Integration of renewable energy in future sustainable energy systems and cross-cutting collaboration

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1 Integration of renewable energy in future sustainable energy systems and cross-cutting collaboration Integrating bioenergy in a circular economy Sébastien Haye (UNECE 4 th Session of the GERE) 2 November 2017 Strategy Energy Sustainability

2 E4tech: Strategic thinking in sustainable energy International consulting firm, offices in UK and Switzerland Focus on sustainable energy Established 1997, always independent Deep expertise in technology, business and strategy, market assessment, techno-economic modelling, policy support A spectrum of clients from start-ups to global corporations

3 Bioenergy and circular economy have lots in common Reducing dependence on finite/fossil resources and increasing diversity of raw material sources Mitigating climate change Enhancing economic development, new jobs, etc. Concept of biomass cascading 3

4 Many countries/regions are developing both bio-based economy and circular economy strategies Examples: Denmark: Pioneer in circular economy (Kalundborg), but tensions identified between waste and bioenergy policies. Finland and Sweden: Consistent integration of bio-based and circular economy through forest-based loops. Japan: Historical development of circular economy due to resource constraints. Limited bioenergy developments. European Union: Proactive circular and bio-based strategies/action plans promoting cascading use. However, not reflected in present and future Renewable Energy Directive. Bioenergy and circular economy can create both synergies and tensions 4

5 The EU example : how to decarbonise the energy sector in a circular economy context? Both the EU action plan for the Circular Economy and Bioeconomy strategy promote a cascading use of biomass (i.e. energy use comes last) The European Commission issued the first draft of the future RED. No general restriction on direct use of biomass for energy. The 27% RE target is deemed insufficient to fulfil the objectives of the Paris Agreement (Climate Action Network). In IEA s 2 degree scenario, biomass plays a preponderant role (139 EJ by 2050). Is this achievable with a strict implementation of biomass cascading (quantity AND quality)? Does biomass cascading always make most economic/environmental sense? 5

6 An integrated circular bioenergy strategy would bring multiple benefits Increased availability of bio-based raw materials; Additional greenhouse gas savings through increased substitution of fossil material by biomass through cascading use; Reduced risks to food security by prioritizing food and feed uses for edible biomass and energy use for non-edible feedstock with low land-use impact; Increased revenue streams for biomass producers and processors by adding new commercial routes for by-products and residues; Improved diversification of product sources to reduce dependence on a limited number of suppliers. However, flexibility is required on the implementation of biomass cascading Source: Fehrenbach et al. (2017) 6

7 Next steps Research needs Biomass cascading should remain a guiding principle but not become a legal constraint (Biomass Industry Consortium). Policies should use a system-wide approach (rather than a sector-based approach) to understand environmental and economic benefits of different biomass use scenarios. More research is needed to evaluate availability of biomass, marketmediated impacts and counterfactual uses (e.g. RECEBIO study), and consequences of policy decisions on our ability to mitigate climate change while developing sustainable energy and enhance our economies. Upcoming (January 2018): Joint OECD-E4tech publication on synergies and tensions between bio-based and circular economy concepts 7

8 E4tech your partner in sustainable thinking! For more information please visit our website: E4tech (UK) Ltd 83, Victoria Street London SW1H 0HW United Kingdom +44 (0) E4tech Sàrl Av. Juste-Olivier Lausanne Switzerland +41 (0) sebastien.haye@e4tech.com