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Guaranteeing Sustainability for Agrofuels

Explore current issues in agrofuel sustainability, certification processes, research needs, and global impact, focusing on EU and Southeast Asia. Discuss the role of key players and certification programs in ensuring sustainable agrofuel production.

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Guaranteeing Sustainability for Agrofuels

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  1. Guaranteeing Sustainability for Agrofuels Melanie Pichler melanie.pichler@univie.ac.at Current strategies and problems 4th Bi-Regional EU-SEA S&T Stakeholders Conference 16 November 2011

  2. Outline • Current situation of palm oil and agrofuel production in Southeast Asia and imports in the EU • Sustainability criteria and the RED • Guaranteing sustainability through certification? • ISCC • RSB • RSPO • Research needs and problems to address

  3. Global Agrofuel Production and the Connection to Southeast Asia • Agrofuels as a solution for climate change, energy shortages, economic and rural development • Leading role of the EU, US, and Brazil • Ambitious mandatory blending in the EU: 10% blending by 2020 • Southeast Asia (especially Indonesia and Malaysia) as leading producers and exporters of agrofuels out of palm oil  cheapest feedstock for biodiesel production

  4. Major Palm Oil Producing Countries, 2009 Source: FAOSTAT

  5. Palm Oil Production (in million tonnes) Source: FAOSTAT

  6. Area of Palm Oil Plantations (in million hectares) Source: FAOSTAT

  7. Source: EUROSTAT

  8. Biodiesel Production in Southeast Asia • Malaysia • production capacity of 2.27 million tonnes (6.79 million tonnes already approved) (MPOB 2011) • Indonesia • production capacity of 3.4 million tonnes (IPOB 2011) • Singapore • no feedstock production but processing and trading biodiesel hub • world‘s largest biodiesel plant with a production capacity of 800.000 tonnes (Neste Oil Corporation)

  9. EU imports of biodiesel • Biodiesel imports rising sharply while domestic production is declining • Imports will increase to a record of 2.52 million tonnes in 2011 21% increase from 2010 • Expected 60% increase to 830,000 tonnes of biodiesel from Indonesia and Singapur (516,000 tonnes in 2010) (Reuters 2011)

  10. Sustainability Criteria in the RED I • 10% agrofuels in the transporation sector by 2020 • Second generation agrofuels count double towards the target • Mass balance method to guarantee sustainability • GHG emission savings at least 35% (article 17(2)) • Default value for palm-based biodiesel set at 19% • Major lobbying activities from Indonesia and Malaysia • EU accused of „green protectionism“

  11. Sustainability Criteria in the RED II • exclusion of agrofuels grown on land that used to be primary forest, protected area or highly biodiverse grassland (article 17(3)) • Confusion on definition • No recognition of indirect land-use changes (ILUC) • Exclusion of ILUC at least until 2017 despite scientific evidence for the problem • No need for guaranteeing social sustainability of agrofuels (human rights, land rights etc.)

  12. International Sustainability and Carbon Certification – ISCC • German-led initiative • Recognition from the EU on 19 July 2011 • Especially designed for RED certification of agrofuels (both for fuel and electricity) • Leading Southeast Asian plantation and refining companies are already certified (Neste Oil Singapore, Wilmar, IOI etc.)

  13. Roundtable on Sustainable Biofuels – RSB • International multi-stakeholder initiative • Recognition for RED sustainability criteria on 19 July 2011 • Especially pushed by the Brazilian ethanol industry (sugar cane) • Certification of all kind of agrofuels will start soon • Palm oil not a priority feedstock

  14. Roundtable on Sustainable Palm Oil – RSPO • Multi-stakeholder initiative (growers, manufacturers, retailers, banks, environmental and social NGOs) • Founded in 2004, mainly initiated by Unilever, WWF and the Malaysian palm oil industry • initially set up for voluntary standards in the food and cosmetics sector • 2 additional working groups to guarantee compliance with RED and GHG emission savings of palm oil above 19% • Confident to achieve recognition by the end of 2011

  15. Criticism towards the RSPO • Voluntary character of certification • Only agrofuels need to be certified • Membership not equivalent to certification • Business-to-business approach • Companies themselves decide on rules they have to follow • Certification of smallholders as a major problem • Especially independent smallholders lack institutional capacity

  16. Guaranteeing Sustainability through certification? • Certification currently the only way to deal with the complex issue of sustainability • Many macro-impacts of agrofuels can‘t be addressed at an individual certification level • Narrowing down of sustainability to GHG emissions clouds deeper problems of current mobility patterns

  17. Research needs and problems to address • Root causes for social and environmental problems on a local-global level • Focus on conflicts and root causes of conflicts instead of „cures“ with questionable means • Focus on marginalized social groups that don‘t benefit from the current system • Interconnection between environmental and social problems • Questioning centralized and large-scale solutions in energy and agricultural policies

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