Initiative for the Sustainable Provision of Raw Materials for the Material Use of Biomass

Initiative for the Sustainable Provision of Raw Materials for the Material Use of Biomass


Content

Initiative for the Sustainable Provision of Raw Materials for the Material Use of Biomass 3

1. Development of the Market2. Raw Materials used3. Problems and Solutions 4. What are the goals of INRO? 5. Participants6. Starting premises for the INRO7. Sustainability Criteria agreed upon by the INRO 8. Quality Criteria agreed upon by the INRO9. Bill „Passing through the Value Chain“10. Networking11. Schedule 12. How to proceed with the INRO

Development of the Market

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Problems and Solutions

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• Problems:– Public and NGOs call for ecological and social minimum standards – Differentiation of the markets leads to an imbalance of the

biomass supply• Solutions:

– International standards for the certification of sustainability– Efforts to expand the certification of foods, feed and industrial use– The international certification is supported by German and

European initiatives:• Directive 2009/28/EC of the European Union on the promotion of

the use of energy from renewable sources• CEN TC 383 "Sustainability criteria for the production of biofuels

and bioliquids for energy"• CEN-TC 411 “Bio-based products”• Voluntary German initiative INR


What are the goals of INRO?

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• Definition of criteria for sustainable supply of biomass for industrial processes

• Acceptance and voluntary commitment of the companies for the purchase of certified biomass

• Identical criteria for all sectors in order to avoid distortions of competition

• Comparable criteria for agricultural production• Strengthening of the advantage for the costumer • Protection of the companies against allegations by the press, NGOs• As a "first mover“, opportunity to influence the embodiment of

international and national rules


Participants

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National and international Companies

National and international Companies

FederationsFederations

ScienceScience

Commodity Purchasers and Traders

Commodity Purchasers and TradersGovernment OrganizationsGovernment Organizations

Certification SystemsCertification Systems

Environmental and Development Federations

Environmental and Development Federations


Participants (II)

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• Companies:


Linde Engeneering Dresden GmbH

Participants (III)

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• Industrial federations and associations:

• Ministries and authorities:


Participants (IV)

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• Science:

• Environmental and development organizations:

• Certification systems:


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Starting premises for the INRO (I)

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• Based to a large extent on the Directive 2009/28/EC of the European Union on the promotion of the use of energy from renewable sources (RED), for example, in determining the sustainability criteria

• Establishment of overall conditions for certified goods• No establishment of own certification standard, but

usage of existing certification systems


Certified end product Certified end product

Starting premises for the INRO (II)

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Production on the fieldProduction on the field

SaleSale

Certification of sustainability

along the criteria

Certification of sustainability

along the criteria

Processing of raw materials

Processing of raw materials

Processing by manufacturing

companies

Processing by manufacturing

companies

Certificate is passed throughout the value

chain

Certificate is passed throughout the value

chain


Starting premises for the INRO (III)

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INRO does not replace the ecobalance of the entire value chain of the product!


Starting premises for the INRO (IV)

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Plants that should be reviewed:• Oilseeds: e.g. rapeseed, palm oil, soybean oil,

castor-oil plant• Starch / sugar yielding plants: e.g. sugar cane,

sugar beets, corn, maize• Fiber yielding plants: e.g. hempseed, flax, linen,

cottonAt a later date:• Lignocellulose yielding plants • Animal fats


Sustainability Criteria agreed upon by the INRO - Abridged version (I)

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• Ecological criteria: – Protection of natural biotopes

• Areas with high natural value • Areas with high carbon stock • Peat bogs• Partly wooded areas

– Soil protection– Water protection – Consideration of crop rotation – Environmentally compatible use of fertilisers and

pesticides– Sustainable waste management


Sustainability Criteria agreed upon by the INRO - Abridged version (II)

