1. Biofuel Sustainability: Case studies and lessons from Asia, Latin America & Africa Emmanuel Ackom GNESD / UNEP Risø Centre, Twente, 26 th March. 2013 - Excerpts from findings

2. Definitions The work focused on Liquid biofuels IEA definition of Liquid Biofuels used in the study: Biofuels classified either as conventional or advanced based on level of maturity Conventional biofuel technologies= well established processes and biofuel being produced on commercial scale. Commonly referred to as 1 st Generation. E.g. sugar based ethanol, starch based ethanol, oil crop based biodiesel and straight vegetable oil Advanced biofuel technologies = processes that are still in R&D, pilot or demonstration phase. Usually referred to as 2 nd and 3 rd Generation. Eg. biofuels from lignocellulosic biomass i.e. cellulose ethanol, biomass-to-liquids diesel, algae based biofuels.

3. HIGH Technology Risk LOW R&D Initial prototype Pilot prototype Commercial prototype Market entry Market penetration Combined heat & power Gasification Pyrolysis Thermochemical transport fuels 1 st gen biofuels 2 nd gen transport biofuels (Adapted from Ceres Ventures 2007 by IEA Task 39) Need for policy support for 2 nd generation bioethanol

4. Major ENVIRONMENTAL criteria Net GHG balances Land use change (direct & indirect) Net energy balances Water (use and consumption) Biodiversity Soil quality & health Pollution (air, water, soil) – responsible use of chemicals …. Sources: Hill et. al, 2006; Searchinger et. al, 2008; Williams et. al., 2009; Ackom et. al., 2010

5. Major SOCIAL principle & criteria Avoidance of competition with food Consultation & communication with local communities Biofuel production shall not take place on contested lands Compliance with national laws and ratified international laws on employment conditions and workers’ rights Fair wages and compensations Employees are provided with fair legal contracts Workers are informed about their rights Freedom of association and right to collective bargaining No child nor forced labour Health and safety Etc….. Sources: ILO, RSB, GBEP

6. GNESD centres involved & studied countries AFREPREN/FWD Energy, Environment and Development Network for Africa Energy, Environment, Development CENBIO/CentroClima Thailand Brazil Argentina Kenya Senegal

7. Different aspects of Biofuel Sustainability in the 5 countries CountryInvestigated topic ThailandAssessment of Thailand’s liquid biofuel development BrazilEnvironmental zoning as a policy tool to increase the sustainability of sugarcane ethanol production in Brazil SenegalPolicy considerations for biofuel implementation: A case study of Jatropha curcas in Senegal KenyaPotential of liquid biofuels in Kenya ArgentinaSustainability indicators for biofuels in Argentina

8. Assessment of Thailand’s liquid biofuel development This paper provides an assessment of ethanol and biodiesel development in Thailand – type of feedstock being employed – production trends – planned targets and blending mandates – policies i.e. tax schemes – environmental and social sustainability considerations

9. Thailand - a key player in liquid biofuel production in Asia

10. Thailand – major feedstocks for biofuel production

11. Thailand Policy –Alternative Energy Dev’t Plan (AEDP) 2012-2021 By 2021: RE contributing 25% of national energy consumption Substituting 44% of transport sector oil consumption with biofuels

12. Thailand 2 nd Gen biofuel potential from agricultural residues (2010) - GNESD CropResidueProdRPRRes.Sustain. Res. Biochem. EtoH (low) Thermo- Biodiesel type(tonnes)dry wt.20% extraction hydro. & ferm. (low) (litres) F-T (low) (litres) MaizeStalk4.5E+061.55.7E+061.1E+061.3E+088.5E+07 RiceStraw3.2E+071.54.0E+078.1E+068.9E+086.0E+08 SorghumStalk5.4E+042.621.2E+052.4E+042.7E+061.8E+06 SugarcaneBagasse6.9E+070.35.2E+061.0E+061.1E+087.7E+07 WheatStraw1.1E+031.21.1E+032.2E+022.5E+041.7E+04 CocoaPods, husk7.6E+021.06.5E+021.3E+021.4E+049.7E+03 CoconutHusk1.3E+060.67.0E+051.4E+051.5E+071.1E+07 CoffeeHusk4.9E+042.18.7E+041.8E+041.9E+061.1E+06 Total1.0E+071.1E+097.8E+08

13. Thailand – key messages Biofuels in Thailand – remains a ‘double edge sword’ – On the one hand well documented benefits been reported for Thailand’s biofuels i.e. increased job creation, reduction of transportation fuel imports, increased GDP contribution etc. – On the other hand however, there are land use change issues as well as vulnerability to food access concerns for Thai’s poor – Biofuel production will continue to rise in Thailand due in part to the AEDP – 2 nd Gen. biofuel from agricultural residues & wastes recommended as providing preferred opportunities with low sustainability risks – However, considerable investment in 2 nd Gen R&D, demonstration and pilot facilities will be required.

