Sustainability dimensions of bioenergy Pradipta Halder School of Forest Sciences University of Eastern Finland pradipta. halder@uef. fi 1 IFS MCT 2013 29. 7. 2013
Outline of the Presentation Bioenergy in the context of global challenges Emergence of Sustainability issues Bioenergy sustainability initiatives Sustainable trade in bioenergy 2 Introduction to Bioenergy The future IFS MCT 2013 29. 7. 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% 3 IFS MCT 2013 29. 7. 2013
Share of bioenergy in world’s primary energy mix Source: IEA, 2006; IPCC, 2007 4 IFS MCT 2013 29. 7. 2013
Share of biomass sources in the primary bioenergy mix Source: IPCC, 2007; IEA Bioenergy 2009 5 IFS MCT 2013 29. 7. 2013
Energy consumption in Finland 2009 6 IFS MCT 2013 Source: Yearbook of Energy Statistics 2010 29. 7. 2013
7 IFS MCT 2013 29. 7. 2013
Renewable energy consumption in Europe AEBIOM 2010 Total renewable energy consumption was 150 Mtoe in 2008 while bioenergy contributed 70% 8 IFS MCT 2013 29. 7. 2013
Source: EC, 2010 Biomass Sources and Energy Conversion Routes Challenge is to make this whole system sustainable 9 IFS MCT 2013 29. 7. 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. . . 10 IFS MCT 2013 29. 7. 2013
Bioenergy in the context of global challenges • Climate change • Energy Issues • Poverty • Population growth Energy transition • Biodiversity loss Energy access • Water shortage Energy security • Food shortage • Many more… 11 IFS MCT 2013 29. 7. 2013
Energy transition Human consumption pattern Several factors and key considerations for the transition 12 IFS MCT 2013 29. 7. 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’ 13 IFS MCT 2013 29. 7. 2013
Global picture of energy access IEA 2011 14 IFS MCT 2013 29. 7. 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) 15 IFS MCT 2013 29. 7. 2013
Energy Access in Developing Countries 16 IFS MCT 2013 29. 7. 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 17 IFS MCT 2013 29. 7. 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 18 IFS MCT 2013 29. 7. 2013
The risk categories – bioenergy stands across all the risks categories Environmental risks Social risks Economic risks World Economic Forum 2012 19 IFS MCT 2013 29. 7. 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) Gro Harlem Brundtland • Sustainability has different interpretations • It includes an attribute of future development • Future is difficult to predict even with sophisticated models 20 IFS MCT 2013 29. 7. 2013
Social, economic and environmental criteria of bioenergy production (non-exhaustive list) Social - Compliance with laws - Food security - Public participation - Social cohesion - Respect for human rights - Working conditions - Respecting minorities - Standard of living - Property rights - Visual impacts - Noise impacts - Planning - Cultural acceptability - Environmental 21 IFS MCT 2013 - 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 Economic - Employment generation - Microeconomic sustainability - Macroeconomic sustainability Markevičius et al. 2010 29. 7. 2013
Sustainability dimensions of bioenergy Economic sustainability Environmental sustainability Infrastucture development Bioenergy Supply side Demand side Financing Social sustainability Innovation Energy access Policies 22 IFS MCT 2013 Energy security 29. 7. 2013
Basic Principles for Sustainable Bioenergy from Forests Source: www. bioenergypromotion. net 23 IFS MCT 2013 29. 7. 2013 23
Indirect impacts of agriculture-based energy production Indirect impacts of forest-based energy production? ? Life-cycle Analysis tools? 24 IFS MCT 2013 29. 7. 2013
25 IFS MCT 2013 29. 7. 2013
Actors in the development of Sustainability Framework for Bioenergy 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 26 IFS MCT 2013 29. 7. 2013
EU Climate and Energy Package Climate and energy targets to be met by 2020 (20 -20 -20): 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 27 IFS MCT 2013 29. 7. 2013
Renewable energy mix in the EU in 2020 European Commission 2011 IFS MCT 2013 28 3/19/2018 29. 7. 2013
