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Sustainable Bioenergy and Investments in Agriculture

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1 Sustainable Bioenergy and Investments in Agriculture
The Approach and a new collaboration with EBRD Irini Maltsoglou, Climate Change, Energy and Tenure Investment Days, FAO HQ, December 2014

2 Some key definitions: Biomass, Biofuels and Bioenergy Pathways
FEEDSTOCK Woodfuel and woody residues, crop residues, livestock residues, crops, food producessing residues Solid Biofuels Gaseous Biofuels Liquid Biofuels Firewood, charcoal, briquettes Biogas, syngas (gasification) Bioethanol, biodiesel and straight vegetable oil RESOURCE Designer 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 Cooking Electricity Transport

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 security AVAILABILITY - Physical AVAILABILITY of food ACCESS - Economic and physical ACCESS to food UTILIZATION - Food UTILIZATION STABILITY - STABILITY of the dimensions AVAILABILITY: 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 sector Six areas of support Impact Monitoring, Evaluation and Response Support to Policy Formulation Sustainable Bioenergy Assessment Scoping Stakeholder Dialogue and Capacity Building Risk Prevention, Management and Investment Screening BEFS Rapid Appraisal BEFS Operator Level Tool

6 The BEFS Rapid Appraisal
Country Status Review of key indicators and trends: Agriculture, Energy, Environment, etc. Agriculture Residues Woodfuel and Wood Residues Crops Natural Resources Biomass Potential Assessment Biomass Potential Assessment Energy End Use Options Heating and Cooking Charcoal, briquettes and biogas Electricity Gasification, SVO, Combustion Transport Bioethanol, biodiesel Pellets, Biogas (larger scale), CHP Techno-economic and socioeconomic analysis Country 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 indicators At the end the investment reviewed receives an overall scoring: No significant impacts Potentially significant impacts, that can be mitigated Potentially significant impacts, that are not acceptable

8 FAO EBRD project on bioenergy
Title: Supporting National and Private Sector Capacities in Sustainable Agricultural and Bioenergy Investments Aim of the project: supporting decision-making related to bioenergy in countries of operations of the EBRD The 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 Tool Country level work: Egypt, Turkey, Ukraine, including private sector coverage Capacity building: EBRD and in country

9 Where to find all the information
BEFS Approach Introduction to BEFS RA BEFS RA Data collection sheets BEFS RA Tools and Manuals

10 BEFS RA: output and interlinkages
Country status Key food staples, agriculture export crops, energy demand and access Natural Resources: Biomass Potential Assessment Quantity of feedstock potentially available considering the country needs Feedstock costs for some cases Energy end use options Considering 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 context Country level analysis and report Training on the approach and the tools

12 How does the appraisal account for food security and sustainability?
Identify key food staples in the country Strive for feedstock production that is additional to current uses Consider options for income generation, employment and potential tradeoffs (feedstock level, processing level) Sustainable use of natural resources intensification of agricultural production as preferred option forestland and protected areas excluded current/planned uses of residues excluded importance of residues for soil fertility and structure considered Economic and social sustainability competitiveness financial viability outgrowers’ inclusion

13 BEFS Rapid Appraisal Characteristics: Limitations:
Excel based set of tools globally applicable, national (subnational) level assessment implementable in a relatively short time can be used with limited user defined data, default values are provided as an option analysis can focus on country needs allows to limit the scope of detailed analysis Limitations: Accuracy of results depend on the accuracy of the data Default data, user defined data Further 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 collection Phase 2: analysis with the BEFS RA tools Country status, natural resources and energy end use options Phase 3: results screening, discussion and decision on way forward Timing 4 to 6 months

15 Impact Monitoring, Evaluation and Response
Country level support and Evidence: The Bioenergy and Food Security (BEFS) Approach Six areas of support: Risk Prevention, Management and Investment Screening Impact Monitoring, Evaluation and Response Support to Policy Formulation Sustainable Bioenergy Assessment Scoping Stakeholder Dialogue and Capacity Building Structure Evidence Stakeholder Dialogue Capacity Building Integrate Agriculture and Energy Stakeholder 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 study Rural electrification options in Malawi Options for rural electrification to be generated from SVO/gasification technology from sunflower/soybean Which is the most suitable solution?

17 The BEFS Rapid Appraisal
Country Status Review of key indicators and trends: Agriculture, Energy, Environment, etc. Overview information Heavily dependent on agriculture, high poverty, low GDP/capita Food security and agriculture Main food crop: Maize Main ag export crop: Tobacco Energy and energy access Heavily reliant on biomass for energy, household main consumers

18 The BEFS Rapid Appraisal
Natural Resources Agriculture Residues Fuelwood and Wood Residues Crops Crops – available for bioenergy sunflower soybean Intensification (t/year) 8,470 91,844 Change of crops (t/year) 54,942 Extensification: possibility unclear at this level of analysis TOTAL (t/year) 63,412 Allocated for SVO (t/year) 31,706 45,922 Allocated for biodiesel (t/year) Crops residues – available for bioenergy 91,844 Maize cob Sorghum straw/stalk TOTAL (t/year) 57,281 38,167 Allocated for rural electrification - gasification

19 The BEFS Rapid Appraisal
Transport Bioethanol, biodiesel Rural Electrification Gasification, SVO, Combustion Heating and Cooking Charcoal, briquettes, biogas Energy End Use Options Techno-economic and socioeconomic analysis

20 Production cost (USD/kWh)
Gasification SVO

21 Investment cost (USD) Gasification SVO

22 Number of Plants Sustainably supplied
Gasification SVO

23 Number of Jobs Gasification SVO

24 Households Supplied Gasification SVO

25 Comparisons Electricity Options

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