Sustainability Criteria For
International Trade in Wood
Pellets
Dana Collins – Bioeconomy Programs Specialist (CIF-IFC)
Tat Smith – University of Toronto & CIF-IFC President
Outline
• Drivers for Forest Bioenergy
• Outcomes of European Climate Mitigation and
Bioenergy Policies
• Sustainability Governance – Standards, Policies
and Certification
• Implications of Multiple Levels of Governance on
Forest Management and Trade
• The Role of IEA Bioenergy Task 43 and the
Canadian Institute of Forestry
• Recommendations and Take-Home Questions
2
Drivers For Forest Bioenergy
•
•
•
•
•
Climate Change
Diversification of forest sector
Reduce forest stresses
Bioeconomy opportunities
Value for ecological services
3
Indicators of a Changing
Global Climate
http://www.climatechange2013.org/
4
What Role Can Forests Play?
« In the long term, sustainable forest management
strategies aimed at maintaining or increasing forest
carbon stocks, while producing a sustained yield of
timber, fibre, or energy from the forest, will generate the
largest sustained mitigation benefit. »
IPCC 2007 ch 9: Forestry, AR4, Group III
5
Major opportunities facing NA forest
Sector:
• Develop renewable
energy sector
• Realize benefits to
economy, environment
and society
Martin Holmer, 2001
6
CHP Direct
LVL large
SPF East large
SPF East medium
Nexterra Syngas dryer
LVL Small
NBSK + H&P Large
OSB large
NBSK + H&P Medium
OSB medium
Pellets East large
SPF East small
MDF
NBSK + H&P Small
NBHK + H&P Large
OSB small
LWC
NBHK + H&P Medium
Particle Board
Pellets East medium
Pellets East small
SPF East Large + Pellets Large
SPF East Large + Pellets small
Source: FPAC 2010.
BCTMP + H&P Medium
NBHK + H&P Small
Power Direct
OSL
Newsprint
What Technologies will Attract
Capital?
60%
50%
40%
30%
20%
10%
0%
-10%
-20%
7
Gt CO2
GHG Reduction Strategies
60
55
Baseline emissions 57 Gt
CCS 19%
50
Renewables 17%
45
40
Nuclear 6%
35
Power generation efficiency
and fuel switching 5%
End-use fuel switching 15%
30
25
20
15
End-use fuel and electricity
efficiency 38%
BLUE Map emissions 14 Gt
10
5
WEO 2009 450 ppm case
ETP2010 analysis
0
2010 2015 2020 2025 2030 2035 2040 2045 2050
Source: OECD/IEA 2010
• Need a global 50% CO2 cut by 2050
• Various technologies are needed to reduce energy-related CO2 emissions
• EU has tackled this challenge with substantial goals
8
Outline
• Drivers for Forest Bioenergy
• Outcomes of European Climate Mitigation and
Bioenergy Policies
• Sustainability Governance – Standards, Policies
and Certification
• Implications of Multiple Levels of Governance on
Forest Management and Trade
• The Role of IEA Bioenergy Task 43 and the
Canadian Institute of Forestry
• Recommendations and Take-Home Questions
9
Increased Demand Brings New
Challenges & Opportunities
• Current bioenergy
– Modern bioenergy: 10-15 EJ/year
– Total bioenergy: 50 EJ/year
• Deployment level of IPCC scenarios by 2050
– 440-600 ppm CO2eq target: 80-150 EJ/year
– <440 ppm CO2eq target: 118-190 EJ/year
• Current production of other biomass
– Industrial roundwood: around 15 EJ/year
– Major agricultural crops: about 60 EJ/year
– Is a 10-fold increase possible and sustainable?
