Raffaello Garofalo European Biodiesel Board · 2012 exports estimates: 2.7 millition tonnes (EBB...

EBBEuropean Biodiesel Board

Raffaello GarofaloSecretary General – EBB

APPO General Assembly January 30th 2013

EBB PresentationState of Play of European Biodiesel

Raffaello Garofalo

European Biodiesel Board


1. Brief Presentation of the European Biodiesel Market and perspective

• Market Status

• Trends of energy consumption in the EU

2. International biodiesel trade seen from Europe

• Increased biodiesel imports originating from Argentina and Indonesia

• Leading to uncompetitive price setting

3. Sustainability Requirements

• Sustainability Criteria under the RED 2009/28

• The challenges of ILUC modelling




Membership

NEOCHIM

Assocostieri

Green Biofuels Ireland

Procera




1.Brief Presentation of the European Biodiesel Board

The European Biodiesel Board also known as EBB, is a non-profit organisation established in January 1997. Today, EBB gathers nearly 80 members across 21 Member-States, which represents 75% of the European output. Biodiesel is the main European solution to reduce emissions from transport and dependence on imported oil.

EBB aims to promote the use of biodiesel in the European Union and is committed to fulfil the International standards for sustainability in GHG emissions and sustainable feedstock. EBB is constantly working towards the development of improved and

greener technologies.




• EU biodiesel market status – key indicators

� 2009 EU biodiesel production: 9 million tonnes� 2010 EU biodiesel production: 9.5 million tonnes� 2011 EU biodiesel production: 8.6 million tonnes

� 2010 EU biodiesel productive capacity: 21.9 million tonnes� 2011 EU biodiesel productive capacity: 22.7 million tonnes




Overall EU production decreased significantly in 2011, reaching 8.6 million tonnes. This represents a 10% decline compared to 2010.

Yet, as biodiesel represents the main renewable alternative to fossil fuel in transport, biodiesel consumption is expected to rise.

In 2009, the European Commission defined a 10% use of renewable in the transport sector, to which biodiesel will be the major contributor.

Hence, decrease in European production is balanced by higher uncompetitive imports

Raffaello Garofalo Secretary General – EBB





Meeting the 2020 10% target: perspectives from the National Action Plans

• Forecasts can be established on the basis of National Action Plans (NAPs) released by Member States in 2010

• NAPs forecast strong progression of biofuels and specifically biodiesel demand until 2020

• Member States anticipate differentiated path towards 2020 target (linear vs. irregular)




Source: Member States


2. International biodiesel trade seen from Europe

• Increased biodiesel imports originating from Argentina and Indonesia

• Leading to uncompetitive price setting




2. International biodiesel trade seen from Europe• Increased imports of biodiesel from Argentina and Indonesia

2010 exports: 1.7 million tonnes / 2011 exports: 2.5 million tonnes (source: Eurostat)

2012 exports estimates: 2.7 millition tonnes (EBB calculation)

050.000

100.000150.000200.000250.000300.000350.000

Cumulative Biodiesel Imports from Argentina and Indonesia since Jan. 2009 in tonnes

Biodiesel ImportsSource: Eurostat

Provisional USanti dumping duties

Definitive US anti dumping duties




Argentine and Indonesian biodieselimports took over imports originatingfrom the USA

In 2009, the European Commissions imposedimports duties against susbsidised US biodiesel.

While the imposition of measures should havecontributed to the European industry’s recovery, infact, massive imports from Argentine andIndonesia took over the US market share.

In 2011, these two countries alone represent over90% of the international market partners of theEuropean territory and are likely to account for95% of EU biodiesel imports in 2012.

0

500000

1000000

1500000

2000000

2500000

3000000

2008 2009 2010 2011 2012(Sept2012)

2012(est.)

ARGENTINA INDONESIA

USA

Source Eurostat




Source: Eurostat




Distorting price effects in the European market

In addition to such impressive market penetration of biodiesel, the distortive effects of Argentine and Indonesia dumped imports resulted in lowering the European market price.

This led to European producers selling their products below costs.




1000105011001150120012501300135014001450

1/12

/201

1

15/1

2/20

11

29/1

2/20

11

12/0

1/20

12

26/0

1/20

12

9/02

/201

2

23/0

2/20

12

8/03

/201

2

22/0

3/20

12

5/04

/201

2

19/0

4/20

12

3/05

/201

2

17/0

5/20

12

31/0

5/20

12

14/0

6/20

12

28/0

6/20

12

12/0

7/20

12

26/0

7/20

12

9/08

/201

2

23/0

8/20

12

6/09

/201

2

20/0

9/20

12

4/10

/201

2

18/1

0/20

12

1/11

/201

2

European Biodiesel Prices based on Feedstocks ($/tonne)

RME SME PMESource: Market




3. Sustainability Requirements


• The challenges of ILUC modelling





• The biofuels sector is the unique industry abiding by compulsory sustainability criteria to ensure appropriate and certified land management

• Preserving primary forest

• Biodiverse grassland

• Land with high carbon stock

• As well as to demonstrate effective Greenhouse Gas emission savings compared to fossil fuels




2. EBB views on Indirect Land Use Change

The uncertainties of econometrical modelling estimates lead to a great variety in the results on which EU Commission intended to based its legislative proposal

ILUC emission factor

MINIMUM values(max/min various studies)

ILUC emission factor

Only MAXIMUM values(various studies)

IFPRI Min-Max values

Rapeseed -33/+88 52/800 29/81

Soybean 0/92 62/293 38/74

Palm Oil -55/-45 34/214 47/61


Commission proposal on ILUC

� Complete reshape of EU biofuels policy based on ILUC unverified assumptions� RED would be radically reshaped before complete transposition and

implementation� RED revision clause is 2014 not 2012� Commission policy are inconsistent for biofuels (also for advanced biofuels)

� ILUC factors are not an appropriate tool to mitigate human activity� Limitation of 5% for food based biodiesel would not promote used of ‘second’

generation’� Long term perspectives are requested to preserve European employment� Investement in no food biodiesel should be encouraged by appropriate

incentives




EBB proposes:

� Increased knowledge of production pathways

� Respect for natural revision clause of 2014

� Encourage positive and current ILUC mitigation actions

� Develop fair trade of biodiesel in the EU and worldwide through the Register of Biofuels Origination (RBO) for instance

� Encourage dialogue among stakeholders and prevent witch hunting !




Raffaello Garofalo

Secretary General

EBB - European Biodiesel Board

Bld Saint-Michel 34 – 1040 Brussels

Tel +32 2 763 24 77, email: [email protected]

Or visit the EBB web-site : www.ebb-eu.org



Raffaello Garofalo European Biodiesel Board · 2012 exports estimates: 2.7 millition tonnes (EBB...

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