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• Social criteria (amongst others):– Freedom of association– No forced labour– No child labour– No discrimination – Availability of accommodation – Access to drinking water– Protective clothing – Training and further education– Adequate remuneration and working contracts– Backing in case of illness – Proof of land use right – Compliance with the rights of indigenous peoples Initiative for the Sustainable Provision of Raw Materials for the Material Use of Biomass

Sustainability Criteria agreed upon by the INRO- Ecological Criteria (I)

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• Protection of natural biotopes (No Go Areas) – Protection of areas with high conservation value– Biomass not permitted to originate from wooded areas

(point of reference 1/1/2008)– Biomass not permitted to originate from areas reserved for

nature conservation purposes (point of reference 1/1/2008)

– Biomass not permitted to originate from Greenlands with a high degree of biodiversity (point of reference 1/1/2008)

– 2. Protection of areas with high carbon stock– Biomass not permitted to originate from Wetlands (point

of reference 1/1/2008)– Biomass not permitted to originate from continuously

forested areas (point of reference 1/1/2008)Initiative for the Sustainable Provision of Raw Materials for the Material Use of Biomass

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– 3. Protection of peat bogs– Biomass not permitted to originate from Peat bogs

(point of reference 1/1/2008)– 4. Partly wooded areas– Biomass not permitted to originate from partly wooded

areas with a high degree of biodiversity (point of reference 1/1/2008)

– Inclusion of all cultivated areas of an agricultural holding• Sustainable agricultural cultivation/good

professional practice– 1. Soil protection– Avoiding soil erosion– Soil quality: preservation of soil structures and organic

matter

Sustainability Criteria agreed upon by the INRO- Ecological Criteria (II)


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– 2. Water protection– Ensuring water quality– Avoiding contaminant input into rivers and

groundwater– Efficient irrigation and controlled water consumption– Preservation of natural river courses– 3.Consideration of crop rotation– 4. Environmentally sound use of fertilisers and

pesticides– Controlled use of fertilisers and pesticides (according

to demand)– Environmentally sound storage of chemicals

Sustainability Criteria agreed upon by the INRO- Ecological Criteria (III)


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– Exclusion of internationally prohibited chemicals and agrochemicals

– Sound handling of chemicals and sound disposal of chemicals containers

– Documentation of chemicals use– 5. Waste management– Use of agricultural by-products– Environmentally sound waste storage and disposal of

organic residues and wastes of the farm in consideration of waste prevention measures as well as recycling of waste from the plantation

– 6. Greenhouse gas emission– Greenhouse gas emissions measured in unit: x kg

CO2eq/kg– Defining reduction targets

Sustainability Criteria agreed upon by the INRO- Ecological Criteria (IV)


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• 1. Compliance with the criteria of the ILO core working standards at the operative level

– Freedom of association and right to collective bargaining– No forced labour– No child labour– No discrimination

• 2. Further social criteria: – Availabilty of acccomodation– Access to drinking water– Safe working conditions– Protective clothing– Trainings and further education

Sustainability Criteria agreed upon by the INRO- Social Criteria (I)


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– Adequate remuneration and working contracts– Backing in case of illness– Possibilities to lodge complaints on the operative level– Possibilities for children to attend primary school– Time recording, recording of overtime, breaks, holidays– Proof of land use right by the producer– Inclusion of stakeholders into the proof of land use rights– Fair contracts with farms and agricultural holdings– Compliance with the rights of indigenous peoples– Biomass production does not impair food security

Sustainability Criteria agreed upon by the INRO- Social Criteria (II)


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• Recording system for each unit of production• Registration of cultivation areas in use• Involvement of subcontractors• CR (Corporate Responsibility) guidelines for business

relations• Anti-corruption and bribery measures• Transparency of payment flows

Sustainability Criteria agreed upon by the INRO- Economic Criteria (I)


Quality Criteria agreed upon by the INRO - Abridged version

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• Aim: • In order to assure the credibility of the

certification, it is essential that the certification – is transparent– is protected from abuse– is developed with the participation of NGOs– certifies thoroughly (e.g. actually performing on-

location inspections)


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• In principle– Strategic document (e.g. statutes) and rules of communication

are available and transparent– Announcement of the geographic scope in which the

certification system operates– Notification of all certification bodies that are working for the

certification system – The system is accurate, reliable and protected from abuse– Disclosure of all certificates in an accessible database / on the

website of the certification system– Disclosure of membership fees and royalties– Quantity-based fee and/or other funding rules to ensure the

financial independence of the certification system. Third-party funds must be below 20%.

