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UK Gallagher Review Calls for Significant Slowdown in Introduction of Biofuels
7 July 2008
The just-released Gallagher Review of the indirect effects of biofuels production, requested by the UK government from the Renewable Fuels Agency (RFA) earlier this year, concludes that while there is a future for a sustainable biofuels industry, feedstock production must avoid agricultural land that would otherwise be used for food production.
According to the Review, the displacement of existing agricultural production, due to biofuel demand, is accelerating land-use change and, if left unchecked, will reduce biodiversity and may even cause greenhouse gas emissions rather than savings. As a result, the Review Calls for a significant slowdown in the introduction of biofuels “until adequate controls to address displacement effects are implemented and are demonstrated to be effective.”
A slowdown will also reduce the impact of biofuels on food commodity prices, notably oil seeds, which have a detrimental effect upon the poorest people, the Review stated. The report rejects an outright moratorium on biofuels, however.
The RFA has concluded, on balance, that a moratorium will reduce the ability of the biofuels industry to invest in new technologies or transform the sourcing of its feedstock to the more sustainable supplies necessary to create a truly sustainable industry. It will make it significantly more difficult for the potential of biofuels to be realised.
However, to manage the risks inherent in the current policy a much more cautious growth in the biofuels market is required than currently envisaged by the UK RTFO and EU Renewable Energy and Fuel Quality Directives. This is to ensure that the amount of biofuel entering the market is limited until appropriate controls are in place to guarantee the GHG-benefits of biofuels and adequately address wider sustainability concerns. The future growth of biofuel supply should then be dependent upon the industry delivering sustainability performance milestones, including those that take account of indirect land-use change.
While there are a range of direct and indirect effects of biofuel production, the Gallagher Review focused specifically on:
Rising food commodity prices and the effect upon food security for the poor; and
The displacement of agricultural production onto uncultivated areas with impacts on biodiversity, GHG savings and local land rights as a result of biofuel production.
Among the conclusions and recommendations from the report are:
The UK should amend but not abandon its biofuel policy in recognition of the indirect effects to ensure its biofuels policy delivers net GHG benefits. Specifically, biofuels support mechanisms should exclude feedstock grown on land where carbon losses arising from its cultivation lead to a payback of longer than 10 years by the biofuel produced. Biofuels support mechanisms should also specifically exclude feedstock grown on land designated as of high conservation value. Further work needs to be done on the indirect effects of EU policy; carbon losses associated with land change, especially for pastures; the net benefits of growing biofuel feedstock on idle land; and the nitrogen cycle.
Biofuels policies need to require the utilization of feedstock that does not cause a net additional pressure on current agricultural land. This includes use of appropriately defined idle agricultural land, marginal lands, wastes and residues and intensification of current production.
Advanced technologies have significant potential, but may only produce biofuels with higher GHG savings if feedstock production avoids use of existing agricultural land that leads to indirect land-use change. This can be achieved using feedstock grown on marginal land or that does not use land, such as wastes and residues (although this may compete with other uses of these materials).
The Review calls for a specific obligation on transport fuel suppliers to supply biofuels achieving a high level of GHG saving (possibly greater than 75%) from appropriate wastes and residues; feedstock grown on marginal land; and other technologies and feedstocks that avoid indirect land change (such as algae).
Current evidence, according to the Review, suggests that an achievable target range for advanced biofuels in road transport in 2020 is on the order of 1-2% by energy.
Current lifecycle analyses of GHG-effects fail to take account of indirect land use change and avoided land use from co-products. As a result, GHG-based targets may result in a greater land requirement, and land-use change, than a volume or energy-based target. Second-generation biofuels using feedstock grown on existing agricultural land may cause greater net land-use change than first generation biofuels that also produce co-products that avoid land use.
Basing incentives and targets for biofuels on their GHG savings remains the optimum policy approach, according to the Review, but should only proceed once the implications of indirect effects and avoided land use from co-products have been fully explored and adequately incorporated into calculation methodologies.
Lower targets for biofuels and shifting production to idle and marginal land will reduce pressure for land-use change. Stronger policies are needed to slow rates of deforestation particularly in South America, Africa and parts of South-East Asia.
Increasing demand for biofuels contributes to rising prices for some commodities, notably for oil seeds. In the longer term this has a net small but detrimental effect on the poor that may be significant in specific locations. Shorter-term effects are likely to be significantly greater. Lower biofuel targets and directing production onto idle land reduces these negative impacts. There is some potential for the poor to benefit from biofuel production in some areas where the land is available and where the necessary infrastructural investment is forthcoming. This might be accelerated by policy directing sustainable production on to suitable idle and marginal land.
