THE EU AND PALM OIL:

WHAT’S GOING ON?

11

WHAT’S GOING ON?

RSPO Roundtable 9 Kota Kinabalu, 24 November 2011

Nina Činkole

Delegation of the European Union to Malaysia

PRESENTATION OUTLINE

EU Context & Policy background

Biofuels:

EU Renewable Energy Directive (EU RED)– Sustainability criteria

22

– Sustainability criteria

– Voluntary Certification Schemes

– Latest developments

– Implications for Palm Oil

– Food labelling:

EU Regulation on the provision of food information to consumers

EU Context

More than 2 Europeans in 3 see climate change as a very serious problem

Almost 80% consider that taking action to combat climate change can boost the economy

33

combat climate change can boost the economy and jobs*

Push not only by the EU and the Member States but foremost by the European public

Moving towards low-carbon economy

*Special Eurobarometer 372: Climate Change (June 2011)

Climate & Energy Package (2008)

-20%

100%

-20%-20%

The 20-20-20 EU Policy

44

Greenhouse

gas levels

Energy

consumption

Renewables in

energy mix

+20%

Part of the EU climate and energy package

A single, comprehensive Directive for 20% renewable energy in the EU in 2020

Combat climate change

EU Renewable EnergyDirective (2009)

55

Combat climate change

Security of energy supply

Green jobs and innovation

MS Mandatory targets

Specific 10% target for renewable energy in transport

Biofuels sustainability - Have to make sure biofuels contribute to the objectives of the policy

No conversion of land with high carbon stock since January 2008 (wetlands, continuously forested areas, peatlands)

No raw material from land that had high biodiversity value from January 2008

EU RED:Biofuels Sustainability Criteria

66

biodiversity value from January 2008 (primary forest, biodiverse grassland, nature protected areas)

Minimum 35% greenhouse gas emission saving compared to fossil fuel (50% in 2017 / new production 60% in 2018)

(EU raw materials must meet EU rules on agro-environmental practices)

EU RED:Biofuels Sustainability Scheme

Have to be met in order to:

To receive incentives (from individual EU Member States) and count toward the targets (10% and the 20%)

77

targets (10% and the 20%)

But does not stop trade in other (‘unsustainable’) biofuels

Single scheme across the EU

Non-discriminatory, applies to both EU production and imports, all feedstocks

EU RED: How to prove compliance?

Basis for evidence of compliance:the type of raw material (+ possibly the production process)the land where it came from

Adequate standard of independent auditing needed

88

neededaccording to EU Member States rules or alternatively the Commission can accredit ‘voluntary schemes’ (or international agreements)

June 2010 European Commission published further Guidelines on:

practical implementation of the criteriavoluntary schemesfuture updating of ‘default values’

EU RED: GHG Savings Figure

Can be obtained by:Calculation of ‘actual value’ according to the methodology; or

Using ‘default value’; or

99

Using ‘default value’; or

A combination of both

‘Default values’ Predetermined values in Annex V of the Directive

Set at conservative level

To reduce administrative burden

For different typical types of biofuels

Annex V, part A, of the Renewable Energy DirectiveTypical and default greenhouse gas emission

savings for biofuels

if produced with no net carbon emissions from land-

use change

1010

Directive available at http://ec.europa.eu/energy/renewables/index_en.htm

Economic operators can show compliance through:

– Actual values / Default values / Bilateral Agreement or

Voluntary Schemes

Voluntary schemes can apply for recognition at the EU

EU RED:Voluntary Certification Schemes

1111

Voluntary schemes can apply for recognition at the EU

level

– Applicable across the 27 EU MS, for 5 years

Guidelines on voluntary schemes (June 2010)

Two-step process:

1. Analysis by responsible service in the European Commission,

and dialogue the scheme

2. Consultation within the Commission and with Member States

June 2011: First seven voluntary schemes recognised

All types of biofuels:– ISCC (International Sustainability and Carbon Certification)

– RSB EU RED (Roundtable on Sustainable Biofuels)

– 2BSvs (Biomass Biofuels Sustainability voluntary scheme)

EU RED: Recognised Voluntary Certification Schemes

1212

– 2BSvs (Biomass Biofuels Sustainability voluntary scheme)

Feedstock- and area-specific:– Bonsucro EU (sugarcane-based ethanol, esp. Brazil)

– RTRS EU RED - Roundtable for Responsible Soy (soy-based diesel,

esp. Argentina and Brazil)

– RBSA – Abengoa RED Bioenergy Sustainability Assurance (ethanol,

globally)

– Greenergy Brazilian Bioethanol verification programme (sugarcane-

based ethanol in Brazil)

RSPO applied for recognition and is at an

advanced stage of the first step

Would be the first voluntary certification scheme

EU RED:Recognition of RSPO RED?

1313

Would be the first voluntary certification scheme

specifically for palm oil

December 2010: Report on Indirect Land Use Change (ILUC)

– ILUC can have an impact on the GHG savings of biofuels

– Deficiencies and uncertainties of the modelling

EU RED: Other recent developments

1414

– Deficiencies and uncertainties of the modelling

– Further work / Legislative proposal?

January 2011: Reporting Guidelines

– Additional information to be reported in addition to

meeting sustainability criteria

– Mainly focusing on whether a certificate of a recognised

voluntary scheme is used / bonus

EU RED:Expected implications for Palm Oil

No change for crude palm oil imports

No change for palm oil for non-fuel

Incentives for sustainably produced biofuels

1515

Incentives for sustainably produced biofuels

No trade ban, other biofuels can still be

imported

Palm biodiesel can be eligible for incentives - if

produced under the right conditions

FOOD LABELLING: EU Regulation on the provision of

food information to consumers

To facilitate the choice of consumers to make balanced and healthier dietary choices

To enter into force at the end of November, most rules applicable three years after that

1616

most rules applicable three years after that

Some of the main changes:– Mandatory nutrition declaration– Allergens to be highlighted in the ingredient list.– Origin of foods specified (for fresh meat from

pigs, sheep, goat and poultry)

FOOD LABELLING: Regulation and Palm Oil

Vegetable oils:

consumers will in future be informed about the sources of vegetable oils

1717

the sources of vegetable oils

Oils of vegetable origin:– may be grouped together in the list of ingredients under

designation “vegetable oils”

– followed by the indication of the specific vegetable origin

– on the basis of total weigth of the oils present

ALL vegetable oils

CONCLUSION:Where does it all lead?

Legislation and consumer concerns in the EU (and elsewhere) contribute to the promotion and uptake of certified sustainable palm oil

Palm Oil

1818

Palm Oil

– Can be creator of sustainable growth and employment

– Competitive fuel source for the world economy

– Potent contributor to a better climate

As long as it is produced sustainably...

Thank you!Thank you!

1919

nina.cinkole@enina.cinkole@eeaseas.europa.eu .europa.eu http://eeas.europa.eu/delegations/malaysia/index_en.htmhttp://eeas.europa.eu/delegations/malaysia/index_en.htm

http://ec.europa.eu/energy/renewables/biofuels/biofuels_en.htmhttp://ec.europa.eu/energy/renewables/biofuels/biofuels_en.htm