Quality Criteria agreed upon by the INRO - Detailed version (I)


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– Clear definition of sustainability criteria for each country, in which it carries out its activities

– National and regional adaptation of global criteria – Regular review of the standard criteria and principles

including all stakeholders (at least every five years)– Provision of procedures containing guidelines for economic

operators– Within the framework of the certification, it is not possible to

only carry out a partial certification of surfaces; minimum requirements (land use, compliance with ILO criteria) must be implemented on all lands of an owner

– Commitment of the participants of the system to comply with said requirements

Quality Criteria agreed upon by the INRO - Detailed version (II)


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• Verification– Opposition proceedings and appeal mechanism for both the

auditors and the stakeholders are present– Standardised and procedural rules mandatory for all

certification bodies and checklists of requirements for verification and performance on the indicators level

– Standards/Requirements for certification bodies regarding expertise, equipment and infrastructure as well as the number and qualifications of the staff

– Standards/Requirements for certification bodies regarding the recognition by delegating authority or specialised accreditation as well as the procedure for the issuance of certificates.

– Mutual independence, free from any conflict of interest on standards, certification body and company

Quality Criteria agreed upon by the INRO - Detailed version (III)


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– Independence of the auditor from the standard provider and from the company to be verified

– Determination of the specific risk factors for the control of growers and primary gatherers and requirements for risk assessment and risk management: defining methods of control, the audit frequency and audit sampling requirements.

– Clear guidelines of rules for traceability– Ability to group certification with a distinct group definition

Quality Criteria agreed upon by the INRO - Detailed version (IV)


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– Sanctioning mechanism, which includes different levels, from the lowest level of information about minor variations (“minor”) to severe deviations (“major”) with defined periods of time and sanctions in case of non-fulfillment. The catalog of sanctions should also include rules for partial and complete certificate divestiture as well as explanations on how to deal with fraud. Furthermore, requirements for and checks of the basic qualifications of the auditor and mandatory training courses and seminars should be in place

– Risk- and quality management of the standard

Quality Criteria agreed upon by the INRO - Detailed version (V)


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• Transparency– Annual reports of experiences with the activities of the certification

system– Disclosure of the governance structure and the

members/participants– Public presentation of the certification standard with all its

normative documents– The certification system places the certification bodies under

obligation to actively hold dialogue, particularly in high-risk areas, in order to enable proactive stakeholder participation

– Transparent design of decision-making structures

Quality Criteria agreed upon by the INRO - Detailed version (VI)


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– Publication of a summary of the results of primary and surveillance audits with an explanation on the deviations and the agreed upon time and action plan

– Requirements for documents that enable traceability (e.g. delivery notes)

– Information about the location of the certified areas (GPS data), if available

– Public measures for prevention of abuse and fraud

Quality Criteria agreed upon by the INRO - Detailed version (VII)


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• Management– Certificate of registration, business license and organizational

chart are transparent.– Agreement on continuous improvement of the system and for

system users– Reviews of the frequency and methods of controls and the

reliability of the data– Well-balanced cost-benefit-structure, participation of the various

stakeholders during the development, implementation, and during the process.

– Standard was developed in line with ISEAL* (*International Social and Enviromental Accreditation and Labelling Alliance)

Quality Criteria agreed upon by the INRO - Detailed version (VIII)


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– Standard was developed with the involvement of scientific expertise. The standard requires of its members a commitment to the continuous reduction of harmful effects on the environment (soil, water, air, biodiversity) and the establishment of a monitoring process, which measures the effect of certification.

