1. Pradipta Halder School of Forest Sciences University of Eastern Finland pradipta.halder@uef.fi 29.7.2013 1 Sustainability dimensions of bioenergy IFS MCT 2013

2. Outline of the Presentation 29.7.2013 2 Introduction to Bioenergy Bioenergy in the context of global challenges Emergence of Sustainability issues Bioenergy sustainability initiatives Sustainable trade in bioenergy The future IFS MCT 2013

3. Bioenergy – Introduction 29.7.2013 3 At present forestry, agriculture, waste and municipal residues are main feedstock for electricity generation from biomass Sugar, grain, vegetables and oily crops are used for producing liquid biofuels Bioenergy supplies 10% of the world’s total primary energy consumption – mostly traditional way of cooking and heating In many developing and least developed countries bioenergy accounts for 80% of the total primary energy supply; in the industrialized countries on average 5% IFS MCT 2013

4. Share of bioenergy in world’s primary energy mix 29.7.2013 4 Source: IEA, 2006; IPCC, 2007 IFS MCT 2013

5. Share of biomass sources in the primary bioenergy mix 29.7.2013 5 Source: IPCC, 2007; IEA Bioenergy 2009 IFS MCT 2013

6. Energy consumption in Finland 2009 Source: Yearbook of Energy Statistics 2010 29.7.2013 6 IFS MCT 2013

7. 29.7.2013 7 IFS MCT 2013

8. Renewable energy consumption in Europe Total renewable energy consumption was 150 Mtoe in 2008 while bioenergy contributed 70% AEBIOM 2010 29.7.2013 8 IFS MCT 2013

9. 29.7.2013 9 Biomass Sources and Energy Conversion Routes Source: EC, 2010 Challenge is to make this whole system sustainable IFS MCT 2013

10. Driving forces behind the development of bioenergy Potential environmental benefits, including in terms of GHG savings that can be obtained from replacing fossil fuels with biomass sources Increases in the price of fossil fuels Considerations regarding the security and diversification of energy supply Others............ 29.7.2013 10 IFS MCT 2013

11. Bioenergy in the context of global challenges Energy transition Energy access Energy security Energy Issues Climate change Energy Poverty Population growth Biodiversity loss Water shortage Food shortage Many more… 29.7.2013 11 IFS MCT 2013

12. Energy transition Several factors and key considerations for the transition Human consumption pattern 29.7.2013 12 IFS MCT 2013

13. Energy Access Year 2012 has been declared as the ’year of energy access’ and year 2030 as the ’sustainable energy for all’ 1.4 billion people in the world do not have energy access (similar number of people below poverty line) (IEA 2011) 2.7 billion people still use traditional biomass sources for cooking and heating ’Access to energy is more important to people who do not have it than how sustainably it is produced’ 29.7.2013 13 IFS MCT 2013

14. Global picture of energy access IEA 2011 29.7.2013 14 IFS MCT 2013

15. Importance of energy access Defining ’energy access’ is a challenge – there are several measurements Quantity of energy that meets service outcome benchmark, its form, quality, physical delivery, reliability, timeliness, and affordability are some of the criteria (Srivastava et al. 2012) Contribute to human well being, reduce externalities, improve local economy, building of infrastucture, create jobs Energy security and energy access are not similar althoguh inter-linked Access is crucial for economic and social sustainability, and comes as a priority with or sometimes even before energy security (World Bank 2002) 29.7.2013 15 IFS MCT 2013

16. Energy Access in Developing Countries 29.7.2013 16 IFS MCT 2013

17. Bioenergy in the context of energy security Energy security has been defined as ”a condition in which a country and all, or most, of its citizens and business have access to sufficient energy resources at reasonable prices for the foreseeable future free from serious risk of major disruptions of service” (Barton et al. 2004) Bioenergy (liquid biofuels) debate is seen in the light of energy security, food security, and environmental security Bioenergy debate is dividing the developed and developing world – linkages are complex 29.7.2013 17 IFS MCT 2013