10
Wood Pellet Consumption in Europe
Source: WPAC11
Increased Demand for Wood Pellets
12
Traditional Forest Products Markets Dominate
Bioenergy remains a marginal, residual (mill & harvest) assortment
STUMPS
3
Potential 60 - 80 m
For energy 50 - 60 m3
STAND:
3
Round wood 250 m
Forest residues 100 m3
At least one third
of the logging residues and
stumps will be left in the
forest as a fertiliser
1 hectare
HARVESTING
ROUND WOOD
WITH BARK
1 m3= 2,5 i-m3
FOREST
RESIDUES
250 m3
40 - 60 m3
Bark, sawdust and
other wood residues
3
SAWMILL/PULP MILL 190 - 210 m
E.Alakangas
Wood fuel
TOTAL WOOD FUELS
150-180 m3 = 300 - 360 MWh
Heat production = 170 - 200 MWh
Electricity production = 85 - 100 MWh
13
Total Volume and Source of Forest
Energy Must Change
< 5 TWh
Recycled wood
Forest sector
> 50 TWh
~ 3 TWh
Imports
0.7 TWh
Thinning
Residues
4.4 TWh
Chipwood
1 TWh
By-products
5 TWh
Black liquor, Pine oil
> 35 TWh
Source: Björheden, 2004 14
Outline
• Drivers for Forest Bioenergy
• Outcomes of European Climate Mitigation and
Bioenergy Policies
• Sustainability Governance – Standards, Policies
and Certification
• Implications of Multiple Levels of Governance
on Forest Management and Trade
• The Role of IEA Bioenergy Task 43 and the
Canadian Institute of Forestry
• Recommendations and Take-Home Questions
15
Relevant EU Legislation
• Emission Trading System (ETS) of 2005:
• Carbon cap-and-trade system for EU
• Biomass co-firing considered C-neutral
• 2013: adding aviation sector, introducing auctioning of
allowances
• Criticisms: price of C is too low, biomass shouldn’t be considered
C-neutral
• Energy Efficiency Directive (2011):
• Encourages CHP and district heating, could stimulate an increased
demand for pellets
• Member States must develop heating and cooling plans, set energy
efficiency targets by 2014
16
Relevant EU Legislation
• EU (Illegal) Timber Regulation:
• Enters into effect in 2013
• Prohibits illegal wood and wood products from entering EU markets
• May influence where pellets are sourced from
• Renewable Energy Directive (RED) of 2009:
• To enable the EU to reach 20/20/20 goals
• Mandatory RE targets for all Member States
• Member States must have Action Plans (NREAPs), outlining strategy
17
Origins of Sustainability Criteria in the
Forestry Sector
1987: Brundtland Report
In 1987, the World Commission on Environment and Development (WCED),
which had been set up in 1983, published a report entitled “Our common future”.
The document came to be known as the “Brundtland Report” after the
Commission's chairwoman, Gro Harlem Brundtland.
It developed guiding principles for sustainable development as it is generally
understood today.
The Brundtland Report stated that critical global environmental problems were
primarily the result of the enormous poverty of the South and the non-sustainable
patterns of consumption and production in the North. It called for a strategy that
united development and the environment – described by the now-common term
“sustainable development”. Sustainable development is defined as follows:
“Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs.”
http://www.are.admin.ch/are/en/nachhaltig/international_uno/unterseite02330//
Origins of Sustainability Criteria in the
Forestry Sector
Major events:
• Earth Summit in Rio de Janeiro, 1992
• Kyoto Protocol, 1997
• Clean Development Mechanisms, Johannesburg, SA, 2002
http://unfccc.int/files/press/releases/application/pdf/pressrel200802.pdf
Origins of Sustainability Criteria in the
Forestry Sector
The member countries represent about 90 per cent of the world's temperate and boreal
forests in the northern and southern hemispheres. This amounts to 60 per cent of all of
the forests of the world.
(Note: Europe's forests are not included - they are being addressed by the Helsinki
or Pan-European Process.)
http://www.mpci.org/
Origins of Sustainability Criteria in the Forestry
Sector
Countries participating in international processes defining C&I for
sustainable forest management
Source: Rametsteiner and Simula 2003
Origins of Sustainability Criteria in the
Forestry Sector
Voluntary certification schemes
• Forest Stewardship Council (FSC)
• Canadian Standards Association (CSA) - now within PEFC
• Sustainable Forest Initiative (SFI) - now within PEFC
• ISO 14000
Growth in Certified Forest Area
(million ha)
http://www.grid.unep.ch/23
24
Pelkmans et al. 2014
very important
Stupak et al. 2012
Standards
International
conventions
important
moderate
Montreal
MCPFE
ITTO
ATO
African Dry Zone
Dry Forest Asia
Tarapoto
Near East
Lepaterique
UNFCCC
Kyoto Protocol
CBD
ILO
Ramsar
CITES
CCD
ELC
Cartagena
Legislation
ISO TC248
CEN TC383
GBEP
NTA8080
160
140
120
100
80
60
40
20
0
EU RED
RFS2
EU CAP
LCFS
BAEZ
EU TR
EU Natura 2000
Number of respondents
Some considered more important
than others…
International SFM
processes
not important
25
Outline
• Drivers for Forest Bioenergy
• Outcomes of European Climate Mitigation and
Bioenergy Policies
• Sustainability Governance – Standards, Policies
and Certification
• Implications of Multiple Levels of Governance
on Forest Management and Trade
• The Role of IEA Bioenergy Task 43 and the
Canadian Institute of Forestry
• Recommendations and Take-Home Questions
26
Implications of Multiple Levels of
Governance
• Rapid global proliferation of certification systems
• Diverse approaches to standards
• Diverse approaches to assessments (audits and
reporting)
• Potential for consumer confusion
• Potential impacts on trade
• Potential failure to achieve sustainability goals
• Need for harmonization
J. van Dam et al. 2010
27
Q9
Q12
Q15
The role of certification?
Are the many (see slide 24) initiatives (together)
adequate?
yes
I don't
know
Voluntary initiatives or regulatory requirements?
I don't
know Voluntary
initiatives
no
Is voluntary certification essential?
A mix of
both
I don't
know
Strict
regulations
no
yes
Stupak et al. 2012
28
Effectiveness of Scheme Support Measures
to Alternatives to Certification?
