Pradipta Halder School of Forest Sciences University of Eastern Finland Sustainability dimensions of bioenergy IFS MCT 2013

Outline of the Presentation 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

Bioenergy – Introduction 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

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

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

Energy consumption in Finland 2009 Source: Yearbook of Energy Statistics IFS MCT 2013

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

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

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 IFS MCT 2013

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… IFS MCT 2013

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

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’ IFS MCT 2013

Global picture of energy access IEA IFS MCT 2013

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) IFS MCT 2013

Energy Access in Developing Countries IFS MCT 2013

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 IFS MCT 2013

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 IFS MCT 2013

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

Sustainability “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

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 IFS MCT 2013

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

23 Basic Principles for Sustainable Bioenergy from Forests Source: IFS MCT 2013

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

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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

EU Climate and Energy Package Climate and energy targets to be met by 2020 ( ): 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

Renewable energy mix in the EU in 2020 European Commission IFS MCT 2013

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

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 IFS MCT 2013

National targets under RED IFS MCT 2013

Country target EU27* Belgium 13.0 Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France** 23.0 Italy Cyprus Latvia Lithuania Luxembourg Hungary 13.0 Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Croatia Norway 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 IFS MCT 2013

Proposed sustainability criteria in the RED concerning Biofuels and Bioliquids ‘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

Proposed sustainability criteria in the RED concerning Biofuels and Bioliquids 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

Sustainability requirements for the solid and gaseous biomass sources for energy in EU 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

Sustainable International Bioenergy Trade – Opportunities and Challenges 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

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

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

The future: The world we will live in Source: BP Energy Outlook IFS MCT 2013

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

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’ IFS MCT 2013

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? IFS MCT 2013

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 ( ) 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 ( ) Renewable Energy Directive 2009 National Renewable Energy Action Plan Fuel Quality Directive 2009 (blending biofuel and biodiesel with gasoline) Biomass Action Plan 2005 EIBI

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 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 IFS MCT 2013

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 IFS MCT 2013

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 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? IFS MCT 2013

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

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