18. Security issues - interlinkages Water security, food security and energy security are major challenges for economic growth and social stability Food production requires water and energy; water extraction and distribution requires energy; energy production requires water Food prices are also highly sensitive to the cost of energy inputs through fertilizers, irrigation, transport and processing Bioenergy has to be seen in the context of all these security issues and future development of bioenergy depends on how well it addresses these security issues 29.7.2013 18 IFS MCT 2013

19. The risk categories – bioenergy stands across all the risks categories Environmental risks Social risks Economic risks World Economic Forum 2012 29.7.2013 19 IFS MCT 2013

20. Sustainability 29.7.2013 20 “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Brundtland Commission 1987) Sustainability has different interpretations It includes an attribute of future development Future is difficult to predict even with sophisticated models Gro Harlem Brundtland IFS MCT 2013

21. Social, economic and environmental criteria of bioenergy production (non-exhaustive list) Social - Compliance with laws - Food security - Public participation - Cultural acceptability - Social cohesion - Respect for human rights - Working conditions - Respecting minorities - Standard of living - Property rights - Visual impacts - Noise impacts - Planning Economic - Employment generation - Microeconomic sustainability - Macroeconomic sustainability Environmental -Adaptation capacity to climate change impacts -Energy balance -Natural resource efficiency -Species protection -Ecosystem protection -Crop diversity -Exotic species application -Landuse change -Water balance -Waste management -Greenhouse gas balance -Emission of other hazardous gases Markevičius et al. 2010 29.7.2013 21 IFS MCT 2013

22. Sustainability dimensions of bioenergy Bioenergy Economic sustainability Environmental sustainability Social sustainability Energy access Energy security Financing Infrastucture development Innovation Policies Demand side Supply side 29.7.2013 22 IFS MCT 2013

23. 23 Basic Principles for Sustainable Bioenergy from Forests Source: www.bioenergypromotion.net 29.7.2013 23 IFS MCT 2013

24. Indirect impacts of forest-based energy production?? Life-cycle Analysis tools? Indirect impacts of agriculture-based energy production 29.7.2013 24 IFS MCT 2013

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26. 29.7.2013 26 International Energy Agency – Bioenergy Global Bioenergy Partnership (GBEP) EU Renewable Energy Directive (RED) – sustainability criteria for biofuels; Sustainability requirements for the solid and gaseous biomass sources for energy UN Foundation: International Bioenergy Initiative International Standard Organization’s project on Sustainability criteria for bioenergy World Bank, FAO, international projects, certification bodies, national governments, research organizations Actors in the development of Sustainability Framework for Bioenergy IFS MCT 2013

27. EU Climate and Energy Package 29.7.2013 27 Climate and energy targets to be met by 2020 (20-20-20): A reduction in EU greenhouse gas emissions of at least 20% below 1990 levels 20% of EU energy consumption to come from renewable resources A 20% reduction in primary energy use compared with projected levels, to be achieved by improving energy efficiency The Package became a Law in 2009 IFS MCT 2013

28. Renewable energy mix in the EU in 2020 European Commission 2011 10.6.2016 29.7.2013 28 IFS MCT 2013

29. Estimation of total contribution expected from bioenergy in EU 27 NREAP and AEBIOM 2010 29.7.2013 29 IFS MCT 2013

30. Supply potential of biomass in the EU in 2020 NREAP and AEBIOM 2010 Forest and forest based industries will have largest contribution, the biggest increase will come from agriculture 29.7.2013 30 IFS MCT 2013

31. National targets under RED 29.7.2013 31 IFS MCT 2013

32. Country20102020 target EU27*12.420.0 Belgium 13.0 Bulgaria13.816.0 Czech Republic9.213.0 Denmark22.230.0 Germany11.018.0 Estonia24.325.0 Ireland5.516.0 Greece9.218.0 Spain13.820.0 France** 23.0 Italy10.117.0 Cyprus4.813.0 Latvia32.640.0 Lithuania19.723.0 Luxembourg2.811.0 Hungary 13.0 Malta0.410.0 Netherlands3.814.0 Austria30.134.0 Poland9.415.0 Portugal24.631.0 Romania23.424.0 Slovenia19.825.0 Slovakia9.814.0 Finland32.238.0 Sweden47.949.0 United Kingdom3.215.0 Croatia14.620.0 Norway61.167.5 Renewable Energy Roadmap target – 12% in 2012 June 2012 data EU countries on track so far Financing is the key for the development Renewable Energy Roadmap post 2020 Binding 2030 and 2050 renewable energy targets 29.7.2013 32 IFS MCT 2013