Other
Non-certification systems
Multilateral initiatives such as the GBEP
Bilateral or multilateral agreements
Stepwise certification
Biomass sourcing programmes
International criteria in national legislation
Certification of entrepreneurs
National verification
Group certification
0
20
40
60
80
100
120
Number of respondents
high
moderate
low
I don't know
Stupak et al. 2012
29
Is Redundancy a Problem?
12%
Problem with redundancy?
7%
Yes, there is an overlap/redundancy
No, they all have added value
81%
I don't know
If yes, which problems….?
Other
Discrimination in raw material use
Lack of transparency
Trade barriers
Lack of consistency
Confusion abt sustainability definitions
0
I don't know
20
40
60
80
Number of respondents
No
100
Yes
> 50% said -- clear advantages to keeping the diversity of schemes and initiatives
Stupak et al. 2012
30
Multiple Levels of Governance
Graphics: Jessica Murray, University of Toronto.
Adapted from: Kittler et al. 2012
31
Outline
• Drivers for Forest Bioenergy
• Outcomes of European Climate Mitigation and
Bioenergy Policies
• Sustainability Governance – Standards, Policies
and Certification
• Implications of Multiple Levels of Governance on
Forest Management and Trade
• The Role of IEA Bioenergy Task 43 and the
Canadian Institute of Forestry
• Recommendations and Take-Home Questions
32
IEA Bioenergy Task 43: Biomass
Feedstocks for Energy Markets
• Task 43 will address issues critical to mobilizing
sustainable bioenergy supply chains, including biomass
markets and the social, economic and environmental
consequences of feedstock production and supply
• The objective is to promote sound bioenergy
development that is driven by well-informed decisions
in business, governments and elsewhere.
33
IEA Bioenergy inter-Task Strategic Project
‘Mobilising Sustainable Bioenergy Supply Chains’
The overall objective for 2013-15 period is to enhance the
mobilization of sustainable bioenergy supply chains globally.
• Identification of the necessary elements of a successful and
sustainable bioenergy supply chain.
.
• Develop new and existing frameworks that seek to understand
and explain the underpinning elements that contribute to
sustainable supply chains.
• Include elements of availability of feedstock, applicable
conversion processes, GHG balances, land use issues,
governance mechanisms and other aspects of bioenergy
production and supply.
• Integration across complex systems which leads to transfer of
knowledge to new and upcoming bioenergy technologies or
34
feedstocks in different regions of the world.
Task 43 Provides a Platform for
Increased Dialogue on Sustainability
• Savannah, GA
Workshop. A two day
event with 60
participants from 9
countries. Diverse
interests represented.
• Quebec workshop. Two
day event with
participants from 11
countries
• http://www.ieabioener
gytask43.org/task-43events-2/
35
Canadian Institute of Forestry’s Role
• CIF has assumed
responsibility for Canada’s
involvement in IEA Bioenergy
Task 43 for the triennium
2013-2015
• Support from:
– Ontario Power Generation,
British Columbia Ministry of
Forests, Lands and Natural
Resource Operations
(Competitiveness and
Innovations Branch), Canadian
Council of Forest Ministers
(Forest in Mind Program),
Alberta Innovates Bio Solutions
36
CIF Knowledge Exchange
• Publications in The
Forestry Chronicle
• Presentations,
Lectures and
Conferences
• Integration of Task
43 work into other
CIF-SEEK biomass
projects
37
Outline
• Drivers for Forest Bioenergy
• Outcomes of European Climate Mitigation and
Bioenergy Policies
• Sustainability Governance – Standards, Policies
and Certification
• Implications of Multiple Levels of Governance
on Forest Management and Trade
• The Role of IEA Bioenergy Task 43 and the
Canadian Institute of Forestry
• Recommendations and Take-Home Questions
38
Recommendations
• Trans-Atlantic dialogue is needed to resolve conflicts in policies and
unintended consequences.
• Opportunities exist to engage actors globally involved with policy
formulation and development and deployment of bioenergy supply
chains from Canadian forests to European and Asian bioenergy
consumers.
• Researchers, foresters, and policy makers must work closely so that
policy is science-informed and critical gaps in knowledge regarding
sustainability criteria of forest bioenergy supply chains are filled.
• Canadian participation comes at a critical time. Without a Canadian
context in Task 43, we risk forgoing valuable inputs and
perspectives as one of the most globally significant pellet exporters.
• Note importance of participatory processes for policy to be
considered ‘legitimate’ and reflecting stakeholder values
39
Key Questions Remain
• What is the state of knowledge regarding site-specific and
global effects of international bioenergy supply chains on
SFM & GHG emission reductions?
• Is policy adequately informed by the scientific state-of-art?
• How well does the existing mix of governance mechanisms
achieve SFM, GHG emission reductions, and reliable
labelling of sustainable products in the market place?
• Is international supply chain governance robust and fair?
Should we be concerned about potential trade disputes?
• What process is required to improve governance?
40
Thank you!
Questions..?
Dana Collins – dcollins@cif-ifc.org
Tat Smith – tat.smith@utoronto.ca