Identifying Pathways for Provision of Bio-Energy in SSA: Policy - - PDF document

Identifying Pathways for Provision

• f Bio-Energy in SSA: Policy

Issues

Charles B.L. Jumbe, PhD (Econ)

Centre for Agricultural Research and Development (CARD) Bunda College of Agriculture (University of Malawi) in partnership with WIP-Germany & FANRPAN funded by the EU

__________________________________________________________________________________P Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5 September 2008 ___________________________________________________________________________________

Background The COMPETE Project The role of FANRPAN Why do we need policies Scope of Work on Policies The approach Key findings The future Way forward for FANRPAN Take home messages

Outline

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Fossil fuels continue to be the pivot of economic and

social development of all countries around the world

However, on-going debate is now centred especially

around three main facets

Increasing prices currently reaching US$130 per barrel Ensuring energy security - reducing dependence on imported

liquid fuels from politically fragile states

Increased environmental concerns (GHG emission) and air

pollution due to the burning of fossil fuels. Therefore, biofuels are considered as an alternative to

fossil fuels

Introduction

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

The Competence Platform on Energy Crop &Agroforestry

Systems for Arid and Semi-arid Ecosystems – Africa

A 3-year project (2006-2009) funded to the tune of €1.5

mn by the EU under the 6th Framework Programme, Priority A.2.3: Managing Arid and Semi-arid Ecosystems

Objectives

to establish a platform for policy dialogue & capacity building to identify pathways for the sustainable provision of bioenergy to enhance the exchange of knowledge on biofuels

development Implementation

Through 7 WPs involving 41 institutions incl. FANRPAN

The COMPETE Project

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

To produce outputs for the WP 6-Policy

Development whose objectives are:

To develop & evaluate policy initiatives for

bioenergy development in Africa

To develop a roadmap for policy research To provide policy recommendations on how to

harness the potential of biofuels without damaging livelihoods and the ecosystem

To share information from the policy work through

seminars and workshops

The role of FANRPAN

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Why do we need policies?

Global production of biofuels doubled over the

5 five years and is likely to double again in the next four years.

FAO (2007) predicts that demand for biofuels to

grow by 170% in the next three years and to contribute 25% of the world energy needs in the next 15 to 20 years.

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Brazil has set targets that all diesel contain 2% biodiesel

by 2008 & 5% by 2013

The EU target of 5.75% biofuels share in all transport fuel

by 2010 means 18.6 mn. tons of oil equivalent of biofuels Japan will need 6 bn. litres of ethanol every year to

meet the blend ratio of only 3% biofuels.

China will need 22.7 mn. metric tonnes of biofuels to

blend 10% biofuel into all Chinese cars by 2020.

Indonesia to increase its palm oil production from 64,000

sq km to 260,000 sq km by 2025.

Sources of Growth

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

► The United States will use 28.4 billion litres of biofuels for

transportation by 2012.

► Across the US, 20% of the whole maize crop went to

ethanol in 2006 to meet only 2% of automobile fuel use.

► An extra 80 mn. acres (36 mn ha) of land will be required

if maize ethanol alone will be used to meet the US target.

Eliminating gasoline use entirely in USA will require

doubling the current 450 mn. acres (200 mn ha) of available for crop production- making it infeasible!

Sources of Growth

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

How will these targets achieved? Eyes are on AFRICA

Investors are coming to Africa to acquire land &

put up plants and machinery for commercial biofuels production

About 4m sq km of land will be grown to energy

crops in Southern Africa region (e.g., Jatropha)

• ver the next 5 years

The BIG Question

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Scope of Work on WP 6

To explore the extent to which the national

development energy policies incorporate strategies for mainstreaming or supporting the development of the biofuel sector.

Key questions:

• 1. What do the national policies state with regard to

bioenergy or biomass energy development?

• 2. What are the notable gaps in the policies across

countries with regard to bioenergy and energy crops development?

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Approach

PRSPs/national development frameworks National energy policies Specific biofuels strategies National Trade Policies Regional Development Frameworks (SADC,

ECOWAS, COMESA)

International biofuels/trade policies (e.g., WTO,

USA, EU & Asia)

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Summary of key findings

National Development/Energy Policies

• Only the PRSP for Ghana contains specific strategies for

biogas development, with a target of substituting 20% of national

gas and oil consumption with biodiesel and 30% of paraffin to be replaced with Jatropha oil by 2015.

• Mozambique has adopted a policy for large-scale production
• f biofuels, including the gradual introduction of blending of

fossil fuels with biofuels initially at 5 – 10%.

