Introduction to biomass certification schemes

November 2011

an introduction to:

Biomass Certification Schemes

Emiel Hanekamp

Partners for Innovation BV

Achieving Sustainability

an introduction to: Biomass Certification Schemes


an introduction to:

Biomass Certification Schemes

Congress:

Biomass West & Central Africa 2011

Accra, Ghana

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Partners for Innovation

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– Consultancy firm in Amsterdam (Netherlands) since 2004

– Experienced staff (>15 years) with many years in international projects

– Expertise subjects:

Governmental clients:– Private sector clients:

1. Sustainable biomass

2. Product innovations

3. Energy and Climate policies

European Commission, Dutch

Ministries of Environment and

Economic Affairs, Municipalities of The

Hague and Amsterdam and etcetera

E+Co, Jatropha Alliance, SunBiofuels,

GreenResources, Bio2Watt, Sara Lee,

Desso, DAF Trucks, MaxiCosi (Dorel),

SITA and etcetera



Our Sustainable Biomass services

– Our ambition: help biomass actors to be successful

– Our services:1. sustainability pre-certification services2. business plan development3. feasibility studies4. market potential studies5. policy studies6. capacity building7. carbon footprints and CDM carbon credit development

– Country coverage: Europe: EU and UkraineSouth America: Argentina, Brazil and ColombiaAfrica: Mozambique, Ghana, South Africa, Zambia, Madagaskar and TanzaniaAsia: Indonesia and Vietnam

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Examples of projects

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Towards Sustainability Certification of Jatrophabio-fuels in Mozambique

Selection of a certification

scheme

GHG calculations Sun Biofuels value

chain

Sustainability assessment of

plantations

http://www.jatropha-alliance.org http://www.agentschapnl.nl

Guidance on selection of a biomass certification

scheme (May 2011)



Examplary identified

gaps

Principle 2:

EIA conducted but

social management

plan missing

>> 9 points

Principle 9:

Water sources

inventory missing.

>> 6 points

Gap scores :

10: adequate,

8: needs improvement

5: needs significant improvement

0: not covered

Gap analysis for biomass certification (RSB)

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Driving forces for sustainable biomass certification

1. Risk reduction

� Operational risks

� Reputational risks

2. Increased efficiency

3. Legislation

� Sustainable biofuels

� Illegal logging

4. Market opportunities

You want to EXPORT TO EU, US or Japan?

You need certification!



There is only very little factual information available about benefits. In forestry, improved

market access was found to be the most consistent economic effect (Cashore 2006).

SSI mentions price premiums for FSC (4-20% in USA and EU) and PEFC (0-1% in USA and EU)(SSI review 2010).

Other studies indicate positive cost/benefit ratios for forest and fair trade initiatives (International Tropical Timber Council 2004, FAO 2007)

(Figure: adapted from Simula et al 2004)

Total benefits

Direct

(additional revenue)Indirect

MonetaryAdditional salesPrice premium Non-monetary

Social

Organizational

Environmental

Cost reduction

Avoidance of loss

of sales revenue

Other

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Total Costs

Direct cost Indirect cost

Compliance with the

performance criteria

Internal costs External auditing Compliance with the

management system

criteria

Resource

assessment

and inventory

R&D

Planning

Monitoring and

internal auditing

Operational

Documentation

Initial costs

Preparation

Cost of surveillance audits

Participation in

the process

Plantation management

Ecological

Social

Management

There is also little information available on costs.

SSI (2010) indicates direct cost between

€0.1 and €1.5/ha/yr for sustainable forestry initiatives.

Savcor (2005) reports direct costs between €0.02 and €0.8/ha/yr in

Scandinavian forestry, and indirect costs between 0.5€ and 14€/ha/yr.

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20%

18%17%

8%

1%

0%

5%

10%

15%

20%

25%

Global banana

exports

Global managed

forests

Global coffee

production

Global tea

production

Global cocoa

sales

Biomass-for-

energy trade

Market share of commodities certified

to a set of ten major social and environmental standards

(Source: SSI Review 2010)

?

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430

7653 51

25 229 8 5 4 1

0

100

200

300

400

500

All Energy Food Farm Fair Forest Fuel Wood FSC Biomass Biofuel

Many ecolabels exist (Number of ecolabels per keyword. Source: www.ecolabelindex.com)

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Innovation

Capital efficiency

Risk management

Margin improvement

Growth enhancement

Shareholder return

Diversity

Human rights

Community outreach

Indigenous communities

Labour relations

Health & Safety

Environmental regulations

Global climate change

Access to potable water

Crisis management

Environmental justice

Clean air, water & land

Emission reductions

Zero waste, releases and spills

Biodiversity Resource efficiency

Product stewardship

Life cycle management

Products to services

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Job creation

Skills enhancement

Local economic impacts

Social investments

Business ethics

Security



83

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7

0

20

40

60

80

100

GBEP (2008)

initiatives on

sustainable bioenergy

development

FAO (2011)

bioenergy regulatory

frameworks, standards,

score-cards

EC RED (2011)

standards submitted

for recognition (as far

as known)

EC RED (2011)

standards approved

Bioenergy sustainability initiatives/standards (Number of standards or initiatives. Sources: GBEP, FAO, EC, own research)

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1992

SAN

1993

FSC

1997

Globalgap

2002

GGL

2006

Laborelec

2007

RSPO

2008

Greenergy

2009

Neste Oil

2010

2BSvs

Abengoa

BSI

ISCC

REDcert

Red Tractor

RTRS

2011

Biograce

NTA8080

RSB

20151990 1995 20102000 2005

Many standards went live only recently (source: own research)

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So, how to select a standard in such an early market?