33. Proposed sustainability criteria in the RED concerning Biofuels and Bioliquids 29.7.2013 33 ‘No Go’ areas: Bio-diverse land (protected areas, endangered or threatened ecosystems) Land with high stock with carbon in soil or vegetation Peat lands Agricultural land where the conversion to biofuel plantations will affect the food production IFS MCT 2013

34. Proposed sustainability criteria in the RED concerning Biofuels and Bioliquids 29.7.2013 34 GHG emission saving from biofuels and bioliquids (compared to fossil fuels): at least 35% at least 50% from 1 January 2017; at least 60% from 1 January 2018 where the production started on or after 1 January 2017 In the case of biofuels and bioliquids produced by installations that were in operation on 23 January 2008, derogation up to 1 April 2013 IFS MCT 2013

35. Sustainability requirements for the solid and gaseous biomass sources for energy in EU 29.7.2013 35 Report came in 2010 – no mandatory requirements as yet Biomass production in EU is considered ’sustainable’ What about the non-EU countries (tropical)? Three proposed principles: Effectiveness in dealing with problems of sustainable biomass use Cost-efficiency in meeting the objectives Consistency with existing policies IFS MCT 2013

36. Sustainable International Bioenergy Trade – Opportunities and Challenges 29.7.2013 36 Opportunities Many countries have large technical potential for biomass production for energy purposes such as agro-forestry residues and dedicated energy plantations Available land and low cost of labour in developing countries - export potential to the developed countries At present trade is between neighboring countries but long-distance trade is also increasing (e.g. wood pellets from Canada to EU; ethanol from Brazil to EU) Benefits for both exporting and importing countries, transport companies. IEA Bioenergy Task 40 IFS MCT 2013

37. 29.7.2013 37 Challenges Economic: competition with fossil fuels on a direct production cost basis (i.e. excluding externalities) Technical: variety in physical and chemical properties (low density, bulky, high moisture and ash content); difficult to transport and not suitable for direct use such as co-firing with coal or natural gas power plants Logistical: bulky in nature and lack of technology to compacting biomass in low cost to facilitate transport International trade barriers: levies and duties on import; risk of contamination; biotechnology issues IFS MCT 2013

38. 29.7.2013 38 Ecological: monocultures, loss of biodiversity, soil erosion, nutrient leaching Social: employment (increase or decrease? child labour, health problems) Competition with other end uses: raw materials for pulp and paper, animal fodder, ethanol for other industrial uses Methodological: lack of clear international accounting rules (e.g. who will get the CO 2 credits?), methodology to evaluate avoided emissions, etc. Challenges IFS MCT 2013

39. The future: The world we will live in Source: BP Energy Outlook 2030 29.7.2013 39 IFS MCT 2013

40. Source: BP Energy Outlook 2030 Increase in biofuels in 2030 29.7.2013 40 IFS MCT 2013

41. How sustainability of bioenergy can be achieved? Recognizing the trade-offs in the water-food-energy nexus Integrated and multi-stakeholder resource planning Regionally focused infrastructure planning Market led resource pricing Community-level empowerment and implementation Technological and financial innovation in managing the nexus ‘No one knows the clear answer’ 29.7.2013 41 IFS MCT 2013

42. Bioenergy governance is becoming important What feedstock types? Where from (indigenous supply & trade)? What is the cost? How can we mobilize/ efficiently collect existing, create new biomass? What are the sustainability impacts related to feedstock production? How can we reduce uncertainty and improve data collection/accuracy? How should research be shaped in the future? 29.7.2013 42 IFS MCT 2013

