Biofuel National and EU policy and processes Senior adviser Anne H. Johannessen, Department for Pollution Control. 04 November 2008

BiofuelNational and EU policy and processes

Senior adviser Anne H. Johannessen, Department for Pollution Control. 04 November 2008.

2 Norwegian Ministry of the Environment, Oslo, 04. November 2008.

Biofuels

Biofuels

• National policy and processeso Proposal for a national biofuel obligation for road

transporto Sustainabilityo R&D for 2.generation biofuels

• EU processeso Proposal for a directive on the promotion of the

use of energy from renewable sources (renewables directive), including a scheme for sustainable biofuels

o Norwegian position on sustainability and transport


Biofuels

National policy and processes

• Government policy on biofuels first presented in Revised National Budget 2007

• Elaborated in White Paper to the Parliament on Norwegian Climate Policy, June 2007

• Main points:o Proposal for a National Biofuels Obligation,

setting a minimum requirement for the share of biofuels in total fuel consumption for road transport

o Sustainable production and import of biofuelso R&D for second-generation biofuels


Biofuels

… National policy and processes

• Proposal for a National Biofuels Obligation, setting a minimum requirement for the share of biofuels in total fuel consumption for road transport

o Original proposal: 2% share in 2008, rising to 5% share in 2009 and onwards (% by volume)

o Has been through a public hearing process o In parallel with the proposed biofuels obligation,

a proposal for minimum reporting requirements for the biofuels


Biofuels


• Proposal for a National Biofuels Obligation…

o Norwegian Pollution Control Authority (gov’t agency) – evaluation of hearing process and recommendation: step-by-step approach, introduction of sustainability criteria as in coming EU system

o Is at present under consideration in the Ministry/Government

o Other political parties also involved (Climate agreement parties (klimaforliket))


Biofuels


• Sustainable production and import of biofuels

o Strong emphasis on the importance of sustainability of biofuels, both for imports and domestic production, and for both first- and second-generation biofuels

o Recommendation from the Pollution Control Authority to set reporting requirements as a minimum, and develop further sustainability criteria over time (EU)

o Focus on international processes, particularly EUo Norwegian position puts sustainability as top

priority


Biofuels


• R&D for second-generation biofuels

o Cross-cutting political agreement on developing a strategy for increased R&D for 2.gen.biofuels

o 2. gen. biofuels in general expected to have less adverse environmental and social effects

o Sustainability still importanto Strategy expected 2009


Biofuels

Other national measures

• Economic measures

o Biofuels are exempt from CO2 tax

o High-blend biodiesel is exempt from the auto

diesel tax and high-blend bioethanol is exempt

from the petrol tax (both by definition)

o Low-blend biodiesel is also exempt from the

auto diesel tax for the biodiesel share in the

blend


Biofuels

EU processes – Commission proposal

• Proposed Directive on the promotion of the use of energy from renewable sources - COM 2008/19 (Renewables directive) (http://ec.europa.eu/prelex/detail_dossier_real.cfm?CL=en&DosId=196665)

o Commission proposal 23. January 2008o Overall target of 20% renewable energy by 2020o Sub-target of 10% renewable energy for

transport by 2020o Not only biofuels, but also other renewableso Sustainability criteria for biofuels and other

bioliquids (“acceptance criteria”) + reporting requirements


Biofuels

… Commission proposal

• Environmental sustainability criteria for biofuels and other bioliquids

• Requirements to be taken into account for:o Compliance with Directive targetso Compliance with (national) renewable energy

obligationso Eligibility for (national) financial support for

biofuels and other bioliquids


Biofuels

… Commission proposal

• Environmental sustainability criteria for biofuels and other bioliquidso Greenhouse gas savings of at least 35%

compared to fossil fuel comparatorso Not made from raw materials obtained from land

with recognised high biodiversity value (some exceptions)

o Not made from raw materials obtained from land with high carbon stock (some exceptions)

• Reporting requirements at national and EU level on other environmental and social factors


Biofuels

Norwegian position

• Formal Norwegian position to the Commission proposal, 7 May 2008(http://www.regjeringen.no/nb/dep/md/pressesenter/pressemeldinger/2008/

norge-stotter-eus-arbeid-med-a-fremme-ba.html?id=510491)

• Main points:o Strong support for establishment of

sustainability criteria and an international sustainability scheme

o Prevent production and use of biofuels with negative environmental and social impacts, and promotion of best biofuels

o Promote sustainabilityo Sizeable GHG savings in a life-cycle perspectiveo Displacement effects (indirect effects) must be

addressed


Biofuels

Norwegian position

• … Main points:

o Primary objective is reduction of GHG emissions without negative side effects

o Should include criteria for social dimensionso Should include criteria for broader

environmental effects such as water use, pollution and pesticides

o Default values for GHG emissions should be on the conservative side, to promote actual data


Biofuels

Norwegian position

• … Main points:

o Equitable, transparent and robusto Both domestic and importso Both 1. gen. and 2. gen.o Differentiation amongst those acceptableo More technologically neutral approach, with

clearer emphasis on renewable energy for electric vehicles, hybrid plug-ins, hydrogen …

o Potential for cellulosic feedstock sourced from forest and grassland, provided that harvesting is sustainable, including displacement effects


Biofuels

EU processes – EP committees

• EP committee processeso Renewables directive proposal has been through

process mainly in two committees – environment (ENVI) and energy (ITRE)

o ENVI focussing primarily on renewable energy in transport and sustainability issues for biofuels/bioenergy (ENVI final position 15. July)

o ITRE has responsibility for the directive as a whole


Biofuels

ITRE report

• ITRE report (final) voted on 11/9, passed with solid majority. Many of ENVIs recommendations followed up.o Transport goal 5% in 2015 (1/5 from “other”)

and 10% in 2020 (2/5 from “other) and revision in 2014

o “Other”: electricity or hydrogen from renewable sources, energy from waste, residues and ligno-cellulosic biomass or algae produced in vats, or energy from feedstock grown on degraded land with a net carbon benefit regarding land use emissions over 10 years.

o 20% increase in energy efficiency in transport in 2020


Biofuels

… ITRE report

o Criteria for other environmental factors (water, air pollution, soil quality, agrochemicals)

o Specific social criteria (i.e. land use rights, worker rights, health and safety)

o Criteria to ensure compliance with CITES, CBD, Cartagena Protocol, Kyoto Protocol

o Indirect land use effects to be addressedo Greenhouse gas savings 45%, and 60% from

2015o More specifics re. criteria for feedstock sourced

from areas with high biodiversity value or high carbon stock

o Criteria – mostly for all biomass for energy


Biofuels

Further EU process

• At present: Trilogue meetings• Aiming at final agreement by beginning/middle of

December• Finalised at latest spring 2009


Biofuels

Other information and links

• The Government of Norway’s International Climate and Forest Initiative (klima- og skogprosjektet) :

o http://www.regjeringen.no/upload/MD/Vedlegg/Klima/klima_skogprosjektet/faktaark_regnskog.pdf and

o http://www.regjeringen.no/nb/dep/md/tema/klima/regjeringens-klima--og-skogprosjekt-er-i.html?id=526489 (both in Norwegian)

o http://www.regjeringen.no/en/dep/md/Selected-topics/klima/why-

a-climate-and-forest-initiative.html?id=526489 (in English)

• Information Office for Private Sector Development:o http:/www.norfund.no (in English)o http://www.veiledningskontoret.no (in Norwegian)

Documents

Biofuel National and EU policy and processes Senior adviser Anne H. Johannessen, Department for Pollution Control. 04 November 2008