• South Africa has a specific biofuels strategy aims at achieving

market penetration of 4.5% in biofuels by 2013.

• Despite that Malawi has more than 20 years experience in

bioethanol production-it has no specific biofuel strategy

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Summary of key findings

International policies

There is no clear WTO position on biofuels that may

affect international trade in biofuels:

Biofuels classification within the context of the

WTO harmonized system

How subsidies to promote the production or

consumption of biofuels fit in the context of WTO rules, and

Consistency of domestic regulations and biofuels

standards.

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Summary of key findings

Incentives

• Substantial government support has been provided to many

countries that have made significant progress in biofuels such as South African, USA and other countries in Asia & Europe

• Implications
• African biofuel sector is unlikely to be competitive on

international markets due to

• Subsides and tax incentives provided to producers &

consumers of biofuels in developed countries

• Law state of art in biofuel production & processing
• High international standard specifications for biofuels
• Lack of clear coherent supportive policy on biofuels

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Caution!

While the consequences of biofuels on food supply

remain uncertain, they cannot be ignored.

Biofuels may be sustainable in some instances but

destructive in others.

If left unmanaged, biofuel production will put heavy

burden on the poor in most countries in Africa

It is politically and socially immoral (insane) to transform

all food into fuel for cars, yet many people go to bed hungry.

By taking food off of the table and use it to produce fuel for

cars will make poverty in Africa worse since most people are net food buyers.

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

The “cost” of inaction

Despite the controversies surrounding biofuels and its

effects on the poor, a “wait and see” approach will lead to

Food insecurity as more land will be taken away from

mainstream agriculture for growing of energy crops

Damage to environment & loss of biodiversity

through clearing of forests and/or encroachment of protected areas for biofuels

Missing out on opportunities of biofuels development To most oil-importing countries, biofuels offers some

relief on the fuel import bill in oil-importing countries

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

A grain of hope

Agriculture has always adapted to the changing

needs of mankind- This should also be possible with biofuels.

If we slow down the pace, allow scientists and

technologists to develop technologies that will

increase productivity of agriculture to meet growing global

demand for both food and biofuels.

allow use of non-food feedstock to produce biofuels

A “happy ending” is possible only if agriculture

can supply both energy & food needs

________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

In conclusion

As we now live in a global village, any significant shift

in agriculture landscape in the industrialized world will heavily impact Africa.

Biofuels era is here to stay! As such, countries and

everyone must face reality, and adjust accordingly in

• rder to survive in the fast changing world

“It is not the strongest of the species that survives,

nor the most intelligent that survives. It is the one that is the most adaptable to change.” Charles Darwin (1809 – 1882) from “On the Origin of Species” (1859).

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

FANRPAN’s Niche

As biofuels are expanding rapidly in Africa, FANRPAN

should be in the forefront:

RESEARCH- To support rigorous research & analysis

to provide evidence-based responses to biofuel development

Better understand the direct and indirect impacts of

bioenergy development on production systems.

Assess technical and policy options for both reducing

the deleterious impacts and enhancing any benefits of biofuels development.

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

FANRPAN’s Niche

CAPACITY (POLICY ADVOCACY & DIALOGUE)-

To provide guidance to governments on biofuels policy & guidelines that safeguards rural communities and the environment

VOICE-To sensitize politicians & civil society on the

potential benefits as well as dangers of unregulated biofuels expansion

There will be a COMPETE Workshop on ‘Bioenergy

Policies for Sustainable Development in Africa’ in Bamako, Mali from 25 to 28 November 2008

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Take-home messages

1. Human well-being & rights of every person at the centre of SSA biofuels strategies, policies, programs. 2. Policies urgently needed in SSA:

• To protect the poor from exploitation by private interests at the

expense of local livelihoods

• To prevent from falling into the trap of replacing food crops with

energy crops for producing fuel to power vehicles

• To prohibit biofuels expansion to protected areas (e.g., forests,

catchment suitable for of biofuels to rural development

3. Define the biofuels development path in SSA:

• Smallholder focus for rural development (e.g. in Mali &

Tanzania) other than commercial focus

• Expansion beyond small-scale to be carefully controlled &

monitored

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________

Thank you for your

attention!

charlesjumbe@yahoo.com

___________________________________________________________________________________ Presented at the FANRPAN Stakeholders Regional Policy Dialogue & Annual General Meeting Crossroads Hotel, Lilongwe, Malawi, from 1 to 5September 2008 ___________________________________________________________________________________