myths, realities and needs about biofuels...bioenergy † possible negative environment + iluc...

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Myths, Realities and Needs about Biofuels Olivier Dubois, FAO EC Conference: “The role of low carbon fuels in decarbonising transport: the emerging consensus from international initiatives“ , Brussels, 10-11 April, 2018

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Page 1: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Myths, Realities and Needs about Biofuels

Olivier Dubois, FAO EC Conference: “The role of low carbon fuels in

decarbonising transport: the emerging consensus from international initiatives“ , Brussels, 10-11 April, 2018

Page 2: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Generic Myths • Sweeping statements on biofuel

sustainability - Food crop feedstock always bad / Energy crops and residues always good - Not that simple!

• Simple solutions to reconcile food and fuels are available - You must be joking!

Page 3: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Myth #1 - Food-based feedstocks always bad??

• Not necessarily the case (e.g. sugarcane ethanol in Brazil, outgrower palm oil in Indonesia)

• Flex crops (that produce both food and fuel) do not compete with food if fuel adds to food –Possible but challenging through:– Yield increase (e.g. sugarcane in Brazil)– Substitution of export crops (e.g.: cassava ethanol

study in Tanzania)– Integrated food-energy systems (IFES)– Outgrower schemes

Page 4: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

:• Agricultural/wood/fisheries by-products/ residues becoming

commodities as increasingly used (IEA predicts residues 25-30% of biofuel feedstock energy by 2050)

• Use of by-products allows for 10-30% reduction in land needsBUT

Watch out for: • competing use of agricultural residues (soil management – feed

– bioenergy)– Cheapest fertiliser and soil protection for small-scale farmers – Often more than 40% animal feed in developing countries

• Handling costs !

Myths #2 - Feedstocks from Residues – Panacea??

Page 5: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Myth #3 - Energy crops – Silver bullet??

• Less DIRECT competition with food security BUT

• Less edible by - products as the whole plant is used for bioenergy

• Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests)

• Possible INDIRECT competition with food security – Regarding land use – Regarding the use of agricultural residues (soil, feed, energy)

• No flexibility between food and energy markets• Not yet ready on large scale and for some more time

Page 6: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

2G biofuels are expensive – e.g. ethanol

Page 7: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Myth #4: ILUC risk is new and does not exist with 2G Biofuels

• ILUC risk is not new – It concerns all biomass production that entails land use change – Hence ALL biofuels – including 2G Biofuels

Page 8: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Global Realities• Sustainable biofuel production is complex

• One should embrace this complexity rather than oversimplifying things by relying only on modelling and global studies

• The good news is that there is enough evidence, knowledge and tools to move from “food versus fuel” and “1G versus 2G” to “food and fuel” and “1G and 2G biofuels”

Page 9: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

1st Set of Specific Realities – Land issues

• Not so much about How much land – most people think there is enough land for food and fuel production– Biofuels currently use less than 5% of all arable land – Percentage could rise to 5-10% in the next decades.– It depends on many factors (e.g. intensification, use of

by –products)

• Often more about Whose and What Land

Page 10: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

WHOSE land

Land belongs to Size of bionergy production unit

Large Small/community type

Company (private or public)

A C

Small producer or community

B D

Source: Dubois, 2008

Outgrower schemes

Page 11: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

• “No go areas” (high carbon, high biodiversity) –Relatively easy to define; more difficult to enforce

• “Best bet areas” Often so-called degraded/marginal/abandoned land: But controversial/dynamic concepts that need to be locallydefined

+ What is more Interesting for investors !?

WHAT land

Page 12: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

The ILUC issue

• ILUC risk exist for Land-based bioproducts

• Models to assess the ILUC risks oversimplify the reality

• There are ways to reduce the ILUC risk, so more constructive to focus on these

Page 13: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Key Messages on Land Realities Often more about “Whose” and “What” Land

A lot to do with land and natural resources governance

Voluntary guidelines on sustainable tenure governance of land, forests and fisheries exist

ILUC risk for ALL Biofuels there are ways to minimise it

Page 14: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

2nd Set of Specific Realities - Food prices • Based on global studies biofuels cause 3 to 75%

increase on international food prices - Jury out forever!

+ • Need to assess price transmission from commodity

to food and from international to national and local levels

• Price changes impact different people in different ways

Page 15: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Impacts will vary for net sellers and net buyers of food

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bolivia

Ethiopia

Bangla

desh

Zambia

Mad

agasc

ar

Vietnam

Cambodia

Smallholders net sellers

Smallholders self-sufficient

Smallholders net buyers

Rural landless (buyers)

Urban (buyers)

Source: World Bank 2007

Page 16: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Key Messages on Food Price Realities

There is a link BUT

Biofuels are one amongst many other factors that influence food prices

Need to look at the link at country and household levels - where it matters!

Page 17: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Realities about 1G/2G Biofuels • A lot can be learned about the challenges and

opportunities of 1G biofuels that is useful for 2Gbiofuels

• There are several examples of technological and financial synergies between 1G and 2G biofuels

• It will take quite some time before 2G biofuels have a meaningful impact on energy use and climate change

Page 18: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Realities about 1G/2G Biofuels • There are several examples of technological and

financial synergies between 1st G and 2nd G biofuels

• Therefore 2nd G biofuels should be developed in parallel with 1st G biofuels

• The key issue is not about choosing between 1st or 2ndG biofuels, but on how to make biofuels sustainable, and

Page 19: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Generic Needs • Move Away from Myths and Sweeping

Statements

• Embrace the complexities of sustainable biofuels

• Be constructive and rigourous by using available tools to get things right through an integrated, contextualized and evidence-based approach

Page 20: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Example: FAO’s Sustainable Bioenergy Support Package

• An in-depth understanding of the situation and related opportunities and risks as well as synergies and trade-offs;

• Implementation of good practices by investors/producers in order to reduce risks and increase opportunities;

• An enabling policy and institutional environment to promote the implementation of good practices;

• Appropriate monitoring and evaluation of impacts and performance of good practices and policy responses

Page 21: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Typology of FAO Tools for SustainableBioenergy

Before project implementation: Screening and risk prevention

After project implementation: Assessment and monitoring

Local Impact BEFS Operator Level Tool

IFES analytical framework

Regional/ National impact

BEFS Rapid Appraisal

GBEP indicators

Page 22: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Needs on Feedstock Matters • One should be agnostic not dogmatic about

types of feedstock

• This is because what matters is the way they are managed for food and non-food purposes

• Watch out on competition between different uses of feedstocks

Page 23: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Needs on 1G/2G Biofuels • 2G biofuels should be developed in parallel with

1G biofuels

• The key issue is not about choosing between 1Gor 2G biofuels, but on how to make biofuels sustainable, and

• Together, we have the means to do it if we embrace the challenges of sustainable biofuels in a science and reality-based way

Page 24: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

FAO’s Key Messages on Biofuels

•Sustainability of biofuels is context specific. Therefore its assessment must be based on reality not models and global studies• Tools and knowledge are now available to help governments and operators reduce risks and enhance opportunities of biofuel development • Per se biofuels are neither good nor bad. What matters is the way they are managed • Biofuels should be viewed as another opportunity for responsible investment in sustainable agriculture, rural development and bioeconomy.

Page 25: Myths, Realities and Needs about Biofuels...bioenergy † Possible negative environment + ILUC effects (e.g. large scale monocropping plantations replacing forests) † Possible INDIRECT

Thank you for your attention!

Contact: [email protected]/themes/energy/bioenergy