European policies and the mobilisation of biomass for non food

Andreas Pilzecker European Commission, Directorate-General for Agriculture

2

Biomass

is the most important source of renewable energy

is the only renewable source of carbon

3

Biomass as C-source “Natural photosynthesis by chlorophyll

generates carbohydrates and oxygen from the abundant raw materials CO2 and H20 using sunlight as the driving force.”

“The stability of CO2 makes economical utilization of CO2 as a feedstock for the synthesis of fuels or chemicals in artificial photochemical systems a formidable challenge.”

4

Biomass (source: DBFZ)

5

The EU aims at

mitigating climate change increasing security of its energy supply

6

EU climate and energy package 20 (30) % reduction of GHG emissions 20% share of renewable energy 20% increase in energy efficiency

By 2020

7

RES-Directive 20% RE share 10% RE in transport No specific target for bioenergy Ensure sustainability

8

Where are we? 88 Mtoe of biomass was consumed for

energy purposes (primary energy consumption) within the EU-27 in 2006, representing an 8% increase from 2005

In terms of final energy consumption, bionergy accounted for about 7-8 % in 2008

9

Where could we be in future? Projections using modelling by PRIMES and

GreenX estimate that around 165-195 Mtoe of biomass would be used in 2020 to achieve the 20% renewables in primary energy target.

The Environment Energy Agency (EEA) report of 2006 concluded that significant amounts of biomass can be theoretically available to support ambitious renewable energy targets: 235 Mtoe in 2020 is deemed feasible even if strict environmental constraints are applied

10

20% RE target in 2020

Maximum biomass contribution needed: 230 Mtoe With 15 % of imports, maximum

contribution from EU: 195 Mtoe

Maximum contribution from agricultural crops: 63 Mtoe

Maximum contribution from other than agricultural biomass 132 Mtoe

11

Status of biomass ressource assessments (BEE project) Reasons behind great disparities in estimated

potentials are: different definitions of concepts of potentials lack of data on (current) biomass production different methods of estimating (future) biomass

production and availability different assumptions on system-external factors

that influence potentials (such as land use and biomass production for food and fibre purposes)

12

13

Status of biomass ressource assessments (BEE project)

The review of over 70 studies found that total 2020 potentials estimated for the EU-27 differ to a considerable degree: 76 Mtoe - 480 Mtoe

deviations increase over time the potentials for residues from agriculture and

forestry, and organic waste, do not exhibit any clear trend, the deviations in potentials are smaller.

the biomass category mainly responsible is dedicated energy crops

14

EU-25 biomass production potential

2003 (actual) 2010 2020 20300

50

100

150

200

250

300

69

187

235

295

EU25 biomass production POTENTIAL (mtoe)

total

wood direct from forest

wastes and residues (includes wood direct from forest in 2003)

energy crops from agriculture

Sources: Eurostat (2003) / European Environmental Agency (projections)

15

Conclusions There are some unused sources which are

available in the short to medium term. In the long term, potential is basically fixed – apart

from energy crops Biomass will make a substantial contribution to the

RE target Biomass for energy will have to double, to triple? by

2020 Many uncertanties: dedicated energy crops, forest

biomass

16

Concerns about increased use of biomass Forests: risks of overuse should be assured, all EU

Member States have signed up to the Ministerial Conference on the Protection of Forests in Europe (MCPFE)

Sustainaility criteria in the RES-Directive and the Fuel Quality Directive (biofuels and bioliquids)

Sustainability criteria for biomass for other energy? Competition with food production

17

How to increase the use of biomass? RES-Directive: National Renewable Energy Action Plans EU Forestry Action Plan: necessary elements for national

action plans. EU Standing Forestry Committee advocates Member States

to develop a strategy on mobilisation and efficient use of wood.

The Commission's Communication on innovative and sustainable forest based industries asks that Member States pay attention to the different uses of biomass when developing the national action plans.

Research, Development and Demonstration Agriculture/Common Agricultural Policy

18

The Common Agricultural Policy Since 1992 in a continued reform process European farmers are free to decide what

and how much to grow – and for what purpose

Farmers react to market signals Prices in the EU are close to world market

level (grains, oilseeds), except for sugar

19

Health Check of the CAP

Main policy questions: How to adjust to new market opportunities? How to simplify the Single Payment

Scheme? How to respond to new challenges?

20

Health Check – Market orientation Examination whether/to what extent

production based (coupled) instruments still needed

Energy crop scheme: Mandatory targets will stimulate demand and high prices encourage production

Obligatory set-a-side: A tool for managing (limiting) supply, original purpose has lost its relevance

21

(Mio ha) 2004 (EU-25) 2005 (EU-25) 2006 (EU-25) 2007 (EU-27)

Set-aside 0,5 0,9 1,0 1,0

Energy premium 0,3 0,6 1,3 2,8

Without specific support 0,8 1,6 1,4 0,2

Total 1,6 3,1 3,7 4,0

EU: Non-food cropland

22

Health Check: Energy Crop Premium Energy crop premium to be abolished Premium proved to be of very limited

efficiency (equivalent to 15 €/t rapeseed, current market value is 300 €/t)

Red tape = costs incurred by farmers Main driver for production is the dynamic

market development (due to political targets)

23

Health Check: Compulsory Set-aside Abolish compulsory set-aside 3.7 million ha of compulsory set-aside,

including 0.8 million ha for non-food (2007) Half of the area will come into production,

i.e. 1.5 to 2.0 mio ha. Neutral for the supply of biomass, demand

is main driver

24

Health Check Starch production aid abolished, for similar

reasons as for the energy crop premium Intervention (obligatory purchase of grains

to a guaranteed minimum price) is limited to bread wheat only

25

Health Check

To account for the EU's new challenges made available additional funds for bio-energy under the European Rural Development Fund (EAFRD), an increase of 3.2 billion Euros for 2010-2013.

By mid-2009, Member States had to revise their national rural development plans and programmes taking into account the new challenges, including biomass for energy from agricultural and forestry sources.

26

CAP has set land free (mln ha)

0

1

2

3

4

5

6

7

8

9

10

2005 2006 2007 2008

Uncultivated land, incl set-aside Sugar beet

27

The reformed CAP Provides for low-cost feedstocks Increases the land base available Supports actions which increase biomass

supply and use in rural areas through the Rural Development policy

28

Food versus Non-Food EU agriculture’s first role is and will remain to produce food! The RE target for transport would require about 10-12 mln ha

of EU arable land in 2020, much less than previous projections had expected.

Recent CAP reforms bolster the impact on EU land use By-products soften the impact on third countries’ land use Share of non land-based biomass sources will increase There is at least 4 mln ha of uncultivated arable land in the EU

29

Material versus energy use EU is active in the promotion of both Control&command and economic

instruments are predominant for energy use Biomass for energy has (will have)

sustainability requirements Bio-based products may offer new

functionalities and higher product quality The cascades concept is not yet exploited

30

Final conclusions EU promotes and regulates biomass at all

stages in the chain: production of feedstocks, production of biofuels, distribution, market

EU uses several types of instruments: Command and Control, economic, collaboration, communication, diffusion

EU sets the framework, Member States formulate national biomass policies