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Biofuels and sustainability

A barrage of claims and counter-claims has greeted the introduction of the Renewable Transport Fuels Obligation (RTFO) last month about the merits of biofuels, and particularly those produced from food crops

The RTFO establishes an obligation on fuel suppliers to ensure all petrol and diesel sold at UK fuel pumps contains at least 2.5 per cent biofuels content. By 2010, this content is due to rise to 5 per cent. Fuel suppliers failing to achieve the target will be required to pay a penalty of 15p/l making it prohibitively expensive not to comply with the regulation.

The government says that the obligation is part of the drive to reduce greenhouse gas emissions from transport and that this measure is expected to save around 2.6-3 million tonnes of CO2 by 2010. By 2010, the government has announced it plans to link reward of certificates to the level of greenhouse gas savings of the fuel; and, by 2011, to implement mandatory sustainability standards.

The National Farmers Union and the Environmental Industries Commission welcomed the introduction of the RTFO saying that biofuels - particularly those produced in the UK - can deliver clear benefits, providing government policy moves rapidly to require high standards of sustainability for the fuel which comes to market.

Environment groups like the RSPB, Friends of the Earth and Greenpeace counter that sustainability safeguards are weak and inadequate; and that the RTFO will lead to the destruction of rainforest and other valuable eco-systems and wildlife habitats. They also challenge the claim that carbon savings will be realised when the full production life-cycle and displacement impacts of biofuels are taken into account. Many environmental organisations are now calling for a moratorium on a policy designed to speed their introduction. Campaigns have been highly visible, and effective, with recent advertisements in the national press leading to over 14,000 letters to the Transport Secretary Ruth Kelly.

The current opposition of environmental groups is a U-turn on the earlier stance of many groups who were strong supporters of biofuels, urging their introduction as quickly as possible. New concerns are being driven by the rapid expansion of demand for biofuels in the US and, more recently, the EU, which agreed in March 2007 to a 2020 target for biofuel use equivalent to about 18 per cent of fuel supplies (assuming these can be supplied sustainably). The destruction of rainforest through plantations of soy and displacement of agricultural activity in Amazonia; and palm oil plantations in Indonesia and Malaysia has been highlighted.

The development organisation Oxfam also criticises the policy, citing reports linking biofuels to human rights abuses, slave labour, and rising global food prices. A United Nations expert on food rights even described the move to biofuels recently as a ‘crime against humanity’ and ‘a growing catastrophe for the poor’.

Campaigns and concerns regarding biofuels have now reached the highest levels of government. The Prime Minister has stated that he wants the issue of high food prices and the link to biofuel production to be on the agenda of the G8 summit in Japan in July. The government is also actively supporting the strengthening of sustainability criteria within forthcoming European Directives and linking future targets to sustainable supply of feedstock. Government policy has undoubtedly shifted with recent speeches indicating the government would not support higher targets without sustainability guarantees.

Commenting on the introduction of the RTFO, the DfT Minister responsible, Jim Fitzpatrick said: “We know people are concerned about the environmental risks associated with expanding biofuel production and we take those concerns very seriously. That is why we want to introduce mandatory standards as soon as possible to guarantee that biofuels don't cause deforestation or food shortages and we are leading international work to do this. In the meantime, we require suppliers to produce sustainability reports, providing an immediate incentive for them to source biofuels responsibly.”

The UK proposals for carbon and sustainability reports to be included as a requirement of the RTFO is the first scheme of its type and was developed through the LowCVP with extensive involvement from industry and NGOs. It establishes performance targets for companies and a robust and transparent basis to assess and benchmark how sustainably biofuels are being sourced.

To receive Renewable Transport Fuel Certificates suppliers must provide a carbon and sustainability report on individual batches of fuel entering or produced in the UK. Information must be supplied monthly on a confidential basis with publicly available, independently verified reports annually on:

* The feedstock type and origin
* Environmental or social standards to which the feedstock has been grown
* Land-use in 2005
* Carbon intensity of the fuel including direct land use changes
* Actions to increase sourcing of sustainable biofuels and those of lower carbon intensity.

Environmental groups have criticised the scheme for allowing companies to report that they “don’t know” the origin of feedstock and for delaying the introduction of mandatory standards. They have also highlighted that reporting cannot address the indirect effects of biofuels - an emerging and key concern. Opposition MPs are also unconvinced. The Conservative Party voted against the RTFO Order while the Liberal -Democrats abstained.

Following criticism of policy by a range of national and international experts and publication of new research questioning the greenhouse gas savings of biofuels, the government has responded by announcing a policy review, focused on the indirect effects of the growing biofuels demand. The government’s newly established Renewable Fuels Agency (RFA) has been charged with coordinating the review, which is expected to report by the end of June to input to EU policy negotiations.

Most past studies, including one by the Low Carbon Vehicle Partnership1, have shown that the better biofuels can produce significant reductions in greenhouse gas emissions over their full life-cycle. Critics counter, however, that these studies have ignored the indirect effects; in particular where the cultivation of biofuels replaces food production, which itself moves to displace previously uncultivated land. The displaced food production may take place on what was forested land or former pasture which, if left undisturbed, would have acted as a more effective carbon ‘sink’ than the biofuel crop which replaces it. An influential recent study from researchers at Princeton University reached exactly this conclusion.

The RFA review will consider recent and anticipated future demand and supply scenarios for biofuels to 2020. It will examine the key drivers of land use change and increasing food prices and their effects upon biodiversity, greenhouse gas savings and food insecurity. Conclusions to the review will highlight the sustainability risks associated with different levels and forms of biofuel targets to 2020 and the policies to mitigate the potential negative indirect effects.

The RFA is ensuring its deliberations are based upon the best available knowledge. It has issued a Call for Evidence and has arranged a series of expert seminars to inform the study that will be held in the UK, USA and Netherlands. 15 expert consultants from across Europe are working on a series of studies to inform the review, the outcomes of which will be presented to a Stakeholder seminar in May. The RFA is determined the review will be independent and based upon sound science. The outcome could be significant for future UK biofuels policy and many operators will await the outcomes before considering whether to support high blend biofuels use in their fleets.

The Low Carbon Vehicle Partnership was established in 2003 to help accelerate the shift to low carbon vehicles and fuels. It now has over 270 stakeholder members from motor and energy companies, government, academics, environmental NGOs and others.

The LowCVP’s conference
The LowCVP’s annual conference, which will take place alongside the Motor Show on 23 July at Dockland’s ExCel, will provide a forum for the discussion of the key, current policy issues in the promotion of low carbon road transport. Delegates will learn the outcomes of the current ‘Gallagher Review’ of biofuels policy, government’s response to the King Review of low carbon cars, insiders’ views on impending EU car CO2 regulation and all the latest, leading issues at the top of the low carbon road transport agenda. Delegates will also have the chance to visit the Motor Show on ‘Business Day’ after the conference ends.

1 Well-to-wheel evaluation of the production of ethanol from Wheat, LowCVP (2005).
See:www.lowcvp.org.uk/resources-library/reports-and-studies.asp