Biomass Policies Workshop 14th May 2014 An introduction to the Sustainable Biomass Partnership (SBP) SBP’s Vision Statement: Sustainability is our priority and our vision is an economically, environmentally and socially sustainable solid biomass supply chain that contributes to a low-carbon economy. Biomass Policies Workshop 14th May 2014

SBP is an industry initiative Sustainable Biomass Partnership A renewed focus on developing solutions – vision and approach SBP is an industry initiative Sector vision Sustainability is our priority and our vision is an economically, environmentally and socially sustainable solid biomass supply chain that contributes to a low-carbon economy. The challenge Ideally sector would rely on FSC ad PEFC certification We recognise the credibility of existing forest certification schemes (FSC/PEFC) and do not wish to compete with or replicate them. Schemes have insufficient take-up in key forest-source areas and lack some of the key elements related to biomass so a bridging solution is required. Biomass Assurance Framework A set of standards & processes to allow sector companies to demonstrate compliance with legal, regulatory and sustainability requirements using existing mechanisms wherever we can. Critical market players in biomass use for large scale power generation in EU

Sustainable Biomass Partnership What is the Biomass Assurance Framework? SBP Biomass Assurance Framework (Draft 1) Aims to provide effective and verifiable assurance to cover all those countries in which SBP member companies operate Must be globally applicable to diverse source regions Certification of production unit e.g. pellet mill rather than forest-level Alignment where possible with globally recognized forest certifications schemes (PEFC/FSC) Many of the SBP processes are derived from FSC and PEFC SBP Certification Bodies will be FSC or PEFC-accredited FSC/PEFC-certified material accepted Risk-based approach for non-certified material Lack of confirmed EU or national standards so need to work with what is available. Therefore, regulatory compliance demonstrated using the most stringent national requirements: Sustainable Forest Management criteria - based on UK Government’s Timber Procurement Policy (CPET Category B) requirements + NL criteria Legality - from EU Timber Regulation GHG data to be carried along supply chain – using Belgian requirements Chain of custody - Mass Balance approach Source regions Most woody biomass sourced from outside EU North America currently a key wood basket especially west coast Canada and SE USA Regulatory and cultural environment different from European norms

Sustainable Biomass Partnership SBP work programme The focus is to develop solutions, short-term and long-term: Short term 1: Biomass Assurance Framework - a first-step solution to demonstrating regulatory compliance which builds on and aligns with existing FSC and PEFC processes as far as possible – SBP-compliant biomass Short term 2: Biomass Routes - working with certification schemes to develop modules so that their certified material can meet biomass users’ requirements e.g. biomass-specific SFM & GHG modules as necessary Medium-long term: Wood basket partnerships - working with schemes to increase uptake of FSC & PEFC certification in key wood baskets. -The proposed development of modules to produce a Biomass Route for FSC/PEFC certification is the sector’s response to the lack of some biomass-related aspects in FSC/PEFC standards -The development of a BAF is the sector’s short-term response to the lack of certification uptake in key wood baskets The proposed development of partnerships with FSC/PEFC to increase uptake of certification is the sector’s long-term response to the lack of certification uptake in key wood baskets.

Sustainable Biomass Partnership On-track to deliver SBP certification from Summer 2014 The Draft 1 consultation documents are available on: www.sustainablebiomasspartnership.org

Sustainable Biomass Partnership The certification concept – feedstock, pellet mill and biomass Primary Feedstock Secondary Feedstock Tertiary Feedstock

Sustainable Biomass Partnership The certification framework – structure, process and procedures Biomass Assurance Framework: Scheme Architecture Structure, Process and Procedures Sustainable Feedstock Standard (SFS) + Evaluation Process Standard COC + GHG data collection standards Primary Feedstock Secondary Feedstock Tertiary Feedstock Certification Systems Standard

Sustainable Biomass Partnership The certification concept – a risk-based approach Supply Base Evaluation Principles derived from UK TPP, including other relevant criteria Legality Ecosystems Environment Productivity Social Biodiversity Other Relevant Criteria Regional Risk Assessment Desk-based assessment against SBP-criteria – results in a risk rating for each indicator + Supplier Verification Program Field-based assessment for those indicators for which no clear risk can be determined in RRA Low Risk Criteria No further action needed Specified Risk Criteria Implement mitigation measures PEFC/FSC certified feedstock. Compliance

Sustainable Biomass Partnership Key concepts in summary SBP certifies 3 components: Sustainable Feedstock, Chain-of-Custody, Greenhouse Gas Data The Biomass Assurance Framework comprises standards, structures, systems and processes Independent third-party certification Makes maximum use of FSC and PEFC and complements where necessary Addresses specific biomass issues Can be used in areas with limited uptake of FSC/PEFC certification Risk-based approach for-non certified feedstock Central role for Pellet Mill, inspired by FSC ‘Controlled Wood’ approach Sustainable Feedstock Standard Stakeholder input in Supply Base Evaluation and Certification process Inclusion of residues made possible by risk-based approach with central role for pellet mill. FSC/PEFC certification of all forests would not be possible due to limited role of biomass to forest holder

Sustainable Biomass Partnership Next steps Piloting completed in Canada, USA, Latvia & Portugal C. 25 stakeholder consultation responses received Sounding Board finalising its input Analysis underway and top-level issues will be considered by AFDG (May) 3-day meeting to finalise BAF Version 1 (June) There will be changes! Not possible to satisfy all stakeholders – must be a practicable and robust first step in a process Indications are that it will influence practice in source regions Board decision on BAF (end June) BAF V.1 available in Summer 2014 Work over next 18-24 months to build on and improve for BAF V.2 (2016) Inclusion of residues made possible by risk-based approach with central role for pellet mill. FSC/PEFC certification of all forests would not be possible due to limited role of biomass to forest holder

Sustainable Biomass Partnership Thank you Peter Wilson Interim Director Sustainable Biomass Partnership E: peter@wilsonapplied.com T: +44 (0)131 226 4665

Sustainable Biomass Partnership A renewed focus on developing solutions - structure SBP Board Chair: Dorothy Thompson Interim Director: Peter Wilson Advice SBP Sounding Board (Possibly a future Advisory Board) Chair: Jacqueline Cramer Provides advice to Board & AFDG Interim Director Reports to Board Focuses on delivery of Assurance Framework Advice SBP Assurance Framework Development Group Chair: Peter Wilson Members: Member reps and experts