Certification Module for Low Indirect Impact Biofuels
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1 20 September 2011, Campinas, Brazil Certification Module for Low Indirect Impact Biofuels IEA Bioenergy workshop Land use effects of bioenergy Jasper van de Staaij 0
2 Indirect impact challenges Indirect impacts are one of the key (remaining) challenges of large scale sustainable bioenergy application Most of current work on indirect impacts focuses on sizing the problem assessing the GHG-emissions associated with indirect impacts of biofuels Less is currently done on how biofuels can be produced with a minimum risk of indirect impacts 1
3 The importance of bioenergy Energy efficiency comes first Role of bioenergy in the renewables mix? Plenty of alternatives for electricity But for several sectors few alternatives exist and these sectors are BIG 2
4 The Energy Report - Transition to a fully sustainable global energy system by 2050 While a large sustainable potential for energy crops exist, the challenge is to steer energy crop expansion onto the sustainable areas 13,200 5,423 All values in millions of hectares (Mha) 1,563 2,806 7,777 Source: Ecofys 2, ,920 T o tal glo bal land mass (excluding A ntarctica) Excluded: pro tected land, barren land, urban areas, water bo dies T o tal land co nsidered in the IIA SA study Excluded: current agricultural cro pland Excluded: unpro tected fo rested land Excluded: no t suitable fo r rain-fed agriculture P o tential fo r rain-fed agriculture Excluded: meeting bio diversity, human develo pment, fo o d demand Energy R epo rt po tential fo r energy cro ps Energy R epo rt: cro pland use fo r energy cro ps* C urrent land used to suppo rt livesto ck 3
5 Therefore, current policies focus on addressing unwanted direct LUC The EU RED excludes biofuels grown on land with high carbon stocks or biodiversity But what about indirect land use change.. 4
6 How can we reduce the risk of unwanted indirect effects? Global-level approaches (long term) Prevent unwanted direct LUC, globally and for all sectors Reduce pressure on land from the agricultural sector as a whole by increasing yields, supply chain efficiencies and/or a reduction in consumption Producer-level approaches (short term) Expand production at the project level in ways that minimise the risk of unwanted indirect effects Positive indirect effects: spill over of good agri practices for biofuels to other sectors 5
7 How can the risk of unwanted indirect effects be mitigated at the producer level? To prevent unwanted indirect effects one must prevent displacement of existing production Land-based biofuels Expanding production on unused land with low biodiversity and carbon stocks Expanding production by increasing productivity of existing feedstock production systems in sustainable manners Expanding production by increasing productivity of non-bioenergy systems = integration (Co-products) Non-land based biofuels Unused residues (Aquatic biomass) 6
8 What the market needs Bioenergy is a policy-influenced market Due to ILUC considerable doubt about the actual GHG savings If unaddressed, this can impact the future of markets Therefore, the market needs to credibly demonstrate that it can deliver sustainable biofuels without unwanted indirect effects 7
9 What policy makers need Policy makers need the means to demonstrate their policies realise significant GHG savings, including indirect effects Distinguish biofuels produced with a low risk of indirect effects -> Certification module for Low Indirect Impacts of Biofuels 8
10 Certification Module for Low Indirect Impact Biofuels 9
11 Partners 10
12 Project goal Develop a methodology to cost-effectively and credibly certify biofuels with a low risk of unwanted indirect effects 11
13 What the project does Develop field testing version of certification module Test certification module in 4 pilots Improve certification module Good practice guidelines for project developers for each solution type 12
14 Overview pilots I. Sugarcane cattle integration Brazil USP II. Palm oil yield increase Indonesia WUR + WWF-indo + III. Jatropha on unused land Mozambique WWF-mozambique IV. Used Cooking Oil South Africa RSB + Biogreen 13
15 Central ILUC principle in the certification module Displacement of other production is what can cause indirect impacts Therefore, preventing displacement by additional energy crop production is central to avoiding unwanted indirect effects Unused land Yield increase Integration models Residues...others may be added (suggestions welcome!) 14
