Tat Smith. University of Toronto & IEA Bioenergy Task 43 Biomass Feedstocks for Energy Markets

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1 Welcome from IEA Bioenergy & Reflections on what has transpired in the year since the Quebec event in October 2012 Tat Smith University of Toronto & IEA Bioenergy Task 43 Biomass Feedstocks for Energy Markets The Transatlantic Trade in Wood for Energy: A Dialogue on Sustainability Standards and Greenhouse Gas Emissions October 2013 Hilton Desoto Savannah Savannah, Georgia USA 1

2 IEA Bioenergy's vision is to achieve a substantial bioenergy contribution to future global energy demands by accelerating the production and use of environmentally sound, socially accepted and costcompetitive bioenergy on a sustainable basis, thus providing increased security of supply whilst reducing greenhouse gas emissions from energy use. 2

3 IEA Bioenergy Task 40: Sustainable international bioenergy trade Core objective of IEA Bioenergy Task 40: to support the development of sustainable international bioenergy markets Key working fields: Securing sustainable biomass supplies Sustainability & certification Trade, market and demand dynamics Transport, logistics and trade Outreach and dissemination Membership: Currently 10 EU Countries (Netherlands task leader) + Brazil, Canada and US 3

4 Task 43 will address issues critical to mobilizing sustainable bioenergy supply chains, including biomass markets and the social, economic and environmental consequences of feedstock production and supply. The objective is to promote sound bioenergy development that is driven by well-informed decisions in business, governments and elsewhere. 4

5 Reflections on what has transpired in the year since the Quebec event in October

6 Reflections on what has transpired in the year since the Quebec event in October 2012 The Science-Policy Interface on the Environmental Sustainability of Forest Bioenergy This publication reports on the discussions and opinions expressed during an expert workshop on the environmental sustainability of forest bioenergy in Canada, held in Quebec on the 3-5 October The workshop was organised by the International Energy Agency Bioenergy Task 40 (International Sustainable Bioenergy Trade) and Task 43 (Biomass Feedstocks for Energy Markets), the IEA Bioenergy Executive Committee, the Faculty of Forestry, Geomatics and Geography of Laval University (Quebec, Canada), and Natural Resources Canada, with collaboration from the Global Bioenergy Partnership and the Canadian Council of Forest Ministers (CCFM). Participants engaged in dialogue critical for the formulation of rational policy to achieve sustainable forest bioenergy production systems. 6

7 Reflections on what has transpired in the year since the Quebec event in October 2012 According to the organizing committee, there was a general understanding that: The format of the workshop was successful in addressing science, policy, NGO and industry concerns, with an open dialogue among participants. Overall sustainability governance and certification will only be widely implemented if there is a sound business case underpinning forest bioenergy supply chains. Certification might be a valuable tool for client acceptance of bioenergy. There is a need to address GHG emissions in terms of carbon balance over time. The framework of sustainable forest management should include bioenergy, with the addition of GHG accounting within certification systems. Although most discussions focused on the boreal forest, it was agreed that the results were applicable to all forest types with some differentiation. In the case of Canada, sustainability of forest management should be understood in the context of natural disturbances (e.g. fire, insect epidemics). There was recognition that there will be additional international processes addressing forests, and there is a need for convergence among these processes. The future role of bioenergy must be placed in the context of the overall bioeconomy. This event allowed participants to obtain a first-hand view of Canadian forest management as carried out in Quebec. Moreover, it allowed European regulators to understand the Canadian situation better than they could through correspondence or holding meetings in Europe. 7

8 Global wood pellet trade flows > 10 ktonnes Source: Lamers P, Marchal D, Heinimö J, Steierer F. (forthcoming) Woody biomass trade for energy. In: Junginger M, Goh CS, Faaij A (eds). International Bioenergy Trade: History, status & outlook on securing sustainable bioenergy supply, demand and markets. Springer, Berlin. 8