Mechanisms do not yet exist to accurately measure, or to avoid, the effects of indirect land-use change from biofuels. Consequently, the net GHG emissions from current biofuel targets cannot be assessed with certainty, and there is a risk that any biofuel target could lead to a net increase in GHG emissions. The assessments underpinning the EU 2020 10% target and RTFO did not adequately address indirect land use change. A framework to prevent biofuels causing land-use change has been proposed but is challenging and will take time to develop. The practical details, implementation and enforcement regime, need to be defined and will determine the overall effectiveness of the approach. In the meantime the rate of introduction of biofuels should be slowed.
In terms of specific targets, the Review recommended the following:
The European Commission should not allow Member States to supply more than 5.75% (by energy) of biofuels; and allow more cautious Member States to supply biofuels to 4% (by energy);
Progress to higher targets for current technologies should only be implemented beyond 2014 if biofuels are demonstrably sustainable, including avoiding indirect land-use change;
A second obligation to produce feedstock from appropriate wastes, residues and production on marginal land should commence in 2015. A target of 1-2% by 2020 is proposed but should be subject to further detailed consideration along with the buy-out price;
A lower EU 2020 target is proposed in recognition of the risk of indirect land use change and absence of adequate control measures. A target range of 5-8% (including 1-2% from advanced technologies) is suggested with the higher target triggered only if milestones in 2013/14 are met. Higher targets, up to 10% (by energy) might be possible if sufficient controls are enforced globally on land-use change and new evidence provides further confidence that the effects upon food prices are manageable. An accelerated rate of biofuel introduction should not be introduced before around 2016; and
Biofuel targets should not be mandates but obligations with an appropriate “buy-out” price set.
The UK’s Renewable transport Fuel Obligation (RTFO) came into effect on 15 April 2008. It requires road transport fuel suppliers to ensure that 2.5% (by volume) of their total fuel sales is made up of biofuels. The level of the obligation is due to rise to 3.75% in April 2009 and 5% in April 2010.
The EU’s 2003 Biofuels Directive requires Member States to set biofuel targets for 2010, and suggests that these targets should be in the region of 5.75% (by energy content), equivalent to around 7.5% by volume.
The European Commission’s draft Renewable Energy Directive includes a proposed mandatory 10% (by energy content) by 2020 renewable transport fuel target, equivalent to around 13% by volume. This is under negotiation in Brussels as part of a wider 2020 renewable energy package, with agreement due to be reached by the end of 2008. It follows the agreement by EU Heads of Government in March 2007 that 10% of transport fuels should come from renewable sources by 2020, provided that a number of conditions were met (including around the sustainability of biofuels).
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July 7, 2008 in Biodiesel, Biomass, Biomass-to-Liquids (BTL), Cellulosic ethanol, Ethanol, Europe, Policy | Permalink | Comments (23) | TrackBack (0)
Comments
Posted by: martinb | July 07, 2008 at 12:18 PM
Good thing is that 2nd generation biofuels like biomethane from anaerobic digesters (AD) are encouraged. With OEMs like VW and MB making great CNG vehicles now (Passat, B Class, Sprinter all launched in 2008) there is nothing to stop this market now.
Cars will go the furthest on crops grown on an acre of land if the crops are used to produce renewable methane in an AD. At todays energy prices, this makes financial sense as well as being best for CO2. Truly sustainable transport.
Posted by: John Baldwin | July 07, 2008 at 12:48 PM
As most of these reports: full of questionable ideological perspectives, some very bad science (on land use efficiency) and the result of a 'minimalist' approach towards sustainability.
For example the idea that small farmers should be protected, or that a particular piece of land should not be converted for energy crops, is highly debatable. Historically speaking, the tendency for small farmers who use extensive techniques to give up farming and to migrate to cities, has led to much higher efficiency as better and larger farmers take over with intensive techniques.
It is actually good that small farmers in Brazil get pushed out of the market, so that they can get better paid jobs in cities, and so that a bigger farmer with much more capital can invest in much more efficient production. This is good from a social, environmental and efficiency point of view.
This is just one example of how a maximalist and historically grounded view on sustainability is needed. Else, we keep getting these pretty nonsensical reports.
But these counter-intuitive ideas are really unacceptable in today's politically correct green discourse.
Posted by: Jonas | July 07, 2008 at 12:52 PM
@MartinB, where do you get these strange ideas?
By 2050 the world can still produce biofuels worth 7 times (1500Ej) as much oil as currently consumed (220Ej worth), while feeding all people (9 billion by that time), without cutting a single tree, and without taking into account advancements in biotechnology.