14. Environmental zoning as a policy tool to increase the sustainability of sugarcane ethanol in Brazil This paper investigates and drawn lessons from Brazil’s novel nationwide environmental zoning of sugarcane production in 2009: – This resulted from the experience & effort by the 2 largest sugarcane states in Brazil namely: Minas Gerais (in 2007) Sao Paulo (in 2008)

15. Brazil Agro-ecological sugarcane production Key Criteria: Environmental aspects, technological potential and productivity Exclusion of pristine ecosystem i.e. Amazon and Pantanal biomes, Upper Paraguay River Basin. Avoiding conflict with food production Areas without need for full irrigation Degraded pastures

16. Brazil 2 nd Gen biofuel potential from agricultural residues (2010) - GNESD CropResidueProdRPRRes.Sustain. Res. Biochem. EtoH (low) Thermo- Biodiesel type(tonnes)dry wt.20% extraction hydro. & ferm. (low) (litres) F-T (low) (litres) MaizeStalk5.5E+071.57.1E+072.2E+081.6E+091.1E+09 RiceStraw1.1E+071.51.4E+072.9E+063.2E+082.2E+08 SorghumStalk1.5E+062.623.4E+066.8E+057.5E+075.1E+07 WheatStraw6.2E+062.01.0E+072.1E+062.3E+081.6E+08 CoffeeHusk2.9E+062.15.2E+061.0E+061.1E+087.8E+07 OatsStraw4.0E+052.06.7E+051.3E+051.5E+071.0E+07 SugarcaneBagasse7.2E+080.35.4E+071.1E+071.2E+098.1E+08 Total2.1E+072.3E+091.6E+09

17. Brazil – key messages Agro-ecological zonings - a likely baseline for issuing permits/license for energy crop production in Brazil Brazil’s experience with agro-ecological zonings provides valuable lessons for consideration and learning in other developing countries. E.g. COGEN Africa (with UNEP, GEF and AfDB). Agro-ecological zonings avoids competition of land from food and fuel purposes, as well as the prevention of the use of pristine ecosystems for biofuel production The Brazilian experience shows how policies could be effectively be applied in a complementary fashion to achieve maximum benefits. E.g. coupling command and control (i.e. zoning laws) with use of economic incentives (i.e. public development banks, international dev’t agencies)

18. Policy considerations for biofuel implementation. A case study of Jatropha Curcas in Senegal This paper reviews the NPJ progress, provides information on policies and institutions shaping biofuels in Senegal It also investigates Senegal’s agro-environmental mapping exercise for bioenergy crops.

19. Senegal 2 nd Gen biofuel from agricultural residues CropResidueProdRPRRes.Sustain. Res. Biochem. EtoH Thermo- Biodiesel type(tonnes)dry wt.20% extraction hydro. & ferm. (low) (litres) F-T (low) (litres) MaizeStalk1.9E+051.52.8E+055.6E+046.2E+064.2E+06 MilletStalk8.1E+053.02.4E+064.9E+055.4E+073.7E+07 RiceStraw6.0E+051.59.1E+051.8E+052.0E+071.4E+07 SorghumStalk1.6E+052.624.3E+058.5E+049.4E+066.4E+06 SugarcaneBagasse8.5E+050,32.6E+055.1E+045.6E+063.8E+06 CoconutHusk5.1E+030.63.1E+036.1E+026.7E+044.6E+04 Total8.6E+059.5E+076.5E+07

20. Senegal – key messages The mapping process lead to some very interesting findings beyond what policy makers had anticipated. For e.g. it was found out from the mapping exercise that 3-5 million ha exist for Jatropha compared to NJP otherwise thought ambitious target of 321,000 ha. Lack of scientific rigour pertaining to the choice of Jatropha by policy makers as the selected bioenergy crop compared to other candidates The mapping avoids competition of land from food and fuel purposes, as well as the prevention of the use of pristine ecosystems for biofuel production Lack of coordination at the local level involving private initiatives and NJP teams. Additionally, streamlining national institutional roles in bioenergy. Effective implementation strategy having clear principles & conditions for processing, distribution and use of the biodiesel is required.