Estimation of total contribution expected from bioenergy in EU 27 NREAP and AEBIOM 2010 29 IFS MCT 2013 29. 7. 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 30 IFS MCT 2013 29. 7. 2013
National targets under RED IFS MCT 2013 31 29. 7. 2013
Country 2010 2020 target 12. 4 20. 0 Belgium 13. 0 Bulgaria 13. 8 16. 0 9. 2 13. 0 Denmark 22. 2 30. 0 Germany 11. 0 18. 0 Estonia 24. 3 25. 0 Ireland 5. 5 16. 0 Greece 9. 2 18. 0 13. 8 20. 0 23. 0 10. 1 17. 0 4. 8 13. 0 Latvia 32. 6 40. 0 Lithuania 19. 7 23. 0 2. 8 11. 0 EU 27* Czech Republic Spain France** Italy Cyprus Luxembourg Hungary 0. 4 3. 8 30. 1 9. 4 15. 0 Portugal 24. 6 31. 0 Romania 23. 4 24. 0 Slovenia 19. 8 25. 0 Slovakia 9. 8 14. 0 Finland 32. 2 38. 0 Sweden 47. 9 49. 0 3. 2 15. 0 Croatia 14. 6 20. 0 Norway 61. 1 Binding 2030 and 2050 renewable energy targets 34. 0 Poland Renewable Energy Roadmap post 2020 14. 0 Austria Financing is the key for the development 10. 0 Netherlands EU countries on track so far 13. 0 Malta 67. 5 United Kingdom 32 Renewable Energy Roadmap target – 12% in 2012 IFS MCT 2013 June 2012 data 29. 7. 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 33 IFS MCT 2013 29. 7. 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 34 IFS MCT 2013 29. 7. 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 35 IFS MCT 2013 29. 7. 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 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 36 IFS MCT 2013 29. 7. 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 37 IFS MCT 2013 29. 7. 2013
Challenges 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. 38 IFS MCT 2013 29. 7. 2013
The future: The world we will live in 39 IFS MCT 2013 Source: BP Energy Outlook 2030 29. 7. 2013
Increase in biofuels in 2030 40 IFS MCT 2013 Source: BP Energy Outlook 2030 29. 7. 2013
How sustainability of bioenergy can be achieved? ‘No one knows the clear answer’ 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 41 IFS MCT 2013 29. 7. 2013
Bioenergy governance is becoming important ü What feedstock types? ü Where from (indigenous supply & trade)? ü What is the cost? ü How can we mobilize/ efficiently collect existing, create new biomass? ü What are the sustainability impacts related to feedstock production? ü How can we reduce uncertainty and improve data collection/accuracy? ü How should research be shaped in the future? 42 IFS MCT 2013 29. 7. 2013
Common Agricultural Policy since 1960 s (subsidies) European Biofuels Directive 2003 (2% biofuels by 2005 and 5. 75% by 2010) Fuel Quality Directive I 1998 The Energy Taxation Directive 2003 Fuel Quality Directive II 2003 Biomass Action Plan 2005 EU Strategy for Biofuels 2006 Green Paper on A European Strategy for Sustainable, Competitive and Secure Energy 2006 Renewable Energy Roadmap 2007 (20% RE in total energy consumption and 10% biofuels in transport Fuel Quality Directive 2009 (blending biofuel and biodiesel with gasoline) 43 EIBI 2010 Climate and Energy Package 2009 (20 -20 -20) Renewable Energy Directive 2009 10% renewable in transport National Renewable Energy Action Plan
Biofuel Policy Development in India Ethanol Blended Petrol program Started (5%) Ethanol Blended Petrol program upgraded National Mission on Biofuels started National Biofuel Policy drafted and developed Draft Integrated Energy Policy Report on Integrated Energy Policy 2003 44 Biodiesel Purchase Policy announced 2005 2006 IFS MCT 2013 National Biofuel Policy approved National Biofuel Policy withdrawn 2008 Ban on Biofuel sale National Biofuel Policy adopted 2009 29. 7. 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 45 IFS MCT 2013 29. 7. 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 734734 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? 46 IFS MCT 2013 29. 7. 2013
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 47
Thank you for your attention! Questions and Comments 48 IFS MCT 2013 29. 7. 2013
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