Socio-economic aspects of biofuels production

– what are the concerns in Europe?

Semida Silveira
Professor, PhD, head of division Energy and Climate Studies
Coordinator of KTH Strategic Platform for Energy and Climate

II Workshop on the Impact of New Technologies on the

Sustainability of Sugarcane/Bioethanol Production Cycle
Campinas, 11-12 November 2009

semida.silveira@energy.kth.se

1
Socio-economic aspects of biofuels production
– what are the concerns in Europe?

  bioenergy (among renewables) in the EU

  sustainability criteria - environmental x social
preocupations in perspective
  the global development agenda
  tasks for CTBE

2
 Ambitious goals in the EU
define new market conditions

At least 20% less ghg emissions

30% if a global agreement is reached
20%

20% more energy efficiency

20% renewable energy
2020
20% 20%

10% renewables in transport

at least 14% of bio-energy in the total mix in 2020

3
Renewables for EU 27, 2000 and 2005
and national targets for 2020

Source: Eurostat, Swedish Energy Agency

4
Public sector energy R&D
IEA countries from 1974 to 2006

Source: IEA 2008, in support to G8 plan of action

5
Global new investment in clean energy
technology by asset class, 2004-2007

Source: New Energy Finance

6
 Global new investment by technology 2007

Public markets new

investments

Source: New Energy Finance

7
Biofuel policy development in the EU
•  2001: In the “Communication on alternative fuels for
road transport” the European Commission identifies i.a.
biofuels as potential future transport fuel
•  2003: The EU adopts the Biofuels Directive (2003/30
EC ). Targets: 2% in 2005; 5.75% in 2010
•  2003: Energy taxation Directive (2003/96 EC) allows
de-taxation of biofuels
•  2005: EC presents “Biomass Action Plan”
•  2006: EC presents “An EU strategy for biofuels”
prepares revision of the Biofuels Directive 2003/30 EC
•  2007: “Road Map for Renewable Energy in Europe”
•  2010: Deadline for National Action Plans

8
The role of biofuels in the EU

•  Increased security of supply

•  Reduction of greenhouse gases
•  Reduction of oil dependency
•  Sustainable development
•  Rural revitalization
•  Competitiveness

9
! Ethanol one option among others in EU !
•  EU is evaluating various alternatives
Ethanol and biodiesel
Gas / biogas
Electricity
•  Strong focus on what EU can do internally
to increase supply security
•  EU pushing for technological development
to increase its competitiveness
•  Plan for 15 pilot/demo plants to accelerate
biofuel development (SET Plan)

10
 The SET-Plan in the EU
•  Strategic
Energy
Technology
Plan (COM(2007) 723
final)= strategic
plan
to
accelerate
the
development

and
deployment
of
cost‐effec7ve
low
carbon

technologies

•  Communica5on
on
Inves5ng
in
the
development
of

low
Carbon
Technologies (COM(2009) 519 Final) =
explains
what
we
need
to
finance
and
how
much
it

will
cost

•  Technology
Roadmaps (SEC(2009) 1295) = wri=en
in

consulta7on
with
stakeholders
and
meant
to
guide

the
implementa7on
of
the
European
Industrial

Ini7a7ves



11
 The technology roadmap for bioenergy

•  Industrial
sector
objec5ve:


To ensure at least 14% bioenergy in the EU
energy mix by 2020, and guarantee GHG
emission savings of 60% for bio-fuels and bio-
liquids under the sustainability criteria of the
new RES directive
Bring to commercial maturity the currently most
promising technologies and value-chains, in
order to promote large-scale, sustainable
production of advanced biofuels and highly
efficient heat & power from biomass.

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 The technology roadmap for bioenergy
Ac5ons
 Cost

M€

1.
Op7misa7on
of
the
most
promising
 7900

value
chains
via
thermo‐chemical
and

biochemical
pathways
=>
collabora7ve

programme
of
demonstra7on
and
first‐
of‐this‐kind
industrial‐size
plants

2.
Support
ac7vi7es
on
biomass
feedstock
 600

assessment,
produc7on,
management

Cooperation with and
harves7ng
for
energy
purposes

Brazil being 3.Iden7fica7on
and
development
of
new
 400

contemplated but value
chains

not specified
TOTAL
 9000


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Growing concerns about sustainability
in the up-scaling of bioenergy use

•  Sustainable biomass production

•  Replacement of tropical rainforest by
energy crop plantations
•  Greenhouse gas emissions from
biomass producing and processing
•  Social issues i.e. land rights and
labour conditions