Quality Criteria agreed upon by the INRO - Detailed version (IX)


Book & Claim Mass balance Segregation

Bill Passing through the Value Chain (I)

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ZZ

ZZ

Z

Z

Z

ZZ

Z

X

XX

X

Z

X

X

Z


Supply Chain Model

Book and Claim Mass balance Segregation

Trade Physical goods and sustainability certificate are traded separately.

Certified renewable raw material is mixed with other raw materials.

The certified raw material is kept separately throughout the entire value chain.

Storeaccounting

Not applicable since physical goods and the sustainability certificates are traded separately.

Bookkeeping entry of the logging into of raw materials and the de-recognition of raw materials. The de-recognized amount shall not exceed the acquired certified amount.

Store accounting is possible to 100 %

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Bill Passing through the Value Chain (II)


Certification Product is traded independently from the certificate. The certificates each represent a certain amount of sustainable raw material.

Certificates are issued only for the actually used amount of certified raw material.

Product and certificate are identical. It is assured throughout the entire value chain that the product consists only of the certified raw material.

Example Eco-electricity, RSPO RED, Biofuel Sustainability Ordinance, Biomass-electricity-sustainability ordinance, ISCC, TÜV SÜD Standard, RSPO

Raw materials, such as cocoa, for the food industry, RSPO

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Bill Passing through the Value Chain (III)


Advantages

Can be implemented quickly and at low cost.

Allows the identification of sustainable goods, without having to build additional infrastructure for a parallel supply chain.

Single-origin goods, which are in principle traceable.

Disadvantages

No direct traceability

No direct traceability Very complex and expensive, since an additional infrastructure has to be built.

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Bill Passing through the Value Chain (IV)


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Two phases!

Production primary distributor INRO

primary distributorprocessors end producer

Not INRO

Bill Passing through the Value Chain (V)


Networking (I)

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• In particular, the European level is necessary to achieve the acceptance of INRO

• Examples for the international orientation of INRO:• European Leadmarket Initiative: EU-PPP Bioeconomy • ISO/CEN • AISE Charter (European detergent industry)• Bioplastic Feedstock Alliance (USA)• Eco Vadis (the European purchasing initiative of the chemical

industry in which the suppliers are audited) • European Industrial federations such as.:

– ACEA - European Automobile Manufacturers' Association – CLEPA - European Association of Automotive Suppliers– European Chemical Industry Council– European Bioplastics Initiative for the Sustainable Provision of Raw Materials for the Material Use of Biomass

Networking (II)

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• Ecosense • ELL (European Ecolabel) • German and European Lubricant Manufacturers Association • Sustainability principles by the grocery trade chains (e.g. Rewe,

Edeka) • Aid by Trade Foundation • PlasticsEurope (European plastics manufacturing association) • Sustainable agriculture network • European Federation of Biotechnology• AISIL (umbrella organization certification) • Network bridge (joint undertaking of the EU Commission) • regular exchange with the initiative “Green Deal" from the

Netherlands and other initiatives from other countries (e.g. Italy, UK, France, Belgium ..)


Schedule (I)

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2013 • 19.6. Seventh Session INRO• Networking starting from now!• Summer Break: publicity materials and Website• After summer break: Working group pilot

projects• 9.10. Information event Germany • 10.10. Eighth Session INRO • As of autumn: Presentation for federations,

trade, NG0´s • 27.11. Ninth Session INRO


Schedule (II)

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2014 • Start of pilot projects

• Spring: Information event EU • Spring: Information event German

Parliament (Deutscher Bundestag) • Tenth Session INRO • Final conference 1st phase• Will it continue?


How to proceed with the INRO

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• Evaluation of the companies experiences and further development of the decisions

• Pilot projects and/or application experiences• Extension of the initiative to the EU• If necessary, transfer to other raw materials

such as wood and waste materials


Thank you for your interest and your attention!

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Documents

Initiative for the Sustainable Provision of Raw Materials for the Material Use of Biomass