Bio fuels for TransportationPotential and Implications for Sustainable
Agriculture and Energy in the 21st Century(BMVEL/GTZ/WWI)
Christine Clashausen
Workshop Presentation
„Potential of Biofuels in Tansania“Dar es Salaam, Tanzania
September 18 2005
Agr
arw
irtsc
haft,
Fis
cher
ei u
nd E
rnäh
rung
Agr
arw
irtsc
haft,
Fis
cher
ei u
nd E
rnäh
rung
Agriculture
Agriculture , , Fisheries
Fisheriesand Foodand Food
Contents
1. Background2. Objectives3. Project Partner 4. Target Group5. Project Activities6. Timeframe7. Facts of German Bio fuel market
1. Background of the Project
• Future shortage and increasing prices of fossil fuels
• Global climate change due to emission of GHGs
• Income opportunities for farmers in rural areas
• A lot of single studies, no consistent study of prospects and risks of Bio fuels in an international context
2. Objectives
• Comprehensive study of the issue:„Bio fuels for Transportation“ in a global environment (guided by principles of sustainable agriculture, energy, and transport)
• Positioning the study results in the international debate
3. Project PartnersGerman Ministry of Consumer protection, food and agriculture (BMVEL) – commissioner
Agency Renewable Resources (FNR) - Backstopping
German Technical Cooperation (GTZ)
World Watch Institute (WWI) in Washington/USA
4. Target Group
Decision and policy makers who deal with policies for rural development and energy, esp. alternative fuels
- in developing countries
- in Germany
- International
regional„Round Tables“
Study: Tanzania
Study: Brazil
Study: GER and Europe
Study: USA
Study: China
Study: India
regional Workshop
Global Study
Conference (Berlin)
Confernce (Washington)
Analysis Intern. Discussion Consequences
regional Workshop
5. Activities
regional Workshop
regional Workshop
6. TimeframeDuration: April 2005 to June 2006
Procedure:Regional Studies and Workshops
Brazil July – Oct. 2005China Aug. – Oct. 2005India June – Oct. 2005Tanzania Aug. – Oct. 2005
Study – Draft 30. January 2006Study – final 28. February 2006Workshop Berlin 16./17. May 2006Workshop Washington End of May
• Political Guidelines (EU)
Substitution of Fossil Fuels by Bio Fuels:
7. German Bio Fuels Market
2005 2%
2010 5,75%
Source: BMVEL
Schemes to Support Bio Fuels
• Tax exemptionSince 1.4.2004 pure and part of biofuel inblendings (in 1990s only pure biofuels)
• Quality Standard (Biodiesel)
• Subsidy 45 Euro/ha energy crops
Biodiesel Production in Germany
Source: German Agency Renewable Resources (www.fnr.de)
Biodiesel sales in Germany
Source: German Agency Renewable Resources (www.fnr.de)
Overview
Bio fuel Crop Area Production Production costs
Substititionof fuels
Diesel Rape seed
1 Mio. ha(max. 1,5 Mio. ha)
1,2 Mio t (2004)
0,90-1,02 US$
0,60 US$
2,7 %
Ethanol grainSugar beet
500 000 t (since 2005)
Source: German Agency Renewable Resources (www.fnr.de)
Main questions related to German supply
• Will the German automobile and fuel industries expand their demand more in diesel or bioethanol area?
• Should the German Government continue to subsidize production in country?
• Should Germany open up its markets for imports?• How can Tanzania benefit from an increased
demand for Bio fuels in Germany?
Thank you!