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1 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Indirect Land Use Change (iLUC) and biogas industry
Horst Fehrenbach
EBA Conference 2014 Egmond aan Zee, the Netherlands, 1 October 2014
horst.fehrenbach@ifeu.de
2 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Overview 1 Why ILUC? 2 How to „measure“ ILUC 3 How to reduce ILUC risk 4 ILUC and biogas 5 Outlook
3 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Why ILUC?
1
EU Energy policy goals after 2000
Increasing demand for biomass as renewable energy source (biofuel quotas)
Increased demand for crops / land use
Raised awareness of sustainability requirements
Solution: certification of production chain
4 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Thus certification is mandatory according to EU Directive 2009/28/EC (à list of land-use-related sustainability requirements)
Why ILUC? 1
However certification … à does not cover the entire problem
à is focussed only on direct effects
à fails to prevent leakage effects
Since 2006 many scientific articles and reports (also by US experts) are dealing with that issue.
5 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
What is ILUC?
Why ILUC? 1
(1) certified producer:
production of feedstock for bioenergy
(2) replaces previously
grown food/feed crops on same acreage
NEW Demand: biomass for
biofuel
Ongoing Demand: food/feed
(3) replaced food/feed crops are produced elsewhere.
(4) “elsewhere” is likely
to be natural areas (e.g. Primary forest)
INDIRECT EFFECT: DEFORESTATION
6 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Is ILUC relevant?
Why ILUC? 1
IFPRI Report (October 2011): … emissions related to land use changes driven by biofuel policies are a serious concern. This finding is robust .... The LUC effect reduces the environmental gains of the biofuel policy and should not be neglected.
Laborde, D., (2011). Assessing the Land Use Change Consequences of European Biofuel Policies, Final Report. ATLASS Consortium, Contract No SI2. 580403. Available at: http://www.ifpri.org/sites/default/files/publications/biofuelsreportec2011.pdf
7 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Source: IINAS/IFEU-Study for Shell (2012)
The IFPRI results (GHG emissions due to ILUC)
Why ILUC? 1
No ILUC if based on residues
8 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
How to measure ILUC
2
First of all: all current ILUC assessments are expressed by Greenhouse gas emission (g CO2eq/MJ biofuel) However: ILUC is more than just a carbon debt Ø Biodiversity Ø Food security Ø local energy security Ø Water scarcity
9 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
The indirectness counteracts any straight-forward approach to „measure“ ILUC
2
Ø It is a matter of market relations Ø It is a matter of magnitude à There are many approaches out there, ranging
from simple assumptive approaches to highly complex econometric models.
à There is no way to avoid a large number of conventions and assumptions.
How to measure ILUC
10 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Key issue: „who‘s responsible?“
2
Ø ILUC to be blamed rather on the policy than on the single producer.
Ø ILUC effects are direct effects of someone else (sectoral thinking is implicating the problem)
Ø Tendency to differ between low-ILUC-risk and high-ILUC-risk bioenergy (favoured by EU Commission).
How to measure ILUC
11 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
How to reduce ILUC risk
How to reduce ILUC risk 3
Ø The EU Commission is tending to phase out First Generation biofuels (from crops à ILUC) and to promote 2nd Gen. from residues/waste.
Ø Low Indirect Impact Biofuels (LIIB) by WWF/EFPL/Ecofys § Biofuel feedstocks produced from yield increases. § Biofuel feedstocks produced by increasing the overall
system efficiency. § Biofuel feedstocks produced on unused land with low
carbon stocks and low biodiversity values. § Biofuels produced from waste.
12 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Key issue “residues”
How to reduce ILUC risk 3
Ø How exactly are residues defined?
Ø What if the residue is already used for some other reasonable purpose?
Ø Does double-counting (or even quadruple-counting) insentivise the „production“ of waste/residues?
13 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
ILUC and biogas
ILUC and biogas 4
Ø Mode of utilization does not matter, only feedstock acquistion matters. à biogas = ILUC-relevant like any other biofuel
Ø Biogas from crops (e.g. maize) need to be handled the same way as Biodiesel from rapeseed oder Ethanol from wheat.
Ø Biogas from residues/waste: à consider the aspects from previous slides
14 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Considerations on „residues“ for biogas
ILUC and biogas 4
Ø Manure: digestion does not compete with any other potential use of manure. à no ILUC at all
Ø Industrial residues (e.g. glycerine) is there evidence that there is no competing use? The waste character has to be justified, otherwise the feedstock is a co-product à land use to be allocated à ILUC (?)
15 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Considerations on „residues“ for biogas
ILUC and biogas 4
Ø Agricultural residues (e.g. straw): firstly: straw is a residue per RED definition à formally no ILUC secondly: is it actually a residue? Or rather a lucrative co-product? à industrial waste (slide before) à land use to be allocated à ILUC in actuality (?) (matter of market / magnitude)
16 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
What about „low ILUC biogas“
ILUC and biogas 4
Ø LIIB criteria can be easily applied on biogas feedstock production:
Ø e.g. Intercropping Ø e.g. plants leading to yield increases along
the crop rotation Ø e.g. integration of biogas plants leading to
increased overall system efficiency (integrated cycles which livestock à manure)
17 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
" The EU Commission is still pending the decision on how ILUC shall be handled for biofuels. Likely that crop-based biofuels will be phased out, residue-based biofuel featured.
" The EU Commission will not set mandatory requirements for biogas (heat/power) à SWD(2014) 259 final Therefore: legally no ILUC for biogas
" The discussion is ongoing anyhow § land use is the most discussed environmental key
aspect after climate change § Food security remains an unsolved global issue.
OUTLOOK
5
18 1 October 2014 Horst Fehrenbach
ifeu - Institut für Energie- und Umweltforschung Heidelberg GmbH
Thank you for listening
horst.fehrenbach@ifeu.de +49 6221 4767-16