A transformational resource efficiency program for Brazil s beef supply chain

Transcription

1 A transformational resource efficiency program for Brazil s beef supply chain Presentation of final results 12 April 2016

2 Opening remarks Simon Retallack Latin America Director, Carbon Trust 2

3 Carbon Trust has accelerated sustainable, low carbon development for 15 years What we do Advice We advise businesses, governments and the public sector on their opportunities in a sustainable, low carbon economy Footprinting We measure and certify the environmental footprint of organisations, products and services Technology We help develop and deploy low carbon technologies and solutions, from energy efficiency to renewable power What we have achieved Customer cost savings Helped customers save $8bn Carbon savings Helped customers save 54m tons of C0 2 We employ our integrated service offering to support clients around the world Our employees work around the world from offices in the London, Beijing, Johannesburg and Mexico City We fully reinvest our profits into advancing our mission to accelerate the move to a sustainable, low carbon economy 3

4 170+ staff working for our clients globally London Beijing Mexico City Rio de Janeiro Johannesburg Carbon Trust office Geographical scope of recent client work 4

5 We have delivered 14 projects to date in Brazil ORGANISATION PROJECT TOPIC Time of use electricity pricing assessment Electricity system resilience assessment for Rio Olympics National low carbon technology innovation strategy Building performance labelling Energy efficiency leadership by the public sector Impact assessment manual and training course for energy policy appraisal Distributed energy policy Best practice in energy efficiency finance Designing a Product Footprinting and Certification Scheme

6 Policy in Climate Smart Agriculture India and Kenya We examined climate-smart agriculture (CSA) in India and Kenya, and highlighted the differences between agriculture and other clean-technology sectors and the main challenges facing the two countries. Agriculture is a major employer and source of economic activity in developing countries but faces many environmental, institutional, financial, and behavioural challenges that are exacerbated by climate change and rural poverty. Climate-smart agriculture is an approach that aims to integrate social, economic and ecological objectives to increase agricultural yields, boost profits, reduce local pollution, address poverty, enhance climate resilience and reduce greenhouse gas emissions. CSA differs from other clean technology sectors because it tends to rely on donor and government involvement and depends heavily on behaviour change, education, and institutional reform, but nevertheless represents a commercial opportunity for SMEs. Drip irrigation, food storage, and agroforestry are three innovative agricultural activities profiled in this case study; there are many other SME opportunities that align with CSA goals. 6

7 Policy Incentives for Cogeneration in Colombia s sugar cane industry Capacidad: 40MW Factor de planta: 55% Horas de operación: 4800 Deuda: 65%, término de 15 años Tasa de interés: 11,4% Costo de capital: 8,5% WACC: 7,9% ENFICC: 0% 7

8 Footprinting We footprint products & services Developed world s first footprinting standard PAS ,000 products measured 6,000 certified footprints with combined sales of $5bn per annum 8

9 Footprinting We have footprinted and certified a range of international agricultural products Company Aldi ABF British Sugar, Tate and Lyle Coca-Cola Colors Product Australian olive oil Kingsmill Bread Sugar (China & UK) Coke cans/bottles Fruit Bord Bia, Irish Food Board We provided tools to help farmers and processors identify carbon hotspots, enabling Bord Bia s beef carbon footprint to fall from 23kg CO2-e per kg of liveweight to 14.4kg CO2-e. Beef production reduced its GHG output by an equivalent of 9.4% every decade Premier foods Hovis Bread Innocent Smoothies Mehadrin Tnuport Oranges, Grapefruit New Zealand Wine Company Mobius Marlborough wine PepsiCo Tropicana, Quaker Oats, Walkers crisps, R Wines French wine Co-operative Strawberries Marks and Spencer Asparagus and chocolate Sainsbury's Tesco Various Orange juice, milk, bread, tomatoes, potatoes The first Irish dairy company to receive the Carbon Trust Standard 9

10 Carbon management Our experience in the agriculture sector 10

11 Programmes Designing and implementing large-scale best practice technology deployment programmes Common barriers How we help Lack of awareness Advice - Energy saving expertise Lack of confidence Implementation Support Energy efficiency made easy Lack of funds Energy efficiency finance scheme

12 Programmes Carbon Trust s UK 0% interest energy efficiency scheme Launched in 2003 and managed by the Carbon Trust, channels funds from the Department of Energy and Climate Change (DECC) One of the most successful dedicated energy efficiency finance schemes in the UK $300 million to date to 7,000+ businesses through a revolving fund (capital replenished by repayments for re-investment) Will save UK businesses over 2MtCO2 and $560 million on energy bills Eligibility: any non-domestic business with <250 employees; credit score above a certain threshold Payback time limit: 4 years Min. loan size: $4,600 and Max. loan size: $600,000 in NI, $300,000 in Wales Accompanied by a national awareness raising, marketing campaign and advice scheme.

