Identifying Pathways for Provision of Bio-Energy in SSA: Policy Issues

Identifying Pathways for Provision of Bio-Energy in SSA: Policy

Issues

Charles B.L. Jumbe, PhD (Econ)Centre for Agricultural Research and Development (CARD)

Bunda College of Agriculture (University of Malawi)

in partnership with WIP-Germany & FANRPAN

funded by the EU__________________________________________________________________________________PPresented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5 September 2008___________________________________________________________________________________

Background The COMPETE Project The role of FANRPAN Why do we need policies Scope of Work on Policies The approach Key findings The future Way forward for FANRPAN Take home messages

Outline

___________________________________________________________________________________Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008___________________________________________________________________________________

Fossil fuels continue to be the pivot of economic and social development of all countries around the world

However, on-going debate is now centred especially around three main facets Increasing prices currently reaching US$130 per barrel Ensuring energy security - reducing dependence on imported

liquid fuels from politically fragile states Increased environmental concerns (GHG emission) and air

pollution due to the burning of fossil fuels. Therefore, biofuels are considered as an alternative to

fossil fuels

Introduction


The Competence Platform on Energy Crop &Agroforestry Systems for Arid and Semi-arid Ecosystems – Africa

A 3-year project (2006-2009) funded to the tune of €1.5 mn by the EU under the 6th Framework Programme, Priority A.2.3: Managing Arid and Semi-arid Ecosystems

Objectives to establish a platform for policy dialogue & capacity building to identify pathways for the sustainable provision of bioenergy to enhance the exchange of knowledge on biofuels

development Implementation

Through 7 WPs involving 41 institutions incl. FANRPAN

The COMPETE Project


To produce outputs for the WP 6-Policy Development whose objectives are: To develop & evaluate policy initiatives for

bioenergy development in Africa To develop a roadmap for policy research To provide policy recommendations on how to

harness the potential of biofuels without damaging livelihoods and the ecosystem

To share information from the policy work through seminars and workshops

The role of FANRPAN


Why do we need policies?

Global production of biofuels doubled over the 5 five years and is likely to double again in the next four years.

FAO (2007) predicts that demand for biofuels to grow by 170% in the next three years and to contribute 25% of the world energy needs in the next 15 to 20 years.


Brazil has set targets that all diesel contain 2% biodiesel by 2008 & 5% by 2013

The EU target of 5.75% biofuels share in all transport fuel by 2010 means 18.6 mn. tons of oil equivalent of biofuels

Japan will need 6 bn. litres of ethanol every year to meet the blend ratio of only 3% biofuels.

China will need 22.7 mn. metric tonnes of biofuels to blend 10% biofuel into all Chinese cars by 2020.

Indonesia to increase its palm oil production from 64,000 sq km to 260,000 sq km by 2025.

Sources of Growth


► The United States will use 28.4 billion litres of biofuels for transportation by 2012.

► Across the US, 20% of the whole maize crop went to ethanol in 2006 to meet only 2% of automobile fuel use.

► An extra 80 mn. acres (36 mn ha) of land will be required if maize ethanol alone will be used to meet the US target.

Eliminating gasoline use entirely in USA will require doubling the current 450 mn. acres (200 mn ha) of available for crop production- making it infeasible!

Sources of Growth


How will these targets achieved? Eyes are on AFRICA

Investors are coming to Africa to acquire land & put up plants and machinery for commercial biofuels production

About 4m sq km of land will be grown to energy crops in Southern Africa region (e.g., Jatropha) over the next 5 years

The BIG Question


Scope of Work on WP 6

To explore the extent to which the national development energy policies incorporate strategies for mainstreaming or supporting the development of the biofuel sector.

Key questions:

1. What do the national policies state with regard to bioenergy or biomass energy development?

2. What are the notable gaps in the policies across countries with regard to bioenergy and energy crops development? ___________________________________________________________________________________

Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008___________________________________________________________________________________

Approach

PRSPs/national development frameworks National energy policies Specific biofuels strategies National Trade Policies Regional Development Frameworks (SADC,

ECOWAS, COMESA) International biofuels/trade policies (e.g., WTO,

USA, EU & Asia)


Summary of key findings

National Development/Energy Policies Only the PRSP for Ghana contains specific strategies for

biogas development, with a target of substituting 20% of national gas and oil consumption with biodiesel and 30% of paraffin to be replaced with Jatropha oil by 2015.

