SUNY College of Environmental Science and Forestry (SUNY-ESF) International Union of Biorefineries (IUB) ,The Biorefinery Institute The Sustainable Biofuels Consensus Sergio C. Trindade strindade@alum.mit.edu Syracuse, NY 6 October 2009 The Energy Menu • Biomass, solar, other renewable energies likely to grow • Biofuels have a role to play in stretching the life of the world’s current energy supply • Cannot be expected to replace the totality of the liquid fossil fuels supplies at any point in time • Will however play a role in the transition towards the long term energy future The Beginning of a New Era % 100 80 70 We are here today Biomass 90 Hydro (firewood) Modern Nuclear Biomass Natural Gas 60 Solar Oil 50 40 30 20 Coal Other 10 0 1850 1900 Source: Nakícenovic, Grübler and MaConald, 1998 1950 2000 2050 2100 Sustainability of Biofuels: Economic: costs below the opportunity cost in the medium term, w/o subsidies Environmental: improves local environment, mitigates climate change, generates carbon credits Social: improves public health, does not compete with food, creates jobs The Sustainable Biofuels Consensus Understanding the many drivers for sustainable trade, consumption and production of biofuels, and the comparative advantage of producing regions combined with demand and technology from consuming Regions – the BioPact At Rockefeller Foundation Center Bellagio, Italy 24-28 March 2008 The SBC Declaration Our Vision is of a landscape that: • provides food, fodder, fiber, and energy services • offers opportunities for rural development • diversifies energy supply • protects biodiversity, sequesters carbon and • contributes to global peace Produced responsibly, • Increased global biofuels trade, transport use and production can be costeffective, equitable and sustainable. • And realizes the great potential for domestic biofuels from agricultural and forest biomass, and from urban wastes, subject to adequate capacity building, technology transfer and access to finance. • Trade in biofuels, surplus to local requirements, opens new markets, stimulates investment to improve lot of many poor countries – the BioPact • Vision responds to the threat of passing a tipping point in climate system dynamics • Urgency and scale of the problem require massive capital investment, more like the energy than land use sectors • Time line for action is decades, not centuries, for shift from fossil carbon to sustainable biomass. • The SBC urges gov’ts, private sector, other stakeholders to take concerted, collaborative and coordinated action to ensure sustainable trade, use and production of biofuels, for biofuels to play key role in • transforming the energy sector, stabilizing climate, promoting worldwide renaissance of rural areas, all urgently needed. Global Biomass Feedstock Potential Contribution of biomass to global primary and consumer energy supplies in 2007 world primary energy demand 470 EJ1 2 1. One ExaJoule equals 1018 Joules or approximately 164 million barrels (or 22.7 million metric tons) of oil equivalent, about a week of current US oil consumption 2. In future some biofuels such as ethanol gels and dimethyl ether (DME) could be produced as clean-burning, affordable and convenient substitutes for inefficient traditional solid biomass combustion used in rural areas of the developing world 2007 WORLD FUEL ETHANOL 50 million m3 EU Asia etc. 4% 4% NA LAC 51% EU 41% Asia etc. LAC NA (NA = US and Canada; LAC = Latin America and the Caribbean; EU = European Union) Share of the Americas (NA + LAC) likely to decrease as other countries expand, but overall output is expected to increase everywhere, especially in Africa . Source: Berg, Christoph (2008). Personal Communication. Food versus fuel? • Recent agricultural commodity price increases largely unrelated to biofuel production • Increasing food and fodder demand, speculation on international food markets and incidental poor harvests due to extreme weather events • Also, high oil and fertilizers costs impacted on the price of agricultural commodities Food versus fuel? • Low productivity in agriculture in many regions resulted in unsustainable land - use, erosion and loss of soils, deforestation and poverty • Increased productivity over time as a result of better farm management, new technologies, improved varieties, energy related capital investment and capacity building could gradually increase the intensity of land use • Thus, sufficient land becomes available to meet the growing demand for food, fodder, fiber and biofuel production World Biodiesel Production, 3.5 billion liters, 2005 1.Germany 2.France 3.Italy 1 4.Austria 2 5.Denmark 6.United Kingdom 3 7.Czech Republic 8.Poland 9.Spain 10.Sweden 11.Other Europe 12.United States 13.Other 4 5 6 7 8 9 10 11 12 Recommendations for implementing the SBC • Integrate and better coordinate policy frameworks • Assess benefits and impacts of biofuels trade, use and production, and monitor them • Address negative indirect effects of biofuels trade, use and production • Reward positive impacts and investments, including through carbon management Recommendations for implementing the SBC • Use informed stakeholders’ dialogues to build consensus for new projects • Increase investment in research, d&d • Build capacity to enable producers to manage carbon and water • Make sure that trade and climate change policies work together • Promote a BioPact. The sustainability of biofuels depends on international trade • Sustainability-certified biofuels trade would ensure that they were produced sustainably • The BioPact would contribute to the global sustainability of biofuels by smoothing supplydemand gaps • If corn-based ethanol becomes untenable economically, socially and/or environmentally, unimpeded trade of ethanol would relieve the price and availability issues caused by fuel ethanol demand for corn • If palm oil based biodiesel pressures food-related palm oil prices, then unimpeded trade of biodiesel would allow the movement of non-palm oil biodiesel into the market, thus mitigating issues of price and availability of palm oil Conclusions •International trade essential for the sustainability of biofuels: economic, social and environmental • To be long-run sustainable, biofuels must cost below the opportunity cost of fuels they replace • Regions of the world that can produce biofuels below their opportunity cost, could export sustainability certified biofuels to regions that cannot do so sustainably – the BioPact • Thus, freer trade of biofuels would promote the economic sustainability dimension of trade