How sustainable Bioenergy production can contribute to the Development of Colombia

Dr Rocio A Diaz Chavez

Stockholm Environment Institute Africa Centre

Deputy Director for Research

Energy and climate change programme leader

rocio.diaz-chavez@sei.org

Background

• Colombia is the second most biodiverse country in the world as well as the second biggest biofuel producer in Latin-American after Brazil.

• Colombia is now the world's fifth producer of palm oil and the leading producer in Latin America.

• Biomass residues and non-food local feedstocks are of high availability within Colombia from plantations and processing industries.

• Colombia produced 173,043 tonnes of biodiesel in 2009

• Solid biomass residues produced from palm oil processing industry and residues present a potential for domestic energy generation and export.

FAO project report GISPOVTorrefied Bamboo for the Import of Sustainable Biomass from Colombia

FRAMEWORK

Whose

sustainability?

(Dalal-Clayton, & Daler, 2005)

Essentials on the concept of sustainability

• A challenge to conventional thinking and practice

• concerning long as well as short-term well-being

• comprehensive (all issues in decision-making)

• recognition of links and interdependences

• an open-ended process

• links between means and ends

• global and context dependent

Methodologies and toolsExamples of assessment

Environmental Engineering Social and

economic

Business Integrated

Environmental Impact

Assessment

Life-Cycle

Assessment

Social Impact

Assessment

Environmental

Management

Systems

Sustainability

Assessment

Carbon footprinting Risk assessment Health Impact

Assessment

Corporate Social

Responsibility

Integrated

Impact

Assessment

Ecological footprinting Material flow

assessment

Cost-benefit

analysis

Impact

Assessment

Land use modelling Economic

modelling

Strategic

Impact

Assessment

Indicators(Diaz-Chavez, 2015)

Tradeoffs and synergies of Bioenergy and social issues.

Local

community

Vulnerable

groups

Socio-economic

issues

Livelihoods

Land ownership

Skills

Business models

Infrastructure

Income

Health and risk

Gender

Stakeholders

Land use

Bioenergy crops

Food production

Resources management

(water, air, soil, biodiversity)

GHG

Other environmental issues

Ecosystem services

(regional and local)

Governance Regulations

Voluntary standards

(Diaz-Chavez et al, 2014)

Review of current standards

Analysis of case studies

Socio-economic principles

Environmental principles

Socio-economic impacts

Pre-selection of principles, criteria and indicators

Workshop with partners to select indicators

Field test

APPLICATION

•Global-Bio-Pact

•Costa Rica

•Brazil

•Argentina

•Mali

•Tanzania

•Indonesia

Sustainability considerations (Good practices) (COMPETE project)Principle En S Ec P

1. Good agro-ecological and forestry practices(biodiversity, soil)

2. Not affecting water supply and quality

3. No land use change that detrimentallyaffects food security

4. Community participation (from planning)

5. Women’s participation (from planning)

6. Skills transfer (management, business,agriculture)

7. Community inclusion in business oreconomic model (Contract with investor orNGO)

8. Added value in the community (individual,money, assets, land, co-products)

9. Improvement in services and infrastructure(energy supply, health) reinvestment ofrevenue within the community

10. Compliance with National and/or guidelinesfor bioenergy policy in place

11. Compliance with Local programmes,regulations and/or plans in place

12. Respect Land rights and avoid displacement

Key variables and sustainability indicatorsProduction and availability of

feedstock

Biomass surplus

Willingness to shift cropping

patterns

Role of panchayat in

deciding cropping patterns

Employment

Limitation to employment opportunity

Openness in exploring and

taking non-agricultural

activities

Working conditions in

the competing industry

Willingness to work in bio-

refinery

Strength of labour union

Child labour issues; etc

Health, environment and

food security

Health impacts due to working conditions in competing industries

Impacts on food security due to presence of a bio-refinery

Environmental, water related, land related

stress in the area related to industrial

activities; etc.

Rural development

Improvement in physical

infrastructure due to

industrialization

Would bio-refinery improve

infrastructure

Research and development

Extent to which investments in

R&D activities in clean/bioenergy

is needed

Extent to which R&D activities

have happened in clean/bioenergy

Other issues related to political,

legal and economic barriers

Current barriers in terms of

political and administrative

hurdles in setting up of a

new bio-refinery

Creation of new economic

opportunities for the locals

SDGs 2016

Example from Biotrade2020+

• To assess the technical and sustainable potentials according to the Biotrade2020+ methodology of Feedstocks (sugar cane and palm oil in Colombia) residues for biomass trade from production origin in Colombia to the port of Rotterdam in the EU.

Areas selected: 2) the northern palm oil region and 3) the central palm oil region

Technical potential of lignocellulosic biomass• General data

• Legislation related to bioenergy

• Data on main feedstocks used or with potential for biomass trade

• Production volumes

• Planted areas

• Harvested areas

• Irrigated areas

• Yield – National average

• Data on main biomass currently exported

• Production volume

• Quantity exported

• Price

Cont.• Biodiversity

• Legal/policy/governance related data

• Geographic/land use data

• Biological/physical data

• Land use

• Land area under specific classes

• Area of land under each specified class

• Definition used in each country for that type of land class

• Socio-economic

• working conditions

• land tenure/rights

• Food insecurity issues

• ILO conventions

• Standards and Certification

Table below shows the total production area and mill residue production for export in the Northern and central palm oil zone of Colombia under a Business As Usual and a High Export scenario for 2020 and 2030.

