EU Biofuels Policy fair, coherent with development objectives? Laura Sullivan ActionAid International July 2013

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1 EU Biofuels Policy fair, coherent with development objectives? Laura Sullivan ActionAid International July 2013

2 Context Renewable Energy Directive (RED) approved in % target for renewable energy in transport by % of target to come from 1G biofuels (MS plans) = Effectively a biofuels target

3 Some facts 1. As a result of the 10% biofuels target in the RED, the EU will more than double our consumption of biofuels by % all land grabs attributable to biofuels (WB, UN Special Rapporteur); 3. 6m HA of land acquired for biofuels production by 98 EU companies in Sub Saharan Africa from (AAI) 4. The amount of grain required to fill one car fuel tank with biofuel would feed a child for 200 days (AA UK) 5. If we used all the world s food crops, we would still only meet 9-13% global energy demand (OECD) 6. In 2011, the EU biofuels industry received 10bn in subsidies as against 6.5 billion invested to establish the EU s production facilities. 7. By 2030 we need to up food production by 50% (FAO) If we didn t increase demand by putting food in cars, would we have this supply side problem?

4 A quick reality check It s a problem of local governance + starvation is home-made Reality: it s a double edged sword! Hunger is not just home made. It s not just biofuels Reality: Indeed but biofuels a big part of the problem! It s not just Europe (and if we don t do it, China will) Reality: indeed but Europe is a big part of the problem This is providing jobs and rural development Reality: evidence shows jobs in Europe Small scale projects work Reality: indeed, but this has nothing to do with the targets Europe is not importing biofuels from these countries Reality: we only have figures up to 2010 and we need to look at land allocation not export/import figures

5 Europe not importing from the world s poorest countries? WEF Report: Africa a significant exporter to the EU by 2020

6 Focus on land: Why does it matter? 1. Land is about life, about livelihoods 2. It is a key factor of production linked to Right to Food 3. Land ownership means security, status, credit 4. Smallholder farmers the backbone of the economy in most developing countries 5. In Africa, women are responsible for 60-80% of all food production, but own < 10% of land 6. They are already struggling: but there is a new challenge on the horizon: land grabs

7 Why are land grabs happening? According to the World Bank (2010) 1. Food crops (37%) 2. Biofuels (21%) 3. Cash crops (21%) Others: extractive industry, tourism

8 Land grab cases 1. Dakatcha Kenya/Italian company NII producing Jatropha/ people threatened by move/ HA; status: project dropped by government 2. Kisarawe Tanzania/UK company Sun Biofuels producing jatropha/11 villages affected/8,200 HA; status: company went bankrupt but sold land to another company 3. Ngith Senegal/Italian company Senethanol plan to produce jatropha/37 villages affected/ HA; status: ongoing

9 The myth of marginal land A common myth is that biofuels are not in competition with food as there is plenty of available land that is unused There is rarely any valuable land that is neither already being used in some way, nor providing an important environmental service - CFS It is difficult to even identity unused land, since reliable data is lacking on land-use complex land tenure structures is an additional challenge in many African countries - IEA Production on marginal land has often proven to be economically inviable, due to the low yields it produces, so more fertile land is often used - AAI

10 Focus on food prices 1. What is the problem today? : Price of key staples like wheat doubled : Further rise in food prices, in Gambia 700,000 people affected Particular problem for people who spend on average 60% of income on food and in food importing countries Food prices affected by many factors: biofuels plays one significant role among others but it matters because it can be easily changed

11 Focus on food prices 1. What is the problem tomorrow? Rising food demand (changing diets, rising population, expanding biofuels driven by targets and subsidies) Prices from expected to be 27% higher for wheat, 48% for maize, 36% oil seeds (AA UK) Biofuels create a further food energy link: when oil prices high and crop value in energy market is higher than in food market, it goes there

12 In summary 1. At a time of rising world population and hunger, biofuels policies substitute food for fuel and affect food prices 2. At a time of ongoing land struggles, biofuels policies are fuelling land grabs 3. EU is not effectively combatting climate change as it is not accounting for all greenhouse gases: many biofuels counted under RED are worse than fossil fuels 4. First generation biofuels industry still receiving billions in subsidies under the RED This policy is not socially, environmentally or economically sustainable and we can easily change it, so why are we so keen to support it?

13 Hope on the horizon? International level: 2011 report from ten International Organisations calls for end to mandates and subsidies globally on basis of impact on food price volatility but so far ignored. EU level: EC proposes to cap the amount of food crops that can count towards RED at 5% in 2012 and calls for full phase out of first generation by 2020 but EP now considering weakening that

14 EU institutions on biofuels/iluc EP DEVE the best vote outcome so far, but still not coherent: voted down the phase out of the cap of 5% by 2020 ITRE very weak outcome with 6.5% target and no ILUC ENVI set to vote tomorrow Council Latest debate soft on 5% target EC Still behind the 5% target but latest report on social impacts is unacceptable

15 Questions This a chance for a solid win on fair policies 1) Short-term action: You have a chance to change this up to Sept 10 vote what is your party saying on? What will you do? You need to support the 5% now and demand a full phase out of damaging targets and subsidies by ) Medium-term action: In 2014 the EC is required to review the overall RED: is this another chance to tackle the origin of the problem? 3) Long-term action: how can you work with the likes of the US, Brazil and India to push for global changes? What about supporting the Voluntary Guidelines on land tenure in EU and beyond? 4) Research: on alternatives including challenging energy consumption? On cases of investment by EU companies good and bad?

16 Thank you! Laura Sullivan Head of European Advocacy ActionAid International