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→ Formation of global markets for biofuels
→ increased production of biofuels (scaling up)
→ social and environmental concerns
→ new views about impacts (direct and indirect)

•  Deforestation
•  Greenhouse gas emissions
•  Pressure on natural resources
•  Destruction of eco-systems and their services
•  Competition with food production
•  Social conditions in areas of biofuel production

15
Initiatives on biofuels sustainability
(examples)

•  Cramer Commission (NL)

•  Round Table on Responsible Soy Association (RTRS, AR)
•  Better Sugar Initiative (BR)
•  Renewable Transport Fuel Obligation (RTFO, UK)
•  Roundtable for sustainable biofuels (RSB, CH)
•  German draft biomass sustainability regulation / ISCC (DE)
•  Roundtable on sustainable Palm oil (RSPO, MY)
•  INMETRO (BR)
•  SEKAB / UNICA (SE, BR)
•  Mozambique Govt., GTZ-ProBEC

16
Roundtable table on sustainable biofuels
international initiative bringing together stakeholder
concerned with ensuring the sustainability of biofuels
production and processing
•  Farmers and growers of biofuel feedstocks
•  Industrial biofuel producers
•  Retailers/blenders & the transportation industry
•  Banks/investors
•  Rights-based NGOs (incl land, water, human, and labour rights)
•  Rural development and food security organisations
•  Environment and conservation organisations
•  Climate change and policy organisations
•  Trade unions
•  Smallholder farmer org and indigenous peoples' org/ community-based civil
society organizations
•  Intergovernmental organizations (IGOs), governments, standard-setters,
specialist advisory agencies, certification agencies, and consultant experts

17
Criticism: poor developing countries as sources of:

•  Cheap land (assuming plentiful availability)

•  Cheap labour (therefore inexpensive to
implement measures)
•  Suitable climate conditions (assuming large
water availability)
•  Weak legislation and regulations (assumes
rapid decisions)

Criticism of Ian Bryceson and other researchers

18
Biofuels and neo-colonialism

“Eco-friendly” ethanol fuel for big 4WD Volvos

and racy Saabs in Sweden that replaces
Tanzanian coastal forests with Swedish-owned
sugar plantations, that consumes huge quantities
of scarce water, that pollutes soil and coral reefs,
that violates the traditional land-rights of poor
people and threatens their food security. This is
indeed violation of human rights, or else what
should we label this?

Source: Prof. Seif Maliondo, Prof. Salim Madoffe, Dr. Faustin Maganga, Dr.
Elifuraha Mtalo, Dr. Fred Midtgaard and Prof. Ian Bryceson

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A number of studies address land grabbing in Africa

Kenya: Munguti (2008), Mathenge (2009)

Madagascar: Jung-a et al. (2008), Olivier (2008),
Hervieu (2009)
Mozambique: AIM (2007), IRIN (2007), Cotula(2008)
Sudan: Hazaimeh (2008), Rice (2008)
Tanzania: ABN (2007), Haki Ardhi (2008), Sulle
(2009), Madoffe et al. (2009), Benjaminsen &
Bryceson (2009), Benjaminsen et al. (2009)

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Land-grabbing for biofuel plantations in Africa
the concern of international organisations
• ABN (2007). Agrofuels in Africa. 36 pages.
• FAO (2008). Biofuels: prospects, risks and opportunities. 138
pages.
• GRAIN (2007). Agrofuels special issue. 60 pages.
• IFG & IPS (2007). The false promise of biofuels. 35 pages.
• IIED (2008). Fuelling exclusion? The biofuels boom and poor
people’s
access to land. 82 pages.
• IIED (2009). Land grab or development opportunity? 130 pages.
• IFPRI (2009). Land grabbing by foreign investors in developing
countries: risks and opportunities. 4 pages.
• Oxfam (2008). Another inconvenient truth: how biofuel policies
are
deepening poverty and accelerating climate change. 58 pages.
• Sida SwedBio (2009). Biofuels – potentials and challenges for
developing countries. 4 pages.

21
ISEAL Alliance
supports credible standards and conformity
assessment by promoting credible voluntary
social and environmental certification as a policy
instrument in global trade and development.

