Bioenergy and rural areasBioenergy and rural areas

What about multifunctionality?What about multifunctionality?

European Countryside Movement Seminar

Brussels, European Parliament, 7 November 2007

New Energy Plan for Europe

• On 10th January the Commission set out a “Renewable Energy Roadmap”

– Binding 20% target for overall share of Renewable Energy in 2020 to be shared amongst MS.

– Binding 10% target for the share of biofuels in petrol and diesel in each MS in 2020.

• Package endorsed by Heads of State and European Parliament• Commission now drafting the legislative proposals to turn the

roadmap into a new “Renewables Directive”

Can the EU meet its targets?

Yes

- Agriculture and forest potential

- Bioethanol

- Biodiesel

Production potential of EU 27 agriculture

• The EU might have to reduce its production by 7,5 million tonnes by 2010/2011, i.e. 900 000 ha of sugarbeet out of the total area of some 2,2 million ha in EU 25 (source: CIBE).

• 4 million ha set-aside land available in EU 15.• Increase of agricultural productivity in NMS.• Agricultural land in Romania and Bulgaria.• Market trends for export and animal feedstuffs.• Broad range of raw materials to supply biofuels

production.

Production potential of EU 27forest

• Sustainable Forest Management• Total annual increment of 600 million m3

• 60-65 % of the annual increment harvested• At this moment it is possible to increase sustainable annual

felling considerably, and there is additional potential, especially if combined with management operations to raise productivity

MOBILISATION efforts are identified as the keys to meet the increased demand

And so are IMPROVED SILVICULTURAL measures

EU bioethanol sector(E-bio)

528913

1592

3276

4016

2004 2005 2006 Capacity ofproduction

installed

Capacity ofproduction

underconstruction

EU bioethanol production

Millions of litres

Cereals for bioethanol2006/2007:

3.5 million tonnes out of 264 million tonnes

2007/2008:

5 million tonnes out of 258 millions tonnes

There has been 0 price impact on cereal prices from EU biofuel production so far. Biofuel use only accounts for 1.5% of EU cereals’ tonnage

And – over the long term - recent wheat price increase but a blip

Price development of wheat HRW 2 Kansas City in real terms1913 - 2006, $/t

0

200

400

600

800

1.000

1.200

Source: AGPB

DG AGRI Prospects for agricultural markets and income in the EU 2007-2014 (July 2007)

– We would need the equivalent of 59mt of cereals to meet the 10% target.

– Assuming a productivity increase of 1% per year between now and 2020 – that would give an additional 38mt.

– On top of that there would be between 14 and 17mt from the use of set-aside land.

– Not to mention a possible shift of some exports to biofuel production

Sources for feedstock in the EU (mtoe)

production (first), 5.48

production (first), 3.37

production (second), 3.45

sugarbeets, 0.98

diversion of domestic use, 2.14

export diversion, 3.19 export diversion, 0.45

imports, 1.30imports, 5.08

production (second), 5.25

diversion of domestic use, 4.89

0

2

4

6

8

10

12

14

16

18

20

bioethanol biodiesel/BTL

mto

e

2 mio t bioethanol

14 mio t of cereals

11 mio t of cereals

27 mio t of cereals

18.1 mio t rapeseed, sunseed and soybeans (in seed equivalent)

10 mio t of rapeseed

10 mio t rapeseed, sunseed, soybeans and palm (in seed equivalent)

BIODIESEL : a strong development BIODIESEL : a strong development - EU 27 objectives not out of reach -- EU 27 objectives not out of reach -

11,5 MnT

FAME

0,5 MnT

3,5 MnT5 MnT

Other

0

5

10

15

20

25

2000 2005 2007 5,75%objective

10% objective

Mn

T

20 MnT

EOA – July 12th, 2007 12Hyp : Diesel fuel cons : 175 MnT in 2020

Rapeseed is developing in EU Rapeseed is developing in EU and neighbouring countriesand neighbouring countries

