Biofuels Sustainability Qs: towards solutions Njeri Wamukonya

1. Biofuels Sustainability Qs: towards solutionsNjeri Wamukonya Presented at the High-level Biofuels Seminar in Africa, Addis Ababa, 30July-1 August 2007

2. A fast growing market… Worldwide investment in bioenergy in 2005 were US$2.66 billion, in 2006 it was US$ 21 billion. Governments in developed and developing countries are putting into place bioenergy targets. Main drivers for bioenergy uptake are energy security, climate change and development concerns.

3. … with huge potential But risks

4. Food security 4 cumulative dimensions: Availability, Access, Stability, Utilization

5. Water scarcity

6. Issues/realities • The biofuel industry will prevail due to the forces/incentives and drivers in place • Drivers are multifaceted (CC underlying- but it is MITIGATION –(who has the mitigative obligations?))– and that’s all its about from a CC perspective • What are the risks posed by this driver: is there danger of solving one env problem while creating other env problems

7. Issues/realities • Stakeholders interests can be conflicting (large companies vs women subsistence farmers) • What experiences can and should be transferred? • What pitfalls should be avoided based on past cash-crop experiences? • How can potential threats be circumvented?

8. Challenges (two-fold) • 1: it is important that environmental and social criteria for production of the biomass are met • 2: this criteria should be flexible to achieve maximum yield for biofuels production (but not compromising)

9. Challenges • Hence UNEP and partners are setting up a process for establishing stds for biofuels (starting with vehicles) ; policy guidelines also needed ; enforcement mechanisms/self regulatory • Agreement on a criteria or principles is necessary • Target stakeholders: producer andconsumer • Tool : certification

10. Certification • assures customers that the product they purchase is produced in a sustainable manner • Certification steps: • Application of Stds - locally relevant but also comply with international stds/good practice • Inspection (audit) –assessment to ensure stds are met • Evaluation and results of audit –tracing product to source • Issuance of the certificate if compliance is met - after receiving accreditation then products can be labeled with ‘seal of approval’

11. Team activities towards stds goal • Gather info on existing certification systems that could be adapted `for establishing sustainable biomass production system • 12 different labels were screened in Forestry, Agric, bioenergy for heat and electricity production and trade sector – examining indicators that cover social, economic, ecological and general criteria

12. General findings • Agric: - no certification system for biomass production specifically for bioenergy • Existing systems emphasis on: • Organic farming – prohibits use of agrochemicals eg mineral nitrogen fertilisers and pesticides • Integrated agric – farming in an economically viable way while respecting ecological demands

13. General findings • Forestry: certification ensures management and proper logging practices are adhered to • Considers social, economic and env benefits for both producer and consumer of products • There are 20 forest certification organizations and stds in operation • 2 major forest certification umbrellas – • Programme for endorsement of forest certification schemes • Forest stewardship council

14. General findings • Bioenergy for heat and electricity production : deals with criteria for sustainable energy from biomass sources • 2 systems – • European Green Electricity Network (EUGENE) • Green gold certificate • 3rd relevant system focusing on principles and criteria for palm oil production – Roundtable on Sustainable Palm Oil (RSPO)

15. General findings • Trade : can benefit the economy But can also create inequities • Eg: 49 LDCs rep---10% of world’s pop--- contribute only 0.4% of global exports • Incoperating trade criteria provides better trading opportunities and ensures producers especially poor and disadvantaged producers benefit from biofuels (not repeat the LDC scenario)

16. Can certification work? • Common agenda / shared goals • Commitment to goal and partners • Overall : accountability/enforcement mechanisms/commitment and political will • Flexible and lean/simple inst structure • examples

17. Roundtable on Sustainable Palm Oil (RSPO) • Ensures palm oil production is done in a sustainable manner • Started in 2001 WWF got consultant to explore possibilities • 2003 : WWF organised consultative meeting -200 participants from 16 countries • 2004 RSPO formally established under the Swiss Civil Code • Association seats in Zurich but sec currently based in Kuala Lumpur

18. Roundtable on Sustainable Palm Oil (RSPO) • Funding • ordinary membership fees at Euro2000/yr • Affiliate membership fees at Euro 250/yr • Structure • Managed by EB comprised of 16 members designated by general assembly for 2 years • Members : oil palm growers, palm oil producers, palm oil processors and traders, consumer goods manufacturers, env ngos, retailers, banks/investors, social/dev ngos • decisions made on consensus basis

19. Roundtable on Sustainable Palm Oil (RSPO) • STDs and the respective principles • Social Dev: • Responsible consideration for employees, individuals and communities affected by growers or mills • Econ Dev: • Commitment to long term econ and financial viability • Env Dev: • Env responsibility and conservation of natural resources and biodiversity

20. Roundtable on Sustainable Palm Oil (RSPO) 4. Generic Stds • Env responsibility and conservation of natural resources and biodiversity • Compliance with applicable laws and regulations • Responsible dev of new plantings • Commitment to continuous improvement in key areas of activity Accreditation : independent

21. Firetrade Labelling Organisation • For such products as coffee and cocoa • Purpose: improve position of poor and disadvantaged producers in the developing world • Labeling initiatives and members encourage industry and consumers to support fairer trade and purchase products

22. Firetrade Labelling Organisation • Funding: • license fees from Labeling Initiatives • Premiums from consumers • Certification paid by producers and traders • Structure : Board of Directors (11 members for 3 years) . A Director runs the organization • 3 sets of stds: • for small farmers • Laborers on plantations and factories • Traders

23. Firetrade Labelling Organisation • Label criteria: • Minimum and progress requirements for Stds • Producers business unit –suppo • Certification areas: 560 orgs in 75 countries in africa, asia, and LA (their effectiveness in africa is questionable given 0.4% share of trade among LDCs!!)

24. Does Africa need such an approach - stds/criteria? • Status and stages of dev in African countries differ • Level and extent of involvement will differ • External stakeholders diversified – approaches individual or community or country • No level playing field between ‘external’ players and local (includes gov) eg external players are financially and information advantaged • Past experiences with cash crops call for caution A policy makers choice!!

25. Basis for development • Social Dev : not compromise/compete with food, (water, land, labor etc)

26. Does the country meet food demand locally • What is the share towards food security does local production meet? • Is the country under food security threat?

27. Guiding approaches ?? • Areas under food production should not shift to biofuels • Areas with high-medium production potential should not be used for biofuels • Marginal land: used only if not under threat to severe unrecoverable degradation • Clear forest land/wetlands for biofuels • What type of national support to provide for biofuels? How does this compete with other food security needs?

28. Asanteni Sana