Presentation on theme: "Sustainable Bioenergy and Investments in Agriculture"— Presentation transcript:
1 Sustainable Bioenergy and Investments in Agriculture The Approach and a new collaboration with EBRDIrini Maltsoglou, Climate Change, Energy and TenureInvestment Days, FAO HQ, December 2014
2 Some key definitions: Biomass, Biofuels and Bioenergy Pathways FEEDSTOCKWoodfuel and woody residues, crop residues, livestock residues, crops, food producessing residuesSolid BiofuelsGaseous BiofuelsLiquid BiofuelsFirewood, charcoal, briquettesBiogas, syngas (gasification)Bioethanol, biodiesel and straight vegetable oilRESOURCEDesigner to propose a different layout for the “Environmental Analysis” veritical box, in order to make sure that readers do not get the impression that “Biomass Potential Assessment”, “Techno-Economic Analysis” and “Socio-Economic Analysis” are about “Environmental Analysis”.Designer to create two sub-boxes for “Techno-Economic Analysis” and “Socio-Economic Analysis”, which could look like the bigger boxes, i.e. with an arrow going from the former to the latter in order to indicate the chronological sequence.Designer to propose alternative colour scheme and make any other necessary improvements.Heating and CookingElectricityTransport
3 the 4 dimensions of food security Key Definitions: Food Security….exists when all people, at all times, have physical and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.1996 World Food Summit held in Rome the 4 dimensions of food securityAVAILABILITY - Physical AVAILABILITY of foodACCESS - Economic and physical ACCESS to foodUTILIZATION - Food UTILIZATIONSTABILITY - STABILITY of the dimensionsAVAILABILITY: Food availability addresses the “supply side” of food security and is determined by the level of food production, stock levels and net trade. However, an adequate food supply at the national or international level does not guarantee household level food security.ACCESS:Access to food is influenced by market factors and the price of food as well as an individual’s purchasing power, which is related to employment and livelihood opportunities.UTILIZATION:Utilization is commonly understood as the way the body makes the most of various nutrients in the food. This food security dimension is determined primarily by people’s health status. General hygiene and sanitation, water quality, health care practices and food safety and quality are determinants of good food utilization by the body.STABILITY: Stability refers to stability of the other three dimensions over time. The phrase “at all times” refers to the stability dimension of food security. It emphasizes the importance of having to reduce the risk of adverse effects on the other three dimensions: food availability, access to food or food utilization.
4 Linkages: Bioenergy and Food Security Food Utilization (Nutrition)Food Availability(Supply)Food Access (Income and prices)Which options allow to integrate the energy and agriculture production systems?To be defined which, if any, are:Environmental sustainability, social acceptability, and economic viability of the bioenergy sector “setup”
5 FAO’s Bioenergy and Food Security (BEFS) Approach Assisting countries with the development of a sustainable, food secure bioenergy sector that integrates the agricultural sectorSix areas of supportImpact Monitoring, Evaluation and ResponseSupport toPolicy FormulationSustainableBioenergyAssessmentScopingStakeholder Dialogue and Capacity BuildingRisk Prevention, Management and Investment ScreeningBEFS Rapid AppraisalBEFS Operator Level Tool
6 The BEFS Rapid Appraisal Country StatusReview of key indicators and trends: Agriculture, Energy, Environment, etc.AgricultureResiduesWoodfuel andWood ResiduesCropsNatural ResourcesBiomass Potential AssessmentBiomass Potential AssessmentEnergy EndUse OptionsHeating and CookingCharcoal, briquettes and biogasElectricityGasification, SVO, CombustionTransportBioethanol, biodieselPellets, Biogas (larger scale), CHPTechno-economic and socioeconomic analysisCountry Specific Evidence
7 BEFS Operator Level Tool: indicators and scoring system Screening of sustainability of bioenergy projects (environmental, social and economic)According to EBRD sustainability requirements and FAO food security indicatorsAt the end the investment reviewed receivesan overall scoring:No significant impactsPotentially significant impacts, that can be mitigatedPotentially significant impacts, that are not acceptable
8 FAO EBRD project on bioenergy Title: Supporting National and Private Sector Capacities in Sustainable Agricultural and Bioenergy InvestmentsAim of the project: supporting decision-making related to bioenergy in countries of operations of the EBRDThe implementation period of the project will run from October 2014 to August 2016.Three core elements of the project:Tools: BEFS Rapid Appraisal and BEFS Operator Level ToolCountry level work: Egypt, Turkey, Ukraine, including private sector coverageCapacity building: EBRD and in country
9 Where to find all the information BEFS ApproachIntroduction to BEFS RABEFS RAData collection sheetsBEFS RATools and Manuals
10 BEFS RA: output and interlinkages Country statusKey food staples, agriculture export crops, energy demand and accessNatural Resources: Biomass Potential AssessmentQuantity of feedstock potentially available considering the country needsFeedstock costs for some casesEnergy end use optionsConsidering the feedstock potentially available, the feedstock costs and the domestic energy requirements:Production costs, investment requirements, economic profitability, labour needs, number of households supplied, etc.