9 Reflections on what has transpired in the year since the Quebec event in October 2012 Continued policy evolution, including: (EC) European Commission Report from the Commission to the Council and the European Parliament on sustainability requirements for the use of solid and gaseous biomass sources in electricity, heating and cooling. SEC(2010) 65 final, SEC(2010) 66 final. COM(2010)11 final. EU-RED Article 17: Raw materials for biofuels must not come from land that had one of the following statuses in 2008 and no longer has that status: primary forest, protected area, highly biodiverse grassland, areas with high stocks of carbon, or peatlands. EU-RED Article 18 Member States shall require economic operators to show that the sustainability criteria have been fulfilled. Economic operators therefore have to use a mass balance system which allows consignments of raw material or biofuel with differing sustainability characteristics to be mixed, and they have to arrange for an adequate standard of independent auditing of the information. Regarding imports of raw material or biofuels, the EU shall seek to make bilateral or multilateral agreements with third countries that guarantee compliance with the sustainability criteria; the Commission may then decide that those agreements demonstrate that biofuels produced from raw materials cultivated in those countries comply with the sustainability criteria. 9

10 Continued policy evolution, including: EU-RED related European Commission Proposal for a Directive of the European Parliament and of the Council on sustainability criteria for solid and gaseous biomass used in electricity and/or heating and cooling and biomethane injection into the natural gas network. [XXX] draft. Available from [accessed 21 August 2013]. Leaked then withdrawn Continued opportunity to inform policy. 10

11 Continued policy evolution, including: UK Department of Energy and Climate Change Government Response to the consultation on proposals to enhance the sustainability criteria for the use of biomass feedstocks under the Renewables Obligation (RO). Crown copyright London, UK. URN 13D/027. Support practical implementation of strict sustainability requirements on solid biomass Confirmed the long term viability of biomass in the UK New criteria become mandatory for generators > 1MWe capacity from April 2015 Tougher GHG lifecycle targets New sustainable forest management criteria based on the UK Timber Procurement Policy (UK- TPP) principles which follows guidelines from the Central Point of Expertise on Timber (CPET) CPET requires verification of legal and sustainable wood fiber raw materials. Two types of evidence are accepted: Category A and Category B. Category A: raw materials come from Chain of Custody Certified supply chain under either FSC, PEFC or SFI. Under CPET, a minimum of 70% of the materials must come from certified forest sources. Sawmills providing residues (i.e. sawdust, chips, etc.) must also be COC certified. Category B raw materials come from sources that do not have the Chain of Custody certification but can be verified legal and sustainable by meeting CPET s standards as outlined in three sets of criteria -- (Checklist 1, 2, and 3). These checklists are very similar to the forest certification data requirements under FSC, SFI and PEFC. 11

12 Are sustainability claims adequate for Canadian exports to EU markets? 94% Crown forests Managed Crown forestland in Canada Non-certified forest: 31% of managed forest Certified forest: 69% of managed forest Path 1 Path Path 2 2 Provincial policies and guidelines Uncertified, but verified to comply with BMPs Voluntary certification: CSA, FSC, SFI? SFM certified, fibre sourcing New EU Standards (EU RED, EU TR )? EU markets Graphics: Jessica Murray, University of Toronto. Adapted from: Kittler et al

13 Are sustainability claims adequate for USA exports to EU markets? Local BMPs Voluntary certification EU standards Forestland in southeastern USA FSC 1% ATFS SFI 6% 10% Path 1 Path 2 Certified SFM Certified fibre sourcing?? Non-certified 83% Path 4 Path 3 Unverified compliance with BMPs where they exist Uncertified but verified to comply with BMPs where they exist?? EU markets Path 5? No local BMPs or other? Adapted from: Kittler et al

14 Reflections on what has transpired in the year since the Quebec event in October 2012 Key questions remain What is the state of knowledge regarding site-specific and global effects of international bioenergy supply chains on SFM & GHG emission reductions? Is policy adequately informed by the scientific state-of-art? How well does the mix of governance mechanisms achieve SFM, GHG emission reductions, and reliable labelling of sustainable products in the market place? Is international supply chain governance robust and fair? What process is required to improve governance? 14

15 Welcome!

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