•  International Federation of Organic Agriculture Movements (IFOAM)

•  Forest Stewardship Council (FSC)
•  Marine Aquarium Council (MAC)
•  Marine Stewardship Council (MSC)
•  SAN Rainforest Alliance (RA)
•  Social Accountability International (SAI)
•  Fairtrade Labelling Organisation (FLO)

revised code is expected to be launched in 2010

22
The role of “fair trade” certification

•  Guarantees minimum prices somewhat

above global market prices
•  New Swedish report claims little is achieved
for farmers
•  Can work in small scale in nisch markets /
difficult to apply at large scales
•  Better productivity in agriculture gives
more results in alleviating poverty

23
Sustainability criteria being put in place in the EU
•  Environmental impacts along supply chains
•  Greenhouse gas emissions
•  Land availability and change of energy use
•  Competition for resources (land, water…)
•  Market competition
•  Food production X biofuel production
•  Impact on developing countries’ economies

Directive on sustainability related to promotion of energy use

from renewable sources (2009/28/EG)

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The sustainability criteria in the EU
•  Rules in the directive are comprehensive and detailed
•  Criteria described are rich in methods for
accountability and verification
•  Shall apply to biofuels for transport and other energy
uses in the beginning
Etanol, RME, biogas for transport
Talloil, bio-oils (i.e. palm oil, rapseed oil)

•  Work in progress in the member countries to put all in

place in 2010 but a lot of completion is still necessary

25
 When/why shall the criteria
of the directive be met?

1.  To be counted in binding national targets

2.  To be counted as renewable energy
green certificate scheme, etc
3.  To receive any type of support
subsidies, tax incentives, etc

26
 Directive criteria application

•  Reduction of greenhouse gases: 35% to start

•  Protection of areas of high biological diversity
(forests, natural reserves, other special eco-systems)
•  Protection of areas rich in carbon stocks (wetlands,
reforested areas, peat land)
•  Economic agents to meet criteria (mass balance)
•  External evaluation

27
 What is development?

”What has been happening to poverty?

What has been happening to unemployment?
What has been happening to inequality?
If all of these have declined,
then there has been development."

(Seers, 1977)

28
What is sustainable development?

”a development strategy that manages all

assets, natural resources, and human
resources, as well as financial and physical
assets, for increasing long-term wealth and
well-being"

(Repetto, 1986)

29
The gap

30
CO2 emissions
per capita

31
Differentiating cooperation with developing countries

32
Clean energy incubators by country 2007

Note: Excludes China

33
Sizing the bioenergy potential through a systems perspective

POLICIES AND INSTITUTIONAL FRAMEWORK FOR BIOENERGY DEVELOPMENT

Logistics / Logistics /
infrastructure infrastructure DEMAND
LOCAL Distribution
POTENTIAL Collection/processing
District cooling / heating
MARKETS
Road/railroad systems Local
Natural conditions Storage Road / railroad systems Regional
Know-how

Priorities
Industrial synergy Ports International

Biomass sources Conversion

End - uses
Forest residues technology
Biofuels for transport
Agriculture CHP (co-generation) Electricity
residues Integration with other Refrigeration
production systems Heat
Energy crops
Biofuels for transport
Waste
Heat / cooling

34
Summarizing: context of biofuels in EU
•  Biomass is the largest renewable in EU (65-70%) but
other alternatives are growing more rapidly
•  Biomass resources being considered in various
production and use chains (broad treatment of
bioenergy potential)
•  Credibility and acceptance of bioenergy needs to be
restored among the general public
•  EU sees bioenergy as an opportunity to restructure
agriculture policy
•  corporate responsibility still to be further explored –
potential hidden due to concerns on competitiveness

35
Summarizing: concerns on biofuels in EU
•  Pushing for technological development (SET plan)
•  Focus on environmental impacts in sust criteria
greenhouse gas reductions
land use change
eco-systems interference
biological invasion
•  Public debate on social dimensions of expansion of
biomass utilization (dispersed)
•  Social issues being dealt in certification schemes (i.e
fair trade, ISO) and various sustainability criteria
•  Corporate responsibility increasing in context of
climate change and labour issues

36
Ultimate goals to be pursued by CTBE
(related to socio-economic concerns)

  take leadership in development debate in context of bioenergy

opportunities for enhancing modern energy access
  assume key role in capacity building for realizing the bioenergy
potential in developing countries
  consider whole production chain when addressing sustainability
highlighting environmental, social and economic analysis

37
 Instruments for achieving objectives
  strong and high-qualified research with high output in the form of
international publications
  cooperation with international groups not least in other
developing countries
  development of methodologies defining criteria and parameters
with broad relevance for biomass production and use
  databases
  indicators for monitoring change and sustainability
  scenarios (beyond Brazil)
  policy analysis for active input in various international fora

38
Obrigada pela atenção!

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