The table summarises the GHG emissions for palm oil residue and sugar cane trash delivered to Rotterdam

Assumptions GISPOV (FAO) of palm oil production in Colombia • a) Business-As-Usual scenario: production of Crude Palm Oil (CPO)

from 1.2 million tones in 2015 to an estimated production of 1.6 million tones in 2025 (projected based on past trends – FAO 2016), as well as a national average yield of 3.2 t/ha as of 2015

• b) GISPOV: potential social and economic co-benefits assuming an estimated production of 1.6 million tones of CPO and a national average yield of 4.2 t/ha CPO in 2025 (projected based on past trends – FAOSTAT 2016).

Indicators for palm oil production and scenarios

Table 1.Socio-economic issues:

SOCIAL ECONOMIC

Access to modern bioenergy services Total employment

Gender-sensitive benefits and other vulnerable groups

Personal income

Land property and access Diversification of livelihoods in the affected areas

Access to resources Increase in economic activity

Livelihood and food security Energy diversity

Governance

Selected indicators

1 Source: Average between low (2.3 t/ha) and high (3.2 t/ha) yields as reported by FAO country questionnaire (2016).2 FAO assumptions for the BAU and GISPOV scenario.3 Calculated FFB yield assuming a 21.6% extraction rate (FAO assumptions).4 Source: FAOSTAT (2016). Price refers to 2014. 5Following World Bank’s (2016b) forecasts for CPO world price which estimate an annual increase of about 3.3% between 2016 and 2025.

Colombia: Smallholders’ income per ha (in USD) from increased yield

Year

2014 2025 (BAU) 2025 (GISPOV)

Yield CPO (t)/ ha (national average)

2.71 2.72 4.22

Yield FFB (t)/ ha (national average)

12.53 12.53 19.43

Price CPO/ t (annual average) 9094 ~1,2365 ~1,2365

Total CPO gross revenue/ ha 2,454.3 3,337.2 5,191

Change between 2014 and 2025 36% 111%

a rough idea depending on:• current conditions • policy tools • quantity and quality of

inputs for sustainable intensification of production

• the evolution of local crude palm oil and FFB producer prices driven by local and world demand governmental policies

• Climate change impacts• pest diseases • etc

Year

2015 2025 (BAU) 2025 (GISPOV)

% of CPO production with methane capture systems

6.5%1 13%1 19%1

Total national CPO production (t)

1,200,0001 1,600,0001 1,600,0001

Total biogas potential (m3) for all mills in the country

64,960,0002 87,360,0002 87,360,0002

Total biogas (m3) actually produced for all mills in the country

4,222,400 11,356,800 16,598,400

Energy (heat in MJ) produced per m3 of biogas

7.73 7.73 7.73

Total energy (TJ) produced from biogas

32.5 88 127.1

Jobs created per TJ of energy 34 34 34

Total jobs created by methane capture systems in the country

~98 ~264 ~381

Colombia: Employment with methane capture systems

In developing countries the quantity and quality of employment depends on the stage of the bioenergy system, the conversion process, the specific country setting and whether it is labour intensive or mechanized (Franke et al. 2013). It should be noted also that the demand for the above skilled jobs may not be able to be fully met by local supply due to lack of necessary qualifications.

1 FAO data and assumptions under the BAU and GISPOV scenario.2 See previous Table.3 Source: Mel et al. (2010).4Source: Franke et al. (2013).

Profiling

Scoping

Assessment

Projection

Mitigation

Evaluation

Monitoring

Identification of stakeholdersand affected groups

Baseline analysis using indicators

AlternativesComparison of options

Examination of web and chains of impacts

Magnitude of impacts

Participation techniques

Measures to mitigate (e.g. policies and regulations)

Indicator measurements and review

ACTIVITYDESCRIPTION

sLCA

Social life cycle impact assessment

sLCA limitations

Boundaries

Methodology of co-product handling

Definition of reference products

Foreground and background processes

Determine stakeholder categories

(Diaz-Chavez, 2012)

LCA

Hotspots database results

Social

Food vs. Fuel

Rural development

Mini-fund and other types of property

Type of propertyy

Skills transfer

Access to information by producers

Breadth of topics

Environmental

Management Practices

Conservation of biodiversity

Reference point for conservation in land planning

Water supply

In some cases legal issues for water protection

Selection of species

Adaptation togeographicaldiversity

Depends on the region in Colombia

Opportunity for added value

Source of alternative

income

Alternative use of residues

Viability

Competitiveness

Unknown costs

Economic

Incentives to develop

market

Access to market

Transport Infrastructure available

Land use change

Land use planning

Policy - Institutional

RegulationsInstitutions

Ministry of Energy

Ministry of Agriculture

Ministry of Environment

Nature of labour

Zonas francas

Local governments

FEDEPALMA/CENIPALMA

Environmental, forestry, agriculture and energy

Voluntary schemes

Palm oilstandards

Related to voluntary schemes

Chemical characteristics

and GHG

Land use forests with management

Incentives for energy use

Sustainability screening and integration

Strategic view

Policy

agendas

energyRural development & agriculturetransport

Sustainable development

Environment WAT

ER

industry

Policy agendas

energy Rural development & agriculture transport

Sustainable development

Environment, economic, social, policy

industry

biorefineries

Climate change

National/regionalSDGs

BIOECONOMY

Challenges and Recommendations

• Assessment, uncertainty & subjectivity

• Mitigation

• Monitoring

• Stakeholders identified for impacts.

• Sustainable development main issues are related to public participation and engagement

• Consider other environmental and social management tools such as SEA

Thank you

Dr Rocio A Diaz Chavez

Stockholm Environment Institute Africa Centre

Deputy Director for Research

Energy and climate change programme leader

rocio.diaz-chavez@sei.org