130423 bioeuparks berlin 23042013_nei

RED REQUIREMENTS FOR BIOFUELS AND BIOLIQUIDSSustainability Criteria

Berlin23.04.2013Christoph Neitzel

nachwachsende-rohstoffe.de

Fachagentur Nachwachsende Rohstoffe e.V.

Contents

• Introduction• Renewable Energy Directive• Sustainability Criteria• Monitoring, Reporting and Verification• Certification Systems• Mass Balance Method• “Recent” developments• Conclusions

23.04.2013RED requirements for biofuels and bioliquids Seite: 2


Sustainability

• Forestry Sector since 300 yrs Hans Carl von Carlowitz,

German tax accountant and mining administrator in Freiberg, Saxony

Scarcity of timber due to intensive mining activities

Sylvicultura oeconomica in 1713


• EU-Strategy on SD “Sustainable Development

stands for meeting the needs of present generations without jeopardizing the ability of futures generations to meet their own needs.”

Source: AFZ, 1952


Renewable Energy Directive (RED) 2009/28/EC

• The RED sets binding targets (in 2020): 20% target renewable sources in final consumption (Art.3(1))

National targets (Annex I Part A): AT 34%, GR 18%, HU 13%, IT 17%, SI 25%

Progress (EUROSTAT, 2010): AT 30%, GR 9%, HU 9%, IT 10%, SI 20%

10% target renewable sources in transport (Art.3(4))

• Requires National Renewable Energy Action Plans (NREAPs) (Art.4)

Deadline for Member States (MSs) notification June, 30th 2010 (Art.4(2))

National targets for renewable energy shares in transport, electricity, heating and cooling

Biofuels & bioliquids not fulfilling Sustainability Criteria are excluded


Note: values represent % and are rounded for progress AT GR HU IT SI

Targets (Annex I Part A) 34 18 13 17 25

Progress (EUROSTAT, 2010)

30 9 9 10 20


Sustainability criteria in RED

• Sustainability criteria for biofuels & bioliquids (Art.17)

Four main criteria (Art.17(2-6)) Importance of compliance, irrespective of whether the

raw materials were cultivated inside or outside the EU, in order to be taken into account for: Fulfilling national/EU targets for renewable energy Fulfilling EU targets for reduced unit emissions from road

transport fuels Eligibility for the main types of government support Eligibility for investment and operating aid under the

environmental state aid guidelines


Fachagentur Nachwachsende Rohstoffe e.V. 23.04.2013RED requirements for biofuels and bioliquids Seite: 6

Criterion 1: Greenhouse gas (GHG) savings

• Minimum rate of GHG savings (Art. 17(2)) 35% immediately 50% in 2017 60% in 2018 (new installations only, on/after 2017)

• Rules for the calculation of GHG savings (Art.19) Default values provided “Actual” values according to calculation method Impact of actual land-use change in the production

chain must be taken into account

Fachagentur Nachwachsende Rohstoffe e.V. 23.04.2014RED requirements for biofuels and bioliquids Seite: 7

Criterion 2: Biodiversity

• No raw material from land with high biodiversity value (Art.17(3)):

Three broad land categories in/after 2008: Undisturbed “Primary forest and other wooded land“:

• No human activity • Intact ecological processes

”Areas designated“:• Nature protection by law or competent authority• Protection of rare, threatened or endangered ecosystems, or

species recognised by international agreements, or IUCN• Exception: unless evidence is provided about compatibility

“Highly biodiverse grassland”:• Natural: remain in the absence of human activity• Non-natural: require human activity, species-rich and not

degraded; exception: unless evidence is provided about compatibility


Criterion 3: High carbon stock

• No raw material from land with high carbon stock (Art.17(4-5)):

Three broad land categories in 2008, but no longer: “Wetlands“: covered/saturated permanently/mainly “Continuously forested areas”: area >1ha, height >5m,

canopy cover >30%; or ability to reach those thresholds Open “forested areas”: area >1ha, height >5m, canopy

cover 10-30%; or ability to reach those thresholds; exception: unless evidence is provided about Criterion 1 (Art.17(2))

Exception: unless at the time of harvest the status corresponds to 2008

One land category in 2008 “Peatland”: exception: unless cultivation/harvesting does

not involve drainage of previously undrained soil



Criterion 4: Cross compliance

• Agricultural raw material cultivated (only) in the EU must also meet the EU agricultural cross compliance rules applied under the EU Common Agricultural Policy (EC No 73/2009) (Art.17(6)):

Requirements & standards (Annex II, part A, point 9); e.g. plant protection products

Minimum requirements (Art.6(1)); good agricultural and environmental conditions



Monitoring, Reporting and Verification (MRV)• MRV activities take place at three levels:

Economic Operators MSs The Commission• Economic Operators (Art.18):

Show fulfilment of the sustainability criteria (Art.18(1)) Track consignments with the mass balance method (Art.18(1)) Independent audit evaluate and verify provided information

(Art.18(3)) MSs are primarily responsible for verification (Art.18(3)) The Commission recognises certification schemes or international

agreements which comply with the criteria (Art.18(4)), and MSs must accept the evidence these schemes provide (Art.18(7))

• MSs (Art.22): Report (in addition) every two years on, e.g., changes in

commodity prices and land use• The Commission (Art.17(7),23)

Reports (in addition) every two years on, e.g., impact on social sustainability



Certification schemes

• 13 recognised schemes by the EC (April, 2013)• Examples of voluntary schemes:


Netherlands Technical Agreement

Roundtable of Sustainable Biofuels EU RED

Round Table on Responsible Soy EU RED

Roundtable on Sustainable Palm Oil RED


Example: International Sustainability and Carbon Certification (ISCC), recognised since July, 2011

• ISCC transforms the requirements of the EU Directive into a global certification system


Source: ISCC, 2010


• Mixing of certified and non-certified product flows• % product sold as sustainable certified = %

sustainable certified material entering the process

Mass Balance Method

23.04.2013RED requirements for biofuels and bioliquids Seite: 13Source: ISCC, 2011


“Recent” Developments

• Commission Proposal (COM(2012)595) to minimize the climate impacts of biofuel production (Oct/2012):

Suggests to limit conventional biofuels (with risk of ILUC) currently attainable for fulfilment of EU targets

Suggests to increase the minimum GHG saving threshold for new (after July 2014) installations to 60%

Suggests to provide market incentives (contribute more to RED targets) for biofuels with low ILUC emissions

Suggests the inclusion of indirect land-use change (ILUC) factors in reporting by fuel suppliers and MSs



Conclusions

• Sustainability criteria are a fundamental aspect for the development of supply chains from renewable resources

Liquid biomass available (RED 2009/28/EC) Solid biomass coming?

• Certification systems are able to verify compliance



Thank you for your attention!

Contact: Christoph Neitzel

[email protected]

+49-3843-6930-177


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