These are readily available projections made by the world's leading scientists in the field (and now also the basis of the FAO's bioenergy and food projections).
So you are confusing actual market conditions and traditions, with the actual potential.
The potential is enormous. The organisation needed to tap it is disastrous (subsidies, bad science, trade barriers, lack of inputs for poor farmers, horrible policies, etc...).
So let's not go that catastrophic Malthusian route please. It is the hallmark of ignorance.
Posted by: Jonas | July 07, 2008 at 12:58 PM
"So let's not go that catastrophic Malthusian route please. It is the hallmark of ignorance."
Jonas, if you are going to bandy about accusations of ignorance, you should at least provide sources for your statements (ie 7 times as much biofuels in 2050 as oil currently), ie exactly who said that, when, and where. You should also take into account the fact that cultivable arable land will probably be reduced in 2050 from the present amount because of global warming effects (desertification, retreat of glaciers, esp. Himalayas, etc). hard to believe the world will produce 7 times as much biofuel as oil currently consumed within any kind of plausible economic scenario (ie not allowed to assume oil is >$1000).
Posted by: eric | July 07, 2008 at 03:17 PM
Jonas is right. Stanford just released a study that posited that there are between 1.0 and 1.2 Billion fertile, Abandoned acres in the world. With modern, developing biotechnology, and farming methods - not to mention forestry methods - it's a slam-dunk.
Posted by: kum dollison | July 07, 2008 at 05:04 PM
Let’s leave the unfarmed lands alone for the little bird, animals and insects. They deserve their place in this world.
Posted by: Head Case | July 07, 2008 at 05:08 PM
I admit it is discouraging to find out Bio-fuel as presently deployed is rather unattractive in an environmental sense.
It just makes no sense to have increased food price, and no net benefit to environment at the same time.
Premature government subsidies exasperated the problem in the United States. This should become a lesson learned, cautioning against industry lobbying, and rosy projections. Now, hydrogen technology could become a similar disaster area if it is allowed to run its present course.
Posted by: Lulu | July 07, 2008 at 05:09 PM
What we see here is that the EU is realizing that biofuels can supply only a small part of our energy needs without new and undiscovered methods (political or technological).
Our search for energy independence and sustainability must therefore be focused in other areas. Unfortunately, the EU has not yet noticed that they are required as leaders to look for and identify those areas.
Might I suggest they have a look at wind and solar to pitch in the renewable requirement that we don't see coming from biofuel.
Posted by: John Taylor | July 07, 2008 at 06:39 PM
Hell yeah, push the small farmer off his farm just when he can start making money in energy crops and organic produce. And get him a "good job" in the concrete jungle.
We're talking the milk of green compassion here.
Posted by: Sulleny | July 07, 2008 at 10:22 PM
NEWSFLASH! Computer simulation project bankrupt, financially and of ideas. Computer models shown to be "Not ready for Prime Time."
Posted by: fakebreaker | July 07, 2008 at 10:27 PM
European countries failed miserably in biofuels, hence 180 degree turn from “biofuels the saviors” to biofuels crime against humanity”.
Soon Europe will fail wind and solar. Expect wind and solar declared “crime against humanity” too.
Posted by: Andrey Levin | July 07, 2008 at 10:43 PM
Let's blame it all on the World Bank:
http://www.thetruthseeker.co.uk/article.asp?ID=79
Posted by: trumanshow | July 08, 2008 at 05:39 AM
Hang on, my switchgrass poplar stew is still on the boil... I have a bowl every morning before heading off to the landfill!
Posted by: vizionless | July 08, 2008 at 05:43 AM
Only a short three days ago this malarkey was called: The World Bank Report:
http://www.greencarcongress.com/2008/07/world-bank-repo.html
Today, somehow we've entirely lost the meddling World Bank as the culprit. Is this journalism or pathetic old propaganda?
Posted by: conradblack | July 08, 2008 at 05:59 AM
I call it "sanity prevails". Its good to know someone in the UK somewhere has common sense. I wish, here in the US, that some common sense could be found regarding our current gasohol enacting efforts.
The solution, BEV, at any cost! (which is much cheaper than the damage of the current gasohol effects, and, our addiction to oil) Wind, new generation nuclear, cleaner coal, natural gas, are all here, lets utilize them......
Posted by: Mark A | July 08, 2008 at 06:20 AM
Mark A:
PHEVs and BEVs are certainly part of the longer timeframe solution.
What do we do to feed the existing 700 to 800 million gas guzzlers (+ many more new one coming out every year) for the next 10 to 30 years?
