Embed Size (px)
Citation preview
for the World Economy
BiofuelsBiofuelsTrade and CertificationTrade and Certification
Gernot Klepper
The Kiel Institute for the World Economy
Kiel, Germany
1st Workshop ESSP Bioenergy Piracicaba, 19-21 July 2008
for the World Economy
OutlineOutline
• Biofuels as a global commodity• Imports and Exports• Certification and Sustainability• Certification Process• Open Questions
Outline
for the World Economy
France30%
Germany18%
Hungary2%
Italy5%
Poland7%
Spain15%
Sweden4%
UK9%
Other EU10%
N&C America41%
South America35%
Asia14%
Oceania0%
EU6%
Other Europe3%
Africa1%
45 Mio. m³ Ethanol were produced in 2005 , in 2006 50 Mio. m³ are expected
Only about 2,7 Mio. m³ were produced 2005 in the EU, for 2006 3,1 Mio. m³ are expected
Quelle: F.O. Licht
Bioethanol Production 2005Bioethanol Production 2005
Biofuels as a global commodity
for the World Economy
EU85%USA
7%
RoW8%
Worldwide Biodiesel production is 3,8 Mio. t in 2005
Germany53%
France16%
Italy12%
Poland3%
Czech Rep.4%
Slovakia2%
Others EU-2510%
Of which 3,2 Mio. t are produced in the EU, more than half of it in Germany
Production of Biodiesel 2005Production of Biodiesel 2005
Quelle: Diester Industrie International/ EBB
Biofuels as a global commodity
for the World Economy
Biofuel trade is growing faster than Biofuel trade is growing faster than production production
Biofuels as a global commodity
Source: F.O. Licht, 2007; UNICA
14,113,0
10,611,5
12,6
14,7 14,716,1
17,8
20,2
0
5
10
15
20
25
1998 1999 2000 2001 2002 2003 2004 2005 2006 20070,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
1998 1999 2000 2001 2002 2003 2004 2005 2006/07
Bioethanol Production Total Bioethanol ExportsMill. m³Mill. m³
for the World Economy
Ethanol is classified as an agricultural good and enjoys much higher Ethanol is classified as an agricultural good and enjoys much higher tariff rates than biodiesel that is classified as an industrial goodtariff rates than biodiesel that is classified as an industrial good
EU
USA
India
Brazil
• 0.192 €/liter (undenatured)• 0.102 €/liter (denatured)• 101 developing countries enjoy duty free access. Brazil
is not among them (GSP, EBA, ACP)
• 0.1427 US$/l plus small ad valorem tariff (2.5% undenatured and 1.9% denatured)
• Some countries in the region enjoy various forms of duty-free access (CBI, NAFTA, CAFTA)
• 20% ad valorem (termporarily lifted, e.g. in February 2006 when sugar prices surged and ethanol shortage was possible)
• Duty-free trade within Mercosur
• 6.5% ad valorem• Major vegetable oil producers (e.g. ARG, IND, MLY)
have duty-free access (covered under GSP)
• 1.9% ad valorem
• n.a.
Import Duty Bioethanol Import Duty Biodiesel
• 182% undenatured• 30% denatured• For use by chemical and petroleum industry: 10%• Rates not totally clear, many changes take place
• 12.5%• Crude palm oil: 50%
• Ethanol‘s agricultural classification allows countries that impose high tariff rates on ethanol more time to liberalize ethanol trade, protecting domestic producers longer
• Ethanol‘s agricultural classification allows countries that impose high tariff rates on ethanol more time to liberalize ethanol trade, protecting domestic producers longer
Biofuels as a global commodity
for the World Economy
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2003 2004 2005 2006 2007
tho
usa
nd
cu
bic
met
ers Total Africa
ROW
U.S.A.
Total Asia/Pacific
EU
Other America
Brazil
Exports by RegionExports by Region
0
500
1000
1500
2000
2500
3000
3500
4000
4500
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
mil
l. l
itre
s Other
European Imports
US Imports
CBI Imports
Imports by RegionImports by Region
Imports & Exports
for the World Economy Imports & Exports
-500
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
mil
l. G
allo
ns
United States
European Union
Japan
India
Canada
South Korea
ROW
… … and the forecast for the next decade (FAPRI)and the forecast for the next decade (FAPRI)
Net-Imports by RegionNet-Imports by Region
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
mil
l. G
allo
ns
Brazil
China
Net-Exports by RegionNet-Exports by Region
for the World Economy Imports & Exports
for the World Economy
An internationally traded commodity such as bioethanol is homogeneous, An internationally traded commodity such as bioethanol is homogeneous, i.e. it is not possible to judge the sustainability of a particular biofuel! i.e. it is not possible to judge the sustainability of a particular biofuel!
GHG savings
Sustainable cultivation
Protection of natural habitats
Social sustainability
– 10% GHG savings per unit of energy until 2020(1% p.a. from 2011)
– opposed by EU-Parliament
– Proof of minimum GHG savings: 35% is necessary for accounting towards biofuel targets
– n.a.
.
– Production according to environmental criteria of Cross Compliance (EC 1782/2003)
– n.a. – No feedstocks from high biodiversity land, wetlands, untouched peatland, continuously forested areas
– n.a. (is being asked for in current discussions)
– n.a. (is being asked for in current discussions)
Biomass sustaina-bilty decree
– Proof of minimum GHG savings: 30%/ 40% from 2011
– Otherwise no accounting on quota or tax reduction possible– Cross Compliance/ Good Agricultural Practices or similar regulations
– Otherwise compliance with certain regulation
– No cultivation in high nature value areas
– n.a.
Fuel Quality Directive
Renewable Energy Directive
Certification & Sustainability
for the World Economy
Certification Requirements:Certification Requirements:
The EC proposal requires minimum GHG savings, the protection of certain land types and cross compliance
Requirements for biofuels and their production
GHG savings of at least 35%
Not from high biodiversity value land
Forest undisturbed by significant human activity
Designated nature protection areas
Not from land with high carbon stock
Wetlands, including pristine peatland
Areas with a Continuous Forest Cover
Cross Compliance (EC1782/200317)
Environment
Good Agric. and environ-mental condition (Art. 5)
Carbon stock losses from land use change ruled out
Grassland with high biodiversity
Certification & Sustainability
for the World Economy
Biofuel value chain
Relevant biofuels for pilot phase
• Bioethanol• Biodiesel• Vegetable oil• ETBE
Mineral oil industry
Trader Biofuel producer
Feedstock produer/
plantation
Order process
Delivery process
National governmental
body
Metasystem
En
do
rsem
ent
Certificates
Certification of Biofuels in the Value Chain:Certification of Biofuels in the Value Chain:
Certification Process