21. Potential for liquid biofuels in Kenya Key driving factors for Kenya’s interest in biofuels – 25% of import bill goes to vehicular transportation fuel – Rising fuel cost – increase in no. of vehicles

22. Kenya 2 nd Gen biofuel from agricultural residues CropResidueProdRPRRes.Sustain. Res. Biochem. EtoH Thermo- Biodiesel type(tonnes)dry wt.20% extraction hydro. & ferm. (low) (litres) F-T (low) (litres) MaizeStalk3.2E+061.54.1E+068.2E+059.0E+076.2E+07 MilletStalk5.4E+043.01.4E+052.8E+043.0E+062.1E+06 RiceStraw8.0E+041.51.0E+052.0E+042.3E+061.5E+06 SorghumStalk1.6E+052.623.7E+057.3E+048.0E+065.5E+06 WheatStraw5.1E+051.25.2E+051.0E+051.2E+077.8E+06 CoconutHusk4.4E+040.64.0+E047.8E+038.6E+055.9E+05 BarleyStraw6,4E+041.79.3E+041.9E+042.0E+061.4E+06 SugarcaneBagasse5.7E+060.34.3E+058.6E+049.4E+066.4E+06 Total1.2E+061.3E+088.7E+07

23. Kenya – Key messages The need for agro-ecological mapping of areas for bioenergy cultivation Enforcement of mandatory blending is essential as it help eliminate uncertainty among biofuel investors The need to tap into international and regional financing facilities and initiatives Establishment of a national registry of feedstock availability, processing facilities and up-take in order to effectively avoid the mismatch between supply and demand Development of a regional and national biofuel standards and certification requirements that harmonizes with global standards. 2 nd Gen. biofuel from agricultural residues & wastes recommended

24. Sustainability indicators for biofuels in Argentina This paper examine trends in selected indicators associated with biofuels in Argentina: – GHG emissions – Land use – Glyphosphate use – Soil quality – Rural development

25. Argentina 2 nd Gen biofuel from agricultural residues CropResidueProdRPRRes.Sustain. Res. Biochem. EtoH Thermo- Biodiesel type(tonnes)dry wt.20% extraction hydro. & ferm. (low) (litres) F-T (low) (litres) MaizeStalk2.3E+071.52.9E+075.8E+066.4E+084.3E+08 RiceStraw1.2E+061.51.6E+063.2E+053.5E+072.4E+07 SorghumStalk3.6E+062.628.1E+061.6E+061.8E+081.2E+08 SugarcaneBagasse2.5E+070.39.4E+053.8E+054.1E+072.8E+07 WheatStraw1.5E+071.21.5E+073.0E+063.4E+082.3E+08 BarleyStraw3.0E+061.74.3E+068.6E+059.5E+076.5E+07 OatsStraw6.6E+052.01.1E+062.2E+052.5E+071.7E+07 RyeStraw5.0E+042.07.6E+041.5E+041.7E+061.1E+06 Total1.2E+071.3E+098.9E+08

26. Argentina – key messages Biofuels in Argentina from soybean – also remains a‘double edge sword’ – On the one hand earnings from soybean exports have revitalized some agricultural communities ie. Santa Fe, Cordoba and Buenos Aires. On the other hand there has been displacement of rural populations due to increased mechanization of agricultural practices. Also displacement of other crops and traditional animal husbandary – Glyphosphate use in soybean cultivation has intensified resulting in increased environmental and health concerns – Emphasizes the need for careful analysis on both positive and negative impacts of biofuels as the basis for policy formulation and implementation. – The paper recommends land use planning and zoning for bioenergy cultivation nationally.

27. Possible Financing Options Africa AfDB - CECAFA AfDB-CEIF AfDB-I LOC AfDB-I ALC ECOWAS-EBID ECOWAS (African Biofuels & RE Fund) West Africa Dev’t Bank Asia ADB (Asian Development Fund) ADB –CMI ADB- EEI/CEFPF ADB – REACH ADB-STI Americas IDB Infrastructure Fund (InfraFund) IDB – SECCI Funds

28. Thank you very much I welcome your questions and comments Emmanuel Ackom, UNEP Risø Centre email: emac@dtu.dkemac@dtu.dk