Fossil liquid fuel is running out or getting rare and will be more and more costly.
Agro-fuels cannot be produced in suffisant quantities without provoking major world food shortages and sky high food prices.
Producing fuels with various types of wastes may eventually help but the technologies are not mature yet.
The solutions will be progressive and will take time. Many approaches, such as corn ethanol, will fail and will have to be abandoned.
Meanwhile, speculators are going to make a fortune by taking advantage of people's needs and fears.
Progressive but massive electrification (transportation vehicles, HVAC etc) seems to be the best way to go.
An oil-free economy is possible. Switching from fossil to agro-fuels is not the answer in most cases.
Posted by: HarveyD | July 08, 2008 at 11:49 AM
I see what you did there.
Euro-Commies Bait-and-Switch a Green Eco-Scare tactic to loot the taxpayers into a Command-and-Control land grab to destroy self-reliance via biofuels.
BOOGA!BOOGA! You're all gonna starve to death unless we micromanage the economy! No biofuels for you evil capitalist farmers!
Posted by: Mark S | July 08, 2008 at 10:26 PM
Mark A:
Agree - BEVs at any cost!
That'll be $102k for your Tesla EV (only one avail).
Posted by: rp | July 09, 2008 at 09:39 AM
rp
Was your grandpa against the Ford gasoline self propel carriage?
The near future world does not have many choices for personnal transportation vehicles. We will soon run out of cheap fossil liquid fuel. We can't produce enough agro-fuels to satisfy 1 + billion gas guzzlers and feed 10 + billion people. Our love affair with cars + Vus etc is an addiction we can't shake off quickly.
Transportation vehicles electrification could solve both our addiction for cars and GHG reduction.
What is wrong with electric vehicles beside our resistance to change?
Posted by: HarveyD | July 10, 2008 at 06:01 PM
There is NO such thing as "Clean Coal".
Even if you clean up smokestack emissions, the carbon still comes out of the ground, that is greenhouse gas. And the coal comes from strip mines. Stripmines destroy the land forever and destroy the watersheds.
Posted by: Wetdog | July 17, 2008 at 09:58 PM
----"BOOGA!BOOGA! You're all gonna starve to death unless we micromanage the economy! No biofuels for you evil capitalist farmers!"------
Yes, isn't it strange, American farmers who feed the world are the bad guys, Saudi Arabian two bit royalty(the country that 11 out of 19 9/11 terrorists came from) is suddenly the big heros---Bush has to rush over and lick boots to beg for more oil. And offer then NUCLEAR REACTORS to "gaurrantee their energy future". The only things Saudi Arabia has more of than oil is sand and sunshine, offer them solar power. No, Saudi Arabia wants nuclear weapons, not solar power---you cann't make solar panels into bombs. The next time that terrorists attack us, they'll have nuclear weapons---thanks to GW Bush.
Posted by: Wetdog | July 18, 2008 at 06:24 AM
----"The near future world does not have many choices for personnal transportation vehicles. We will soon run out of cheap fossil liquid fuel. We can't produce enough agro-fuels to satisfy 1 + billion gas guzzlers and feed 10 + billion people."-----
We can use exactly the same vehicles we use now. All we need to do is use biofuels in them.
We have already run out of cheap fossil liquid fuel, we will never run out of cheap liquid biofuel, it is renewable, we just grow more, it is non-polluting and produces no greenhouse gas.
We can easily produce enough biofuels to replace petroleum oil. Saltwater algae grows best in desert conditions in saltwater, current technology produces roughly 5,000 gallons per acre. We have a LOT of deserts and saltwater available.
Ethanol can be made from any type of plant source. It can be made from trees thinned out of managed timber stands. Trees are thinned at about 15 to 20 ft,---about 2 to 3 thousand per acre. Each thinned tree contains about 1 ton of pulp producing material. That is about 140,000 to 210,000 gallons per acre of thinned managed timber stands.(current yeild about 70 gallons per ton) That is wood that is just piled up and burned now. Why not use it to power our vehicles.
By the time you account for production, transportation, and refining costs--each gallon of biofuel replaces the need for 2.3 gallons of crude oil. Petroleum is extremely wasteful and inefficient. Our current usage rate of petroleum crude is 20.7 million barrels per day(in the US)---we could do the same things we are doing right now with biofuels equivalent to 9 million barrels.(42 gal./barrel)
Posted by: | July 18, 2008 at 02:50 PM
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Years ago, scientists were saying the world could grow five times the amount of food it was currently producing. I guess they were wrong, seeing as we can't even grow a bit extra for biofuels without pushing the price up catastrophically.