16 Verifying additional production - Key challenge for effectiveness and transaction costs If projects are to minimise risk of unwanted indirect effects, they must be additional, or displacement still occurs But, Demonstrating additionality in carbon markets has very high transaction costs There will never be 100% certainty on the counterfactual Therefore, the LIIB certification module works with standardized approaches that best fit the solution type No need for expensive additionality test by project developer, but standard acceptance requirements Methodology for baseline is provided to project developer Certification burden currently being tested, expected to not be higher than today s voluntary schemes 15
17 Example: Unused land Project acceptance (RED criteria) Not used for provisioning services in last 5 years Rotational systems Limited displacement allowed if sustainable alternatives implemented Excess potential of unused agricultural land Areas with growing potential Areas in which unused potential >10 times larger than project area Baseline Zero Eligible for certification All production 16
18 In conclusion Bioenergy key for decarbonising the economy While large sustainable bioenergy potential exists, the challenge is to ensure the sustainable options are realised Low indirect impacts must be demonstrated to ensure future markets and growth opportunities Long term solution is sustainable land use by all sectors In short term, producer models can provide solution The right policies could create a large demand for such good agri practices -> positive spill-over effect 17
19 Further reading Field-testing version Certification Module for Low Indirect Impact Biofuels Working%20Groups/II%20EG/Low%20Indirect%20Imp act%20biofuels%20certification%20module%20- %20Field%20testing%20version%20- %20July% pdf Responsible Cultivation Areas - Identification and certification of feedstock production with a low risk of indirect effects ivation_areas.htm 18
20 Thank you - Remaining questions Jasper van de Staaij j.vandestaaij@ecofys.com 19
21 20 APPENDIX
22 Responsible Cultivation Area (RCA) Methodology Identification module 21
23 Four-step process 1. Site Pre-Selection Identify promising areas HCV Carbon stocks Land rights Displacement effects Suitability 2. Desk-Based Site Assessment Evaluate suitability based on existing data Define information needs field work HCV Agricultural Carbon Suitability stocks Land rights Sustainability Displacement Availability/Displacement effects Suitability 3. On-Site Assessment Ground Truth Earlier Findings Fill in Knowledge Gaps HCV Agricultural Carbon Suitability stocks Land rights Sustainability Displacement Availability/Displacement effects Suitability 4. Evaluation Evaluate whether site qualifies as RCA HCV Agricultural Carbon Suitability stocks Land rights Sustainability Displacement Availability/Displacement effects Suitability 22
24 Pilot studies West Kalimantan Focus on land without provisioning services Brazil Focus on sustainable increase of land productivity + 23 Source: O Hare
25 Pilot results: Kalimantan With kind permission of WWF Indonesia 24
26 Land cover of West Kalimantan 25
27 C-stocks exclude all forested areas 26
28 C-stocks exclude all peat land Peat Land 27
29 HCV s exclude protected areas Peat Land National Conservation Areas International Conservation Areas 28
30 Displacement exclude existing plantations and other uses Other Uses Plantation Concession with existing Oil palm trees 29
31 Land availability Inside development areas 30 Development Areas (Out of Forestry Areas) Conversion Forest Areas
32 Agricultural suitability exclude non-suitable areas Not Possible with High Input 31
33 Remaining areas and concession boundaries RCA 3: Not Possible Possible 32
34 Infrastructure / Focus Area 33
35 Location I 34
36 Location II 35
37 Location III 36
38 Location IV 37
39 Location IV 38
40 Ecofys Facts & Figures 1984: Founded as spin-off from University Utrecht Consulting in renewable energy, energy efficiency, climate change 220 employees across 6 offices NL: Utrecht (Headquarter) DE: Berlin, Cologne UK: London CN: Beijing US: Portland Over 500 clients served across 50 countries The IPCC reports and processes, winning the Nobel Peace Prize in 2007, have been supported by over ten Ecofys experts 39
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