13 Programmes We are adapting lessons learnt from the UK experience to the design of schemes internationally Programme we have designed, secured funding for and are helping implement: South Africa: Private Sector Energy Efficiency Programme - $13 million Programme we have designed and secured funding for: Mexico: SME Energy Efficiency Programme - $126 million Programme we have designed and are securing funding for: Peru: Private Sector Energy Efficiency Programme - $65 million Programmes we are designing now: Panama Secretaria de Energia India Bureau of Energy Efficiency, Ministry of Power, Ministry of Finance

14 Resource efficiency in Brazil s beef sector Project origins Working with Brazilian public and private stakeholders, we identified the beef supply chain in Brazil as the greatest opportunity for resource efficiency and carbon emission reductions in Brazil We found that a resource efficiency technical assistance & finance programme represented the best way of realizing this opportunity 14

15 The beef supply chain contributes to about 42% of Brazilian emissions (directly and indirectly) Mudanças no uso da terra Pecuária de corte Indústria Resíduos Energia Agricultura - pecuária de corte Brazil s beef production represents the largest opportunity to reduce GHG emissions in Brazil, and at a low cost per ton. Fonte: (SEEG, 2013); (INPE, 2010) indica que 572 MtCO2 das 813 MtCO2 emitidas por mudanças de uso da terra em 2008 podem ser atribuidas à pecuáriia. 15

16 Brazilian beef output is expected to increase from 10.2 Mt in 2013 to 13.6 Mt in 2023 Source: Adapted from (ABIEC, 2014) and (Abreu, 2011). Note: The value of the internal market is an estimate which assumes the same value/kg proportion seen in beef exports Inaction will lead to larger impacts 16

17 Global consumers are becoming more concerned about the impacts of the products they buy To remain globally competitive Brazil s Beef Supply Chain has to become more GHG efficient 17

18 Project aims Design a scalable resource efficiency programme for Brazil s beef supply chain leading to: Large scale implementation/acceleration of best practice across the chain Increased productivity/competitiveness for players in the chain Increased market for low carbon technologies in Brazil and globally Improvement of the image of Brazilian beef globally Significant GHG emission reductions helping Brazil fulfil its NDC

19 Programme design phase Design Phase (in delivery) Set-up Phase Pilot Phase Scale-up 1. Consulting all relevant stakeholders to: Analyse current situation Best practice solutions Major barriers limiting adoption Existing measures to overcome barriers Identify interventions that would add most value 2. Estimate the cost and benefits of a programme 3. Test proposition with local stakeholders Establish institutional arrangements Prepare all physical and technical structure that allows us to start the pilot Kick-start delivery across a sample of the supply chain in a specific region. Test the programme s effectiveness and learn how to optimize the delivery Incorporate lessons and expand the programme offer of finance and TA to a wider audience. Leverage permament commercial sources of funding 4. Build the business case for international financiers

20 Stakeholders consulted

21 Whilst reasonable steps have been taken to ensure that the information contained within this publication is correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warranty and make no representation as to its accuracy and accept no liability for any errors or omissions. All trademarks, service marks and logos in this publication, and copyright in it, are the property of the Carbon Trust (or its licensors). Nothing in this publication shall be construed as granting any licence or right to use or reproduce any of the trademarks, services marks, logos, copyright or any proprietary information in any way without the Carbon Trust s prior written permission. The Carbon Trust enforces infringements of its intellectual property rights to the full extent permitted by law. The Carbon Trust is a company limited by guarantee and registered in England and Wales under company number with its registered office at 4th Floor Dorset House, Stamford Street, London SE1 9NT. Published in the UK: The Carbon Trust All rights reserved.