Mn Ha 2005 2007 Agronomical

potential

Total EU 27 4,6 6,2 8,4

Germany 1,3 1,5 1,8

France 1,2 1,5 2

UK 0,5 0,6 0,7

Poland 0,5 0,7 1,2

Romania 0,1 0,3 0,7

Russia 0,25 0,7 1,5

Ukraine 0,2 0,8 1,2

EOA – July 12th, 2007 13

Production : already increased by 5 MnT Production : already increased by 5 MnT – a potential of 15 MnT additionnal – a potential of 15 MnT additionnal

0

5

10

15

20

25

30

35

40

45

2003 2005 2010 2015-2020

18 MnT

38 MnT

32 MnT

rape11 MnT

22 MnT28 MnT

16 MnT

23 MnT

EOA – July 12th, 2007 14

What about rapeseed oil ? What about rapeseed oil ? - EU used to export 1MnT- EU used to export 1MnT- Will have to import 1 MnT- Will have to import 1 MnT

0

2

4

6

8

10

12

14

Mn

T Biodiesel uses

Traditionnaluses

Production

110%

93%

89%

103%

2001 2005 2015-20202010

Self-sufficiency ratio

EOA – July 12th, 2007 15

Meals : an opportunity for feedMeals : an opportunity for feed improved protein meals self-sufficiencyimproved protein meals self-sufficiency

0

5

10

15

20

25

30

35

40

45

Mn

T s

oyb

ean

mea

l eq

uiv

alen

t

Other mealsuses

Rapeseedmeal uses

Production

16%

31%

25%

18%

2001 2005 2015-20202010

Self-sufficiency ratio

EOA – July 12th, 2007 16Meals of rapeseed, sunflower and soya

There will be a statutory system for Biofuel sustainability in the legislative proposals with minimum standards:

– GHG savings from biofuels

– avoidance of major carbon stock loss

– avoidance of major biodiversity loss.

COPA-COGECA’s views

• Equivalent requirements for biofuels imported from Third Countries

• Equivalent requirements in Third Countries must be approved by community authorities like in other sectors (organic farming)

R&D

• Optimise production system and broaden the used feedstocks types (second generation)

• Improve the conversion process of biodiesel and the bioethanol fermentation

• Implementation of the biorefinery process in order to obtain value-added from co-products.

COPA-COGECA work goes on

Fuel quality Directive:– Derogation for the direct incorporation of bioethanol of 8 kPa– The total oxygen compound content of 3.7% m/m must be

increased to 4% m/m – The target imposed on fuel suppliers to reduce greenhouse gas

emissions from fuel by 1% annually from 2011 must be replaced with a mandatory annual biofuel incorporation target.

– The reports on greenhouse gas emission monitoring required of fuel suppliers from 2009 must be replaced with reports on biofuels.

– A specification applicable to E 85 in compliance with already existing national standards must be added.

COPA-COGECA work goes on

Standards– Maintain EN 14214 Standard– Incorporation of 10 % EN14214 biodiesel in

diesel EN 590– Incorporation of 10 % bioethanol in gasoline

=> revision of EN228

COPA-COGECA work goes on

Trade– Maintain EU import duties– Multilateral import quota– Stop to the double subsidy on B99

COPA-COGECA work goes on

Wood mobilisation

– Strengthen co-operation and capacity-building (forest co-operatives and forest owner associations)

– Support of infrastructure and technical development

– Support of management operations

– Build-up of functioning markets for bioenergy

– Bring bioenergy production closer to local energy consumption

– Research and development (harvesting technology e.g.)

– Safeguard ownership rights

COPA-COGECACOPA-COGECACOPA-COGECACOPA-COGECA

Thank you for your attentionThank you for your attention

COPA-COGECACOPA-COGECA

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1040 Bruxelles1040 Bruxelles

mail@copa-cogeca.be

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