43. Renewable Energy Directive 2009 National Renewable Energy Action Plan European Biofuels Directive 2003 (2% biofuels by 2005 and 5.75% by 2010) Biomass Action Plan 2005 EU Strategy for Biofuels 2006 Green Paper on A European Strategy for Sustainable, Competitive and Secure Energy 2006 Climate and Energy Package 2009 (20-20-20) The Energy Taxation Directive 2003 Renewable Energy Roadmap 2007 (20% RE in total energy consumption and 10% biofuels in transport 10% renewable in transport Fuel Quality Directive 2009 (blending biofuel and biodiesel with gasoline) Fuel Quality Directive II 2003 Fuel Quality Directive I 1998 Common Agricultural Policy since 1960s (subsidies) The Energy Taxation Directive 2003 Fuel Quality Directive II 2003 The Energy Taxation Directive 2003 Fuel Quality Directive II 2003 Biomass Action Plan 2005 EU Strategy for Biofuels 2006 Renewable Energy Roadmap 2007 (20% RE in total energy consumption and 10% biofuels in transport Climate and Energy Package 2009 (20-20-20) Renewable Energy Directive 2009 National Renewable Energy Action Plan Fuel Quality Directive 2009 (blending biofuel and biodiesel with gasoline) Biomass Action Plan 2005 EIBI 2010 43

44. Biofuel Policy Development in India Ethanol Blended Petrol program Started (5%) National Mission on Biofuels started National Biofuel Policy drafted and developed Biodiesel Purchase Policy announced Draft Integrated Energy Policy Ethanol Blended Petrol program upgraded Report on Integrated Energy Policy National Biofuel Policy approved National Biofuel Policy withdrawn Ban on Biofuel sale National Biofuel Policy adopted 2003 2005200620082009 Biodiesel Purchase Policy announced Draft Integrated Energy Policy 2005 Biodiesel Purchase Policy announced Draft Integrated Energy Policy 2005 Biodiesel Purchase Policy announced Draft Integrated Energy Policy Ethanol Blended Petrol program upgraded Report on Integrated Energy Policy 2006 Ethanol Blended Petrol program upgraded Report on Integrated Energy Policy 2006 Ethanol Blended Petrol program upgraded Report on Integrated Energy Policy National Biofuel Policy approved National Biofuel Policy withdrawn 2008 National Biofuel Policy approved National Biofuel Policy withdrawn 2008 National Biofuel Policy withdrawn 2008 National Biofuel Policy approved National Biofuel Policy withdrawn 2008 National Biofuel Policy adopted 2009 Ban on Biofuel sale National Biofuel Policy adopted 2009 29.7.2013 44 IFS MCT 2013

45. Importance of social aspects in developing bio- energy technologies Energy technology assessments to date mainly focused on environmental and economic aspects – little focus on evaluate the social aspects, one of the sustainability dimensions Rural stakeholders often remain absent from expert based approaches to resource and development decision making Both public and private investors overlook local perspectives of the agricultural and forest communities who are supposed to produce the bioenergy feedstocks – potential for conflicts 29.7.2013 45 IFS MCT 2013

46. Energy wood supply – role of private forest owners Non-industrial private forest owners (NIPFs) own 60% of the forestland in Finland Number of NIPFs are 734734 with forest estates larger than 2 ha NIPFs supply 80-90% of the domestic roundwood used by the forest industries Finland’s target under RED is 38% renewable by 2020 – wood fuels particularly wood chips will increase to meet this demand Role of NIPFs will be crucial to supply wood biomass for energy production At the moment in Finland has no established market for wood fuels– price of wood fuel is also cheaper than pulp wood How to motivate the NIPFs to ensure a sustainable supply of the energy wood to the market? Sustainable business models? 29.7.2013 46 IFS MCT 2013

47. 47 Conclusions Importance of bioenergy is growing and the trend will continue – forest-based bioenergy production will also increase in the future Economic and environmental impacts of forest-based bioenergy production should be studied but social impacts of this development should also be taken into account Both quantitative and qualitative studies are needed Prediction of the future is challenging but efforts should be made to develop consistent scenarios taking into consideration the developments in the other sectors as well In addition to prediction, looking into the historical development of the world energy sector and its implications should also be analyzed 47 IFS MCT 2013

48. 29.7.2013 48 Thank you for your attention! Questions and Comments IFS MCT 2013