1. Biofuels Sustainability Qs: towards solutions Njeri Wamukonya Presented at the High-level Biofuels Seminar in Africa, Addis Ababa, 30July-1 August 2007

2. A fast growing market… Worldwide investment in bioenergy in 2005 were US$2.66 billion, in 2006 it was US$ 21 billion. Governments in developed and developing countries are putting into place bioenergy targets. Main drivers for bioenergy uptake are energy security, climate change and development concerns.

3. … with huge potential But risks

4. Food security 4 cumulative dimensions: Availability, Access, Stability, Utilization

5. Water scarcity

6. Issues/realities The biofuel industry will prevail due to the forces/incentives and drivers in place Drivers are multifaceted (CC underlying- but it is MITIGATION –(who has the mitigative obligations?))– and that’s all its about from a CC perspective What are the risks posed by this driver: is there danger of solving one env problem while creating other env problems

7. Issues/realities Stakeholders interests can be conflicting (large companies vs women subsistence farmers) What experiences can and should be transferred? What pitfalls should be avoided based on past cash-crop experiences? How can potential threats be circumvented?

8. Challenges (two-fold) 1: it is important that environmental and social criteria for production of the biomass are met 2: this criteria should be flexible to achieve maximum yield for biofuels production (but not compromising)

9. Challenges Hence UNEP and partners are setting up a process for establishing stds for biofuels (starting with vehicles) ; policy guidelines also needed ; enforcement mechanisms/self regulatory Agreement on a criteria or principles is necessary Target stakeholders: producer and consumer Tool : certification

10. Certification assures customers that the product they purchase is produced in a sustainable manner Certification steps: 1. Application of Stds - locally relevant but also comply with international stds/good practice 2. Inspection (audit) –assessment to ensure stds are met 3. Evaluation and results of audit –tracing product to source 4. Issuance of the certificate if compliance is met - after receiving accreditation then products can be labeled with ‘seal of approval’

11. Team activities towards stds goal Gather info on existing certification systems that could be adapted `for establishing sustainable biomass production system 12 different labels were screened in Forestry, Agric, bioenergy for heat and electricity production and trade sector – examining indicators that cover social, economic, ecological and general criteria

12. General findings Agric: - no certification system for biomass production specifically for bioenergy Existing systems emphasis on: Organic farming – prohibits use of agrochemicals eg mineral nitrogen fertilisers and pesticides Integrated agric – farming in an economically viable way while respecting ecological demands

13. General findings Forestry: certification ensures management and proper logging practices are adhered to Considers social, economic and env benefits for both producer and consumer of products There are 20 forest certification organizations and stds in operation 2 major forest certification umbrellas – Programme for endorsement of forest certification schemes Forest stewardship council

14. General findings Bioenergy for heat and electricity production : deals with criteria for sustainable energy from biomass sources 2 systems – European Green Electricity Network (EUGENE) Green gold certificate 3 rd relevant system focusing on principles and criteria for palm oil production – Roundtable on Sustainable Palm Oil (RSPO)

15. General findings Trade : can benefit the economy But can also create inequities Eg: 49 LDCs rep---10% of world’s pop--- contribute only 0.4% of global exports Incoperating trade criteria provides better trading opportunities and ensures producers especially poor and disadvantaged producers benefit from biofuels (not repeat the LDC scenario)

16. Can certification work? Common agenda / shared goals Commitment to goal and partners Overall : accountability/enforcement mechanisms/commitment and political will Flexible and lean/simple inst structure examples

17. Roundtable on Sustainable Palm Oil (RSPO) Ensures palm oil production is done in a sustainable manner Started in 2001 WWF got consultant to explore possibilities 2003 : WWF organised consultative meeting -200 participants from 16 countries 2004 RSPO formally established under the Swiss Civil Code Association seats in Zurich but sec currently based in Kuala Lumpur

18. Roundtable on Sustainable Palm Oil (RSPO) Funding ordinary membership fees at Euro2000/yr Affiliate membership fees at Euro 250/yr Structure Managed by EB comprised of 16 members designated by general assembly for 2 years Members : oil palm growers, palm oil producers, palm oil processors and traders, consumer goods manufacturers, env ngos, retailers, banks/investors, social/dev ngos decisions made on consensus basis

19. Roundtable on Sustainable Palm Oil (RSPO) STDs and the respective principles 1. Social Dev: Responsible consideration for employees, individuals and communities affected by growers or mills 2. Econ Dev: Commitment to long term econ and financial viability 3. Env Dev: Env responsibility and conservation of natural resources and biodiversity

20. Roundtable on Sustainable Palm Oil (RSPO) 4.Generic Stds Env responsibility and conservation of natural resources and biodiversity Compliance with applicable laws and regulations Responsible dev of new plantings Commitment to continuous improvement in key areas of activity Accreditation : independent

21. Firetrade Labelling Organisation For such products as coffee and cocoa Purpose: improve position of poor and disadvantaged producers in the developing world Labeling initiatives and members encourage industry and consumers to support fairer trade and purchase products

22. Firetrade Labelling Organisation Funding: license fees from Labeling Initiatives Premiums from consumers Certification paid by producers and traders Structure : Board of Directors (11 members for 3 years). A Director runs the organization 3 sets of stds: for small farmers Laborers on plantations and factories Traders

23. Firetrade Labelling Organisation Label criteria: Minimum and progress requirements for Stds Producers business unit –suppo Certification areas: 560 orgs in 75 countries in africa, asia, and LA (their effectiveness in africa is questionable given 0.4% share of trade among LDCs!!)

24. Does Africa need such an approach - stds/criteria? Status and stages of dev in African countries differ Level and extent of involvement will differ External stakeholders diversified – approaches individual or community or country No level playing field between ‘external’ players and local (includes gov) eg external players are financially and information advantaged Past experiences with cash crops call for caution A policy makers choice!!

25. Basis for development Social Dev : not compromise/compete with food, (water, land, labor etc)

26. Does the country meet food demand locally What is the share towards food security does local production meet? Is the country under food security threat?

27. Guiding approaches ?? Areas under food production should not shift to biofuels Areas with high-medium production potential should not be used for biofuels Marginal land: used only if not under threat to severe unrecoverable degradation Clear forest land/wetlands for biofuels What type of national support to provide for biofuels? How does this compete with other food security needs?

28. Asanteni Sana