Mozambique has adopted a policy for large-scale production of biofuels, including the gradual introduction of blending of fossil fuels with biofuels initially at 5 – 10%.

South Africa has a specific biofuels strategy aims at achieving market penetration of 4.5% in biofuels by 2013.

Despite that Malawi has more than 20 years experience in bioethanol production-it has no specific biofuel strategy



International policies There is no clear WTO position on biofuels that may

affect international trade in biofuels: Biofuels classification within the context of the

WTO harmonized system How subsidies to promote the production or

consumption of biofuels fit in the context of WTO rules, and

Consistency of domestic regulations and biofuels standards.



Incentives Substantial government support has been provided to many

countries that have made significant progress in biofuels such as South African, USA and other countries in Asia & Europe

Implications African biofuel sector is unlikely to be competitive on

international markets due to Subsides and tax incentives provided to producers &

consumers of biofuels in developed countries Law state of art in biofuel production & processing High international standard specifications for biofuels Lack of clear coherent supportive policy on biofuels


Caution!

While the consequences of biofuels on food supply remain uncertain, they cannot be ignored.

Biofuels may be sustainable in some instances but destructive in others.

If left unmanaged, biofuel production will put heavy burden on the poor in most countries in Africa

It is politically and socially immoral (insane) to transform all food into fuel for cars, yet many people go to bed hungry. By taking food off of the table and use it to produce fuel for

cars will make poverty in Africa worse since most people are net food buyers.


The “cost” of inaction

Despite the controversies surrounding biofuels and its effects on the poor, a “wait and see” approach will lead to Food insecurity as more land will be taken away from

mainstream agriculture for growing of energy crops Damage to environment & loss of biodiversity

through clearing of forests and/or encroachment of protected areas for biofuels

Missing out on opportunities of biofuels development To most oil-importing countries, biofuels offers some

relief on the fuel import bill in oil-importing countries


A grain of hope

Agriculture has always adapted to the changing needs of mankind- This should also be possible with biofuels.

If we slow down the pace, allow scientists and technologists to develop technologies that will increase productivity of agriculture to meet growing global

demand for both food and biofuels. allow use of non-food feedstock to produce biofuels

A “happy ending” is possible only if agriculture can supply both energy & food needs

________________________________________________________________________________Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008___________________________________________________________________________________

In conclusion

As we now live in a global village, any significant shift in agriculture landscape in the industrialized world will heavily impact Africa.

Biofuels era is here to stay! As such, countries and everyone must face reality, and adjust accordingly in order to survive in the fast changing world “It is not the strongest of the species that survives,

nor the most intelligent that survives. It is the one that is the most adaptable to change.” Charles Darwin (1809 – 1882) from “On the Origin of Species” (1859).


FANRPAN’s Niche

As biofuels are expanding rapidly in Africa, FANRPAN should be in the forefront:

RESEARCH- To support rigorous research & analysis to provide evidence-based responses to biofuel development Better understand the direct and indirect impacts of

bioenergy development on production systems. Assess technical and policy options for both reducing

the deleterious impacts and enhancing any benefits of biofuels development.


FANRPAN’s Niche

CAPACITY (POLICY ADVOCACY & DIALOGUE)-To provide guidance to governments on biofuels policy & guidelines that safeguards rural communities and the environment

VOICE-To sensitize politicians & civil society on the potential benefits as well as dangers of unregulated biofuels expansion There will be a COMPETE Workshop on ‘Bioenergy

Policies for Sustainable Development in Africa’ in Bamako, Mali from 25 to 28 November 2008


Take-home messages

1. Human well-being & rights of every person at the centre of SSA biofuels strategies, policies, programs.

2. Policies urgently needed in SSA: To protect the poor from exploitation by private interests at the

expense of local livelihoods To prevent from falling into the trap of replacing food crops with

energy crops for producing fuel to power vehicles To prohibit biofuels expansion to protected areas (e.g., forests,

catchment suitable for of biofuels to rural development

3. Define the biofuels development path in SSA: Smallholder focus for rural development (e.g. in Mali &

Tanzania) other than commercial focus Expansion beyond small-scale to be carefully controlled &

monitored___________________________________________________________________________________Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008___________________________________________________________________________________

Thank you for your attention!

[email protected]


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Identifying Pathways for Provision of Bio-Energy in SSA: Policy Issues

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