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Biofuels and Renewables
Sustainability and Bioenergy Standards
Jason Clay, Ph.D.
VP and Managing Director, Markets
WWF-US
15 October 2007
It’s not what to think, it’s how to think
Lid
A Latte
208 liters per cup
Water
Cup
Sugar
Milk
Energy
Wrapper
Coffee
142.8 liters
= 1 liter
Agriculture’s Global Footprint
33% of earth’s surface in crops or
grazing but 55% of habitable area
3
World Agriculture and the Environment
•
•
•
•
•
•
Habitat loss—55% and counting
Water take—70% of human use, >60% wasted
Loss of soil—half of topsoil lost globally; 70-90% of farmers loose more
carbon/year than put back
Agro-chemicals—more used in agriculture than any other industry
Pollution—more than any other human activity
Climate change—25-40% of greenhouse gases that contribute to
climate change
And now there is the issue of biofuels and renewables
Bioenergy from Agriculture
ƒ Biodiesel
ƒ Palm oil
ƒ Cellulosic Ethanol
ƒ Canola/Rape
ƒ Crop residue (rice, wheat, corn,
sorghum)
ƒ Soy
ƒ Perennial grasses
ƒ Jatropha
ƒ Temperate tree plantations
ƒ Castor oil
ƒ Tropical tree plantations
ƒ Sunflower
ƒ Safflower
ƒ Bioethanol
ƒ #2 Heating/Furnace Oil
ƒ Palm oil
ƒ Renewable Energy
ƒ Sugarcane
ƒ Crop residue
ƒ Sugar beet
ƒ Temperate tree plantations
ƒ Corn/Maize
ƒ Tropical tree plantations
ƒ Wheat
ƒ Grapes
Key Environmental Impacts
Impacts / hectare and impacts / liter
ƒ Habitat and biodiversity loss
ƒ Net carbon impacts (footprint or LCA)
ƒ Soil health and erosion
ƒ Water use and effluents
ƒ Agrochemicals and total toxicity
ƒ Air Pollution
ƒ Net energy
ƒ GHG and
ƒ Processing
Focus—Better Practices or Performance?
Performance Curve
Performance
Shift
Regulation
Best
Performance
7
Some Key Issues for Each Throughput
ƒ Cost of production
ƒ Compared with petroleum-based products
ƒ Compared with each other
ƒ Energy
ƒ Total energy yields per hectare
ƒ Net energy per hectare
ƒ Non-renewable energy requirements (direct and embedded)
ƒ Subsidies or tariffs
ƒ Which can improve most (e.g. management, genetics)?
ƒ Which can be grown on degraded lands?
Standards for Bioenergy
ƒ Global and for multiple crops—“Meta-standards”
ƒ Principles, Criteria, Indicators, and Standards
ƒ Strategic—target key impacts
ƒ Measurably reduce impacts (e.g. focus on results not BMPs)
ƒ Developed through transparent and multi-stakeholder processes
ƒ On-farm and cumulative impacts
Global Context
ƒ Lack of comparable data to make informed decisions
ƒ No agreed on methodology
ƒ To compare across throughputs
ƒ To make lifecycle analyses
ƒ Focus is on price and profitability, not sustainability or net impacts
ƒ Need to anticipate impacts—where will production shift in 20 years?
ƒ What crops will dominate biofuels—which are dead ends?
Goals:
ƒ Understand how to think about these issues, not what to think.
ƒ Focus research efforts on key issues to enable comparisons.
Energy Productivity (Liters / Hectare / Year)
Liters of
Heating Oil
Liters of
Biodiesel
Liters of
Biodiesel
Liters of
Bioethanol
50,000
Energy Efficiency of Biofuels Compared to
Petroleum
Energy Input to Energy Output
Avg 12-15
Range 2-36
Avg 7-8
Range 1-12
Avg 1.3
Range .5-5.5
40
Greenhouse Gas Production
Soil Impacts
50
Each Commodity Has Key Issues
ƒ Sugarcane
ƒ Burning fields
ƒ Displacement
ƒ Corn/Maize
ƒ Energy in/out and source of energy for processing
ƒ Palm oil
ƒ Deforestation
ƒ No sulphur, less N20
ƒ Soy and canola
ƒ Soil erosion
ƒ Crop rotation
ƒ Cellulosic
ƒ Non-food, monocrop perennials—no food by-products or ability to shift focus
ƒ Direct and indirect habitat loss
Key Issues for Any Standards
ƒ Reasonable people will disagree—need to build consensus
ƒ Appropriate unit for standards
ƒ Farm
ƒ Processing plant
ƒ Watershed or landscape
ƒ Standards Performance
ƒ Minimum performance for all issues
ƒ Average performance
ƒ Continuous improvement (e.g. 10, 30, and 50% GHG reductions over time)
ƒ A single meta-standard for all bioenergy
World Commodity Price Shocks and GDP
Note. Figure shows the impact of a two standard deviation change of the country-specific commodity price index (Deaton Miller index) on real output (GDP) in a typical low-income country
The impact is the percent change in GDP for low income countries, on average.
Source: World Bank staff calculations
Recent Sugar and Corn Prices—And the Future?
Note. Figure shows the impact of a two standard deviation change of the country-specific commodity price index (Deaton Miller index) on real output (GDP) in a typical low-income country
The impact is the percent change in GDP for low income countries, on average.
Source: World Bank staff calculations