schmitz red ii implications and latest challenges in waste and … · 2019. 7. 4. · dr norbert...

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RED II Implications and Latest Challenges in Waste and Residues based Supply Chains

Dr Norbert Schmitz, ISCC System GmbHTechnical Committee “Waste, Residues and Advances Low Carbon Fuels”, Shanghai, 02 July 2019


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RED II Implications

Latest Developments ISCC

W/R Based Supply Chains


The RED II, approved on 24 December 2018, sets ambitious targets for renewable energy for the EU for the next decade§ RED II defines the legal framework for biofuels and bioliquids in the EU from 2021 to 2030

§ Transposition of the Directive by the EU Member States is due by 30 June 2021

§ Targets: Energy from renewable sources 32 % (at EU level), renewables in the transport sector 14%

§ The framework of the RED II sets further incentives for biofuels and bioliquids produced from waste and residues (e.g. cap on crop-based biofuels, phasing out of high iLUC risk palm)

§ Targets for advanced biofuels produced out of feedstock of Annex IX, Part A (0.2 % (2022), 1 % (2025), 3.5 % (2030)

§ Limit of 1.7% of biofuels produced out of feedstock of Annex IX, Part B (animal fat, UCO). Limit can be modified by Member State if approved by Commission

§ New fossil fuel comparator (94 instead of 83.8 gCO2eq/MJ) and new GHG emission saving tresholds:§ 50% for old installations§ 60% for new installations after 5 October 2015§ 65% for installations starting operation after 1 January 2021§ 70% for renewable fuels from non-biolog. origin after 1 January 2021


New fuel categories have been introduced by the RED II

Advanced biofuels

High iLUC risk biofuels

Low iLUC risk biofuels

Renewable fuels of non-biological origin

Recycled carbon fuels

§ Annex IX of RED II (Part A)

§ Produced from feedstocks with significant production expansion into areas with high carbon stock

§ Fuels produced from e.g. plastics, waste processing gases, industrial exhaust gases

§ E.g. Power-to-X such as hydrogen made from renewable electricity

§ Produced with schemes avoiding displacement effects of food/feed crops (e.g. double cropping, use of degraded land, yield increase)


Annex IX Part A defines feedstocks for advanced fuels. The list can be updated by the European Commission. Limit for Part B fuels introduced

Annex IXPart A (“Advanced”) targets: at least 0.2% in 2022, 1% in 2025 and 3.5% in 2030

• Algae if cultivated on land in ponds or photobioreactors• Biomass fraction of mixed municipal waste but not separated

household waste subject to recycling targets• Bio-waste as defined in Article 3(4) of Directive 2008/98/EC from

private households subject to separate collection • Biomass fraction of industrial waste not fit for use in the food/feed

chain, including material from retail/ wholesale and the agro-food and fish and aquaculture industry, excluding feedstocks listed in part B

• Straw• Animal manure and sewage sludge • Palm oil mill effluent and empty palm fruit bunches • Tall oil pitch

• Crude glycerine• Bagasse• Grape marcs and wine lees• Nut shells• Husks• Cobs cleaned of kernels of corn• Biomass fraction of wastes and residues from forestry and forest-

based industries, i.e. bark, branches, pre-commercial thinnings, leaves, needles, tree tops, saw dust, cutter shavings, black liquor, brown liquor, fibre sludge, lignin and tall oil

• Other non-food cellulosic material• Other ligno-cellulosic material (…) except saw logs and veneer logs

Part B (Not considered as “advanced”) capped to 1.7% but exemption possible

• Used Cooking Oil (UCO) • Animal fats classified as categories 1 and 2 in accordance with Regulation (EC) No 1069/2009

Source: RED II (Directive 2018/2001)


Companies producing biofuels out of Palm Oil Mill Effluent (POME)

ISCC certifies already several companies using Annex IX A feedstock for the production of low carbon fuels

Raizen produces bioethanol from bagasse

UPM is producing renewable diesel and bionaphta from tall oil pitch and crude tall oil

Enerkem is producing methanol and ethanol from municipal solid waste

BioMCN is converting waste-based biogas into biomethanol

7© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.© ISCC System GmbH: For personal use only. Reproduction and distribution is prohibited.

Next steps in the RED II process

§ Several Delegated Acts by the European Commission still necessary:

- ILUC (published on 13 March 2019)- Renewable fuels of non-biological origin and recycled carbon fuels (due

in January 2021)- Co-processing (due in December 2021)

§ European Commission shall ensure that a Union database is put in place to enable the tracing of liquid and gaseous transport fuels:• No timeframe defined• RED II refers only to the final fuel (not covering the upstream

value chain

§ ISCC will implement the necessary changes in its ISCC EU scheme to become recognized under the RED II (re-recognition of ISCC in 2021 necessary)


ISCC proves compliance with legal requirements for biofuels/bioliquids in the EU and other important energy markets

