Environment and trasnport_nusa_urbancic_22_marzo

www.transportenvironment.org

Nusa Urbancic,T&E

How to fix the ILUC

problem once and for

all?


The problem


Policy in the EU

• 10% binding target for renewables in

transport (RED) and 20% overall target

• 6% carbon reduction target for transport

fuels (FQD)

• ‘Sustainability criteria’ still do not include

indirect effects (ILUC)


Use of biofuels until 2020Development of renewable energy in transport in EU 27

0

5000

10000

15000

20000

25000

30000

35000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

kto

e

2nd generation

Hydrogen

Other Biofuels

Electricity in transport

Bioethanol

Biodiesel

Biodiesel

Bioethanol


Proposed reform

• Limit contribution of biofuels from food

crops to 5%

• Include ILUC factors, but only for

reporting

• Introduce 2 and 4-times accounting for

advanced biofuels

Currently under discussion in the EU!


Biofuels direct emissions


Indirect land use change


ILUC is real

• Six studies for the Commission and

numerous other scientific reports

“We urge you to align the EU biofuels policy

with the best scientific knowledge and take

into account emissions from indirect

changes in land use.”Union of Concerned Scientists letter to Barroso

Signed by 210 scientists and researchers


Imports of vegetable oils


EU biofuels policy driving deforestation

Speculators clear land in hopes of selling

to palm companies operating in their area;

often, palm companies don’t buy and land

is abandoned and degraded

Source: UCS 2011, Elson 2011

Palm production by country


And costing a lot of money

• Without any action on ILUC CO2 savings

maybe 5%

• Abatement cost = €2500 /tonne CO2

• Price of carbon in the ETS = 4.5

EUR/tonne CO2

• Public subsidies to biofuels industry in the

EU 11 billion USD (IEA 2011)

Source: ICCT


Biofuels in Spain

• Mostly biodiesel – no GHG savings

• Capacity utilization for biodiesel only 23%

(the lowest in the EU)

• Imports of biodiesel amount to 89%

• Spanish government opposed to the EU

reform to limit biofuels to 5%

• Wants to protect existing investment


What to do with existing

investments?


Our proposal

• Science-based, feedstock-specific ILUC factors

• Grandfathering caps biofuels at 5% and

gradually phase out high-ILUC biofuels post

2017

• Ensures that only low ILUC biofuels are

supported

Combines environmental effectiveness and a clear

framework for new low-carbon investment with fair

treatment of past investment


How to meet 10% target?

• Reduce energy demand (15%)

• Encourage renewable electricity in rail and

road transport

• Biofuels from true wastes and residues, i.e.

municipal waste


How to meet the target?


Additional slides


EU palm oil trade


EU rapeseed oil trade


Cost efficiency of ILUC options

Environment and trasnport_nusa_urbancic_22_marzo

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