� We developed a simple method

+� Information on 18 most relevant

biomass (for energy) standards

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Step 1 Step 2 Step 3

1.1 Assess your organisation’s ambitions and situation

1.2 Talk with your customers about their needs and requirements

2.1 Fit with organisational and biomass chain characteristics

2.2 Does the scheme facilitate trade of your product?

2.3 Does the scheme meet legal requirements?

2.4 Is the scheme credible?

2.5 Easiness to comply with the standard’s requirements

2.6 Fit with your willingness to pay for the scheme benefits

2.7 Fit with customer needs and requirements

3.1 Talk with certification bodies about your plans

3.2 Talk with your customers about selecting a certification scheme

3.3 Make a final choice and engage

Is biomass certification

appropriate for your business?

Which certification

scheme(s) to select?

Make a final choice

and engage

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Steps Question / Issue to decide Answer

Is biomass certification

appropriate for your business?

1.1a Describe the expected revenues (preferably in numbers) and market opportunities (short and long term), both national and export.

1.1b What regulatory requirements are relevant for your organisation and what could be their impact?

1.1c Are there operational risks (environmental, social and financial) associated with your organisation?

1.1d Is there an intrinsic motivation to do business in an ethical and responsible way? What are you already doing?

1.1e Is an increase of your operational costs a problem? Do the advantages outweigh these extra costs?

1.2 Does your customer want your products to be certified? Which scheme? If not, what are your customer’s needs and requirements?

Which certification scheme(s) to select?

2.1 Which schemes fit with your organisational and biomass chain characteristics?

2.2 Which schemes facilitate trade of your product?

2.3 Which schemes meet the relevant legal requirements?

2.4 Which schemes are credible?

2.5 Which schemes are the easiest to comply with?

2.6 What are the scheme and compliance costs?

2.7 Which schemes fit with your (potential) customer needs and requirements?

Make a final choice and engage

3.1 Talk with certification bodies about your plans

3.2 Talk with your customers about selecting a certification scheme

3.3 Make a final choice and engage



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Third best fitBest fit Second best fit

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FSC ISCC NTA8080 REDcert RSB

Standard setting

Global multi-stakeholder

dialogue


dialogue with important

influence of German

stakeholders

Multi-stakeholder


influence of Dutch

stakeholders

No standard setting (directly

taken from RED). Advisory committee on developments


dialogue

Coverage of sustainability

principles

Not focused on RED complianceBroad coverage of sustainability

issues. No coverage of

GHG

Beyond RED

Broad coverage of sustainability

issues

Beyond RED


issues

Aligned to RED Beyond RED


issues

Accreditation

By the independent accreditation

body

By the German Federal

Government Agency for

Agriculture and Food (BLE)

By the Dutch Accreditation Council and

IAF members




By an independent accreditation

body (to be defined)

Third party verification Yes Yes Yes Yes. Yes

Type of organisation

IndependentNot-for-profit

IndependentMix of not-for-profit and profit

Independent Not-for-profit

Independent Profit


Adherence Full Member

of ISEAL Alliance

Affiliate of ISEAL Alliance

Member of and ISO

Full Member of ISEAL Alliance20




Standard setting


dialogue



influence of German

stakeholders

Multi-stakeholder


influence of Dutch

stakeholders

No standard setting (directly

taken from RED). Advisory committee on developments


dialogue

Coverage of sustainability

principles

Not focused on RED complianceBroad coverage of sustainability

issues. No coverage of GHG

Beyond RED


issues

Beyond RED


issues

Aligned to RED Beyond RED


issues

Accreditation

By the independent accreditation

body




By the Dutch Accreditation Council and

IAF members




By an independent accreditation

body (to be defined)

Third party verification Yes Yes Yes Yes Yes

Type of organisation

IndependentNot-for-profit

IndependentMix of not-for-profit and profit


Independent Profit


Adherence Full Member of ISEAL Alliance

Affiliate of ISEAL Alliance

Member of CEN and ISO

Full Member of ISEAL Alliance21



Market uptake of certification schemes


Number of certificates

issued

19,749 CoC certificates

1,028 FM/CoCcertificates

(Feb 2011)

621certificates

(Oct 2011)

3certificates

(Oct 2011)

945 certificates

(Oct 2011)

None(2 in

progress)

(Oct 2011)

Year of going live 1993 2010 2011 2010 2011

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Number of certificates

issued

19,749 CoC certificates

1,028 FM/CoCcertificates

(Feb 2011)

621certificates

(Oct 2011)

3certificates

(Oct 2011)

945 certificates

(Oct 2011)

None(2 in

progress)

(Oct 2011)

Year of going live 1993 2010 2011 2010 2011



ISCC NTA 8080 REDcert RSB Other

Control Union

yes yes yes Applied

2BSvs, Bonsucro,

FSC, GGL,

Globalgap, PEFC,

RTRS, RSPO,

Fairtrade, UTZ

certified

yes yes yes - no info

DNV - - - Applied no info

DQS yes - yes Applied PEFC

yes yes yes Applied2BSvs, Bonsucro,

FSC, RSPO, RTRS

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Our ambition: help biomass actors to be successful

Slide 24 of 24

Introduction to biomass certification schemes

Business

Transcript of Introduction to biomass certification schemes