Energy

Transport

RED

Compliance with legal requirements and initiatives

Bioliquids

Heat & PowerRED

Biogas / Biomethane

BiofuelsRoad

ISCC EU to show compliance with RED/FQD in all EU Member States

RED

Solid biomass

Recycled carbon fuels

Aviation

Maritime

Renewablefuels of non-biological origin

ISCC EU to show compliance with RED/FQD in all EU Member States

Recognition for AIREG – Aviation for renew. energy in Germany

ICAO – Participation in CORSIA for sustainable alternative jet fuels

ISCC PLUS for Japanese biofuel sustainability requirements

ISCC EU or PLUS for compliance with Liquid Fuel Supply Regulation in Queensland

Current Other


Leading companies use ISCC for industrial applications (e.g. plastics or chemicals) of bio-based and circular materials

Industrial applications

Bio-based

Circular

Compliance with platforms & industry standards

Selected ISCC certified companies

Examples


695

1281

2459

30102817 2957

32593509 3700

0

500

1000

1500

2000

2500

3000

3500

4000

2011

2012

2013

2014

2015

2016

2017

2018

2019

(esti

mate)

Development of number of valid ISCC certificates and valid certificates by region

Number of valid ISCC certificates

EU (64 %)

Rest of Europe (5 %)

Asia (21 %)

Latin America (5 …North America (3 %)

Africa (1 %)

Australia (0,4 %)

Valid certificates by region

Numbers as per June 2019


The share of ISCC certificates covering waste/residues is further increasing

Certificates feed/food crops

Certificates with w/r

Numbers as per 07 June 2019

70 % UCO


The number of valid ISCC certificates for China is increasing constantly. UCO is by far the most important material

Numbers as of 28 June 2019Each certificate can cover more than one material

Type of operation CertificatesCollecting Point 77

Refinery 1

Biodiesel Plant 29

Trader, Storage 122

Materials covered by certification

Share of certificates*

UCO 100%

W/R processing of animal/vegetable oil 2%

Brown grease/trap fat 3%

Valid ISCC EU certificates

12 1540

87

144169

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20

40

60

80

100

120

140

160

180

June 14 June 15 June 16 June 17 June 18 June 19

ISCC global figures reported to the EC for 2018 ISCC certified UCO (feedstock): 2.522 ktISCC certified UCO based biofuels: 2.337 kt


Fraud investigation in The Netherlands, UK and Belgium

§ Joint investigation by authorities in UK, NL and BE

§ ISCC system user Biodiesel Kampen BV allegedly committed fraud and sold non-sustainable biodiesel as sustainable and double-counting biodiesel to the market

§ ISCC certificate was withdrawn by the CB on 08 May 2019 immediately after information about the allegations was received

§ The CB conducted a surveillance audit at the company revealing non-conformities with ISCC requirements

§ As the investigation by the authorities against companies in biodiesel supply chains is still ongoing, no official information is available

§ The authorities aiming at reducing GHG emissions in the transport sector, customers, the certification body and also ISCC have been defrauded

§ As aggrieved party, ISCC has pressed for criminal charges against Biodiesel Kampen

Source: Reuters

Source: deVolkskrantSource: Energy Census


ISCC regards the case as very serious and takes the opportunity to furtherstrengthen the certification process in dialogue with its stakeholders§ ISCC had already implemented several measures in particular for waste and processing residue (w/r) based supply chains to

safeguard the integrity of the scheme

§ In mid 2018, ISCC set up a specific technical working group for waste and processing residue supply chains. The ISCC working group already proposed some additional measures prior to the ongoing investigation

§ Discussion of suggested measures with multiple stakeholders, including associations (EWABA and MVO), Stakeholder Committee Europe (meeting on 21 May) and Certification Bodies (CB meeting on 22 May)

§ ISCC working group agreed on measures that should be implemented by the system (see presentation by the WG)

§ Tighten audit requirements and double-checks of transactions and deliveries of sustainable supplies during audits. Introduce analysis / inspections of consignments as part of verification procedure

§ “Whistleblower“ section on ISCC website for easy submission of information to ISCC

§ ISCC Integrity Program with increased focus on and more assessments of waste and residue supply chains

§ Comprehensive ISCC training program for system users and auditors; additional mandatory trainings for w/r auditors

§ Adopt “Terms of Use” to give further rights to auditors and ISCC, and to tighten sanction mechanisms

§ Database solution, to support the transmission of correct sustainability information within the supply chains and to easedouble-checks of transactions for double counting renewable fuels (ISCC developed aleady TYC some years ago)


The ISCC Impact Assessment Report 2018 has been published in June 2019

§ Critical review of what has been achieved, and what isthe impact on the ground

§ Definition of the ISCC Theory of Change

§ Gathering of data about impact is challenging

§ Assessment includes sample data taken from audit reports and a survey with certification bodies

§ Improvements in the ISCC system will provide more digitally accessible data about impact

§ Continuous improvement process with involvement of stakeholders

§ ISCC will report about impact on a regular basis in the future


ISCC is an open multi-stakeholder association with 119 members. Become a member of the ISCC family!

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Many thanks for your attention!

Dr Norbert Schmitz, ISCC System GmbHHohenzollernring 72, 50672 Cologne, Germany

Email: [email protected]

schmitz red ii implications and latest challenges in waste and … · 2019. 7. 4. · dr norbert...

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