforestry/intercropping that Development of agroforestry/intercropping that includes different types of plants (trees and includes different types of plants (trees and bushes) as well as speciesbushes) as well as species

Pertinent issues on waterPertinent issues on water

Ensuring that any production of energy crops does not Ensuring that any production of energy crops does not result inresult in Degradation/contamination of water sourcesDegradation/contamination of water sources Depletion of water sourcesDepletion of water sources Water use conflicts (e.g diversion of water away from Water use conflicts (e.g diversion of water away from

food production)food production)

Standing regulations on water sources and use to be Standing regulations on water sources and use to be followed, including robust EIA before embarking on followed, including robust EIA before embarking on any large scale energy crop projectsany large scale energy crop projects

Pertinent issues on biodiversityPertinent issues on biodiversity

““Important to match crops with local conditions” Important to match crops with local conditions” (Achim (Achim Steiner, UNEP)Steiner, UNEP)

Energy crops may in some locations will be alien cropsEnergy crops may in some locations will be alien crops Risks of being invasive species to be properly Risks of being invasive species to be properly

investigatedinvestigated Investigate promotion of locally grown energy crops, Investigate promotion of locally grown energy crops,

e.g sorghum is common in most places on the African e.g sorghum is common in most places on the African continentcontinent

Need of clear guidelines on genetic modification (GM Need of clear guidelines on genetic modification (GM crops)crops)

Avoid clearing of large areas of natural Avoid clearing of large areas of natural forests/habitats to pave way for energy crop farmingforests/habitats to pave way for energy crop farming The problem of clearing of natural forests in The problem of clearing of natural forests in

Southeast Asia for oil palm plantationsSoutheast Asia for oil palm plantations

Biofuel programs and biodiversity issuesBiofuel programs and biodiversity issues

““A row over the conversion of rainforests into biofuel A row over the conversion of rainforests into biofuel plantations is creating a grave political crisis for a country plantations is creating a grave political crisis for a country until now seen as a beacon for democracy in Africa.”until now seen as a beacon for democracy in Africa.”

“ “The president of Uganda, Yoweri Museveni, is this week The president of Uganda, Yoweri Museveni, is this week pressing ahead with plans to give a large chunk of one of the pressing ahead with plans to give a large chunk of one of the country’s last protected forests to a sugar cane company country’s last protected forests to a sugar cane company (Ugandan Asians) so it can expand its operations…to cash (Ugandan Asians) so it can expand its operations…to cash in on the booming global market in sugar for biofuels”in on the booming global market in sugar for biofuels”

“ “ The crisis reached boiling point last week when a The crisis reached boiling point last week when a demonstration against the plan in the capital Kampala turned demonstration against the plan in the capital Kampala turned into an ugly race riot. Asian shops were ransacked, an Asian into an ugly race riot. Asian shops were ransacked, an Asian was stoned to death and police killed two demonstratorswas stoned to death and police killed two demonstrators ””

(19 April 2007, NewScientist.com news service: Fred Pearce )(19 April 2007, NewScientist.com news service: Fred Pearce )(http://www.newscientist.com/article/dn11671-biofuel-plantations-fuel-strife-in-uganda.html)(http://www.newscientist.com/article/dn11671-biofuel-plantations-fuel-strife-in-uganda.html)

Pertinent issues on food securityPertinent issues on food security

Biofuel programs and the “Food, Feed, Fuel” challengeBiofuel programs and the “Food, Feed, Fuel” challenge

Concern is impacts of biofuel initiatives and food Concern is impacts of biofuel initiatives and food pricesprices Likely to happen in Africa due to lack of surplus Likely to happen in Africa due to lack of surplus

food production in almost all countriesfood production in almost all countries Likely to happen if more profitable to sell food Likely to happen if more profitable to sell food

crops to biofuel producerscrops to biofuel producers Likely to happen if there is significant Likely to happen if there is significant diversion of diversion of

crop production from food and to production of energy crop production from food and to production of energy cropscrops

Regulation on food prices? Energy crops market? Regulation on food prices? Energy crops market? Farming systems?Farming systems?

Biofuels - way forwardBiofuels - way forward

““Biofuels in Africa…Biofuels in Africa…

see the opportunities…see the opportunities…

see the concerns…see the concerns…

… …secure the future.”secure the future.”

Thank you for your attentionThank you for your attention

Stanford A.J MwakasondaStanford A.J MwakasondaEnergy Research CentreEnergy Research CentreUniversity of Cape TownUniversity of Cape TownP/Bag, Rondebosch, 7701P/Bag, Rondebosch, 7701South AfricaSouth AfricaEmail: Email: stanford.mwakasonda@uct.ac.zastanford.mwakasonda@uct.ac.zaTel: +27-21-7220-37352Tel: +27-21-7220-37352Web: www.erc.uct.ac.zaWeb: www.erc.uct.ac.za