Long term strategies on sustainable biomass imports for European biobased markets

Transcription

1 24/11/2016 Long term strategies on sustainable biomass imports for European biobased markets Luc Pelkmans (VITO) Bioenergy Australia 2016 Conference November 2016, Brisbane

2 Background» Imports for bioenergy in the EU play a role, will likely increase in the future» Mainly in countries with limited domestic biomass supply (UK, NL, BE, DK)» Role is probably limited to <10% of biomass supply (see next slide)» Most controversy is about this share» Increasing role of lignocellulose in future (for 2G biofuels, biobased economy) 24/11/2016 2

3 Pellets production & tradeflows 24/11/2016 3

4 Role of biomass imports Baseline scenario, Green-X calculations, BioSustain 2016 Preliminary, do not cite 24/11/2016 4

5 The BioTrade2020+ project» Supporting a Sustainable European Bioenergy Trade Strategy» Focus on lignocellulosic biomass (forest biomass, agri residues)» Case studies in North America (SE US), South America (Brazil, Colombia), East Europe (Ukraine), SE Asia (Indonesia) and East Africa (Kenya)» Project supported by the Intelligent Energy for Europe (IEE) programme of the European Commission» Project duration: March 2014 August 2016» Partners:» In cooperation with IEA Bioenergy Task 40 Sustainable biomass markets and international bioenergy trade to support the biobased economy 24/11/2016 5

6 Project structure 24/11/2016 6

7 Objectives of WP5 in BioTrade2020+ Define solid long term strategies on how to include sustainable biomass imports in European bioenergy markets Existing situation: which policies impact biomass trade (in EU and sourcing regions)? SWOT of different export regions Starting from Risks and opportunities of biomass trade For import regions (focus EU) For sourcing regions (N-Am, S-Am, Africa, S-E Asia, East Europe) Practical barriers for trade Define key principles of sustainable biomass trade Explore policy options to steer / facilitate sustainable biomass trade 24/11/2016 7

8 Stakeholder consultation!!» Workshops» Telcons» Advisory Board Meetings» On-line survey (April - June 2015)» 127 participants» from 35 countries 24/11/2016 8

9 Key principles for sustainable trade Statement Trade should be based on sustainable and legally acquired biomass sourcing (traceable and verifiable). Markets should be transparent, with clear reporting and monitoring systems. Full value chain (from feedstock production up to end conversion) as a basis for performance assessments (e.g. energy, GHG). Trade should follow the principles of fair trade, i.e. all actors in the value chain receive a fair share of the benefits. Markets should be open (WTO compliant), and there should be no discrimination in market access. Local use of biomass should have priority over trade. Displacement as a result of trade demand should be avoided. Displacement/indirect effects in the sourcing regions should be taken into account in support mechanisms for biomass/bioenergy. % agree or totally agree 97% 90% 88% 86% 80% 76% 75% 24/11/2016 9

10 Barriers for trade Statement % important and very important Insufficient knowledge of public/media/policy makers 81% Bad public image due to claims of unsustainable practices for biofuels 80% Different sustainability requirements in EU Member States for solid 78% biomass (not EU-wide) Differences in sustainability governance of agriculture and forestry 74% policies (legislation and enforcement) by country/region Lack of sustainability criteria for fossil fuels creates an unlevel playing 69% field Changing sustainability requirements creates uncertainty for 67% stakeholders Sustainability criteria only required for energy and not for other 66% applications of biomass Lack of roads and port infrastructure in sourcing regions 65% Proliferation of certification systems 24/11/ %

11 Long term strategies (bioenergy & trade)» Consistent policy framework & long term vision» Policy framework needs to be consistent for a positive investment climate» Uncertainties and stop & go policies are detrimental for investments» Consider investors timeframe (10-20 yrs)» Importance of a long term policy vision (>20yrs)» Consistency between policy fields (agriculture, forestry, environment, climate, energy, trade, economy )» Project financing & investment models» Provide tools to increase access to finance, e.g. through providing guarantees, low-interest loans» Develop knowledge (through research projects) and spread knowledge through the support of demonstrators and cooperation platforms. This also helps reduce risk perception. 24/11/

12 Long term strategies» Sustainable biomass production systems» Sustainability frame to be applied to the management of forest or agriculture overall, independent of the end use of its products» Sustainability performance is key for social license to operate» Transparency and controllability of the chain of custody» Requirements need to be workable in practice (cost of doing nothing)» Consistency in sustainability requirements along countries and markets (e.g. biofuels, electricity, heat, materials in the longer term)» Build on existing systems (e.g. EU Timber Regulation)» Risk-based approach, bilateral agreements with sourcing regions» Cooperation/good practice exchange towards sustainable practices in biomass production and harvesting, and capacity building 24/11/

13 Long term strategies» Market access & WTO rules» Open markets provide more flexibility in feedstock sourcing and can stabilize prices» Equal treatment of domestic and imported material» Sustainability requirements can be justified in terms of WTO compliance (if not protectionist)» Reduce consumption of fossil fuels» Complexity of bioenergy should not be excuse to do nothing and continue using fossil fuels» Fossil fuels are by definition unsustainable and currently don t have to demonstrate their sustainability performance => unlevel playing field» Need dedicated phase-out policies for fossil fuels, e.g. carbon tax, 24/11/

14 Long term strategies» Support sustainable mobilisation of biomass» Opportunities for concurrent benefits (social, environmental, )» Cooperation/good practice exchange with other regions in the world to facilitate progress in agricultural productivity, forest management and waste management, low iluc approaches» Monitor direct and indirect impacts on markets (EU and outside)» Not only modeling» Demonstrate innovative approaches to avoid or deal with iluc and identify cases where iluc is low or even positive 24/11/

15 Long term strategies» Value chain assessment & resource efficiency» Assessments based on the full value chain (e.g. GHG emissions)» Aim for high energy efficiency and reduced energy use» Trias energetica: first step is always to increase efficiency and reduce demand» Biorefinery approach: look for synergies between energy and (new) material markets» Inform the public debate» Conflicting messages in the media => provide clarity for policy makers & the public, fact based!» More clarity on carbon accounting principles 24/11/

16 Long term strategies» Biomass quality and commodities» Variability of biomass quality is an issue, particularly for residues, herbaceous material» Turn lignocellulosic material into commodities» Compatibility with conversion technologies» Technical standards (international level)» Facilitates contracting, opens markets, access to finance» Governments can stimulate this process 24/11/

17 Conclusions» The role of extra-eu imports is estimated at 10% of biomass use of energy. Still this is the most debated part, so dedicated attention is needed» Key principles for sustainable trade are mostly about sustainable biomass production, accounting for value chain energy use /GHG emissions, no discrimination in market access, priority for local use of biomass & keep track of displacement effects» Main barriers for trade are public image/insufficient public knowledge, different sustainability governance & sustainability requirements per country/market and lack of infrastructure.» Long term strategies for biomass trade should be embedded in overall bioenergy strategies, taking into account that trade will be part of it. 24/11/

18 Thanks for your attention! Ir. Luc Pelkmans Project manager biobased economy VITO Technical Coordinator Tel task40.ieabioenergy.com 24/11/