11 Overview of the project (contd.) Outputs of the project:A set of tailored tools to the country contextCountry level analysis and reportTraining on the approach and the tools
12 How does the appraisal account for food security and sustainability? Identify key food staples in the countryStrive for feedstock production that is additional to current usesConsider options for income generation, employment and potential tradeoffs (feedstock level, processing level)Sustainable use of natural resourcesintensification of agricultural production as preferred optionforestland and protected areas excludedcurrent/planned uses of residues excludedimportance of residues for soil fertility and structure consideredEconomic and social sustainabilitycompetitivenessfinancial viabilityoutgrowers’ inclusion
13 BEFS Rapid Appraisal Characteristics: Limitations: Excel based set of toolsglobally applicable, national (subnational) level assessmentimplementable in a relatively short timecan be used with limited user defined data, default values are provided as an optionanalysis can focus on country needsallows to limit the scope of detailed analysisLimitations:Accuracy of results depend on the accuracy of the dataDefault data, user defined dataFurther detailed analysis would be required for actual policy formulation, so this is the initial step. A sub-national level BEFS RA could be an option.
14 Phases of implementation of the BEFS RA Phase 1: country needs, focus (stakeholder discussions) and data collectionPhase 2: analysis with the BEFS RA toolsCountry status, natural resources and energy end use optionsPhase 3: results screening, discussion and decision on way forwardTiming4 to 6 months
15 Impact Monitoring, Evaluation and Response Country level support and Evidence: The Bioenergy and Food Security (BEFS) ApproachSix areas of support:Risk Prevention, Management and Investment ScreeningImpact Monitoring, Evaluation and ResponseSupport toPolicy FormulationSustainableBioenergyAssessmentScopingStakeholder Dialogue and Capacity BuildingStructureEvidenceStakeholder DialogueCapacity BuildingIntegrate Agricultureand EnergyStakeholder dialogue and capacity building are essential components of our work.In the Assessment phase we focus on analysis to generate the evidence which is the used to support the policy formulation process.Once policies are in place, these need to be monitored and identify unintended risks so that appropriate response to correct this are put in place.Guidance materials to ensure environmental and social sustainability are also available to support the entire process.
16 Rural electrification options in Malawi BEFS RA Case studyRural electrification options in MalawiOptions for rural electrification to be generated fromSVO/gasification technologyfrom sunflower/soybeanWhich is the most suitable solution?
17 The BEFS Rapid Appraisal Country StatusReview of key indicators and trends: Agriculture, Energy, Environment, etc.Overview informationHeavily dependent on agriculture, high poverty, low GDP/capitaFood security and agricultureMain food crop: MaizeMain ag export crop: TobaccoEnergy and energy accessHeavily reliant on biomass for energy, household main consumers
18 The BEFS Rapid Appraisal Natural ResourcesAgricultureResiduesFuelwood andWood ResiduesCropsCrops – available for bioenergysunflowersoybeanIntensification (t/year)8,47091,844Change of crops (t/year)54,942Extensification: possibility unclear at this level of analysisTOTAL (t/year)63,412Allocated for SVO (t/year)31,70645,922Allocated for biodiesel (t/year)Crops residues – available for bioenergy91,844Maize cobSorghum straw/stalkTOTAL (t/year)57,28138,167Allocated for rural electrification - gasification
19 The BEFS Rapid Appraisal TransportBioethanol, biodieselRural ElectrificationGasification, SVO, CombustionHeating and CookingCharcoal, briquettes, biogasEnergy EndUse OptionsTechno-economic and socioeconomic analysis