Multi-actor governance of sustainable biofuels in developing countries: The case of Mozambique

This paper describes and analyses the multi-actor governance process that made Mozambique the first African nation-state to develop a national policy framework for sustainable biofuels. The paper draws on findings from action research conducted in Mozambique between December 2008 and July 2012. We analyse interactions between the changing governance context, the course of the multi-actor governance process, and the choices in relation to governance framework characteristics and content for four successive stages of governance framework development. This provides the basis for reflection on the competences required for effective multi-actor sustainability governance, and a discussion about the role of the nation-state in sustainability governance of global economies such as biofuels.The governance framework for sustainable biofuels has contributed to a more transparent and secure investment climate for biofuels in Mozambique. Key factors for success were (1) the presence of different types of competences during the various stages of the governance framework development, (2) closing the gap between ‘licences to sell’ and ‘licences to produce’ across different governance levels, and (3) balancing between the short- and long-term objectives for biofuel production in Mozambique and requirements of global biofuel markets. Developing-country nation-states can provide an essential contribution to these success-factors for global governance of sustainable biofuels.     

Which smallholder farmers benefit most from biomass production for food and biofuel? The case of Gondola district,central Mozambique

We analysed the influence of the mode of participation in biomass production for biofuels on food security of different farm types. We studied two modes of participation in biomass production: an outgrower scheme for sunflower and a jatropha plantation offering full time employment and assessed the four dimensions of food security: availability, access, stability and utilization in smallholder farms in Central Mozambique. We interviewed 80 households who were participating in the sunflower outgrower scheme, had a household member working on the jatropha plantation or were not participating with biofuel production. For each household we quantified four indicators: maize sales minus purchases, gross revenue, revenue diversity, and household dietary diversity scores. Involvement of smallholder farmers with biomass production for fuel had a positive or no impact on the four dimensions of food security at the farm level. Positive food security impacts from working on the biofuel plantation were improvements in availability for the larger farms and improvements in access for the smaller farms. Utilization of food was generally not impacted. Impacts on food security from the sunflower outgrower scheme were minor. There is scope to improve the outgrower scheme with services and inputs that increase sunflower yields and give positive spill-overs to other crops.     

The sustainability of sugarcane-ethanol systems in Guatemala: Land, labour and law

Since 2010, Guatemala has been exporting ethanol, principally to European markets. This means that Guatemalan biofuel has been certified sustainable, although this is deeply contested with NGO reports drawing attention to the negative impacts of ‘agrofuels’, particularly for marginalised communities. Guatemala therefore provides an excellent case study for examining not only the impacts of increased global demand for biofuels, but also whether sustainability, as conceptualised by the European Union's Renewable Energy Directive, can capture those issues that are salient to the Guatemalan context. Drawing on more than eighty qualitative, in-depth interviews, this paper finds that the bloc's governance framework for biofuels fails to capture many of the issues that matter most to local people in Guatemala, namely land access, trade unions and compliance with the law. This paper argues that the current framework therefore runs the risk of exacerbating the plight of Guatemala's already marginalised rural communities.     

Trends and sustainability criteria of the production and use of liquid biofuels

Environmental impacts associated with the use of fossil fuels, rising prices, potential limitations in supply and concerns about regional and national security are driving the development and use of biomass for bioenergy, biofuels and bioproducts. However, the use of biomass does not automatically imply that its production, conversion and use are sustainable. Conflicts between various ecosystem services (economic production of food, fodder and fuels, biodiversity, social and cultural values, etc.) that are provided by fertile land are increasing as well. Hence, a developed thinking on how to balance between these services is desirable.There is a significant amount of information available on biofuels and their sustainability. In this paper, different initiatives and sustainability criteria for biofuels are presented and assessed.35 criteria were found in emerging sustainability assessment frameworks. The majority of 12 criteria were focused on environmental issues, 4 were social and only 1 was economic. Energy balance and greenhouse gas balance were perceived as especially critical, social criteria ranked generally low. Although being perceived as important, food security ranked very low.     

Integrating social and value dimensions into sustainability assessment of lignocellulosic biofuels

The paper clarifies the social and value dimensions for integrated sustainability assessments of lignocellulosic biofuels. We develop a responsible innovation approach, looking at technology impacts and implementation challenges, assumptions and value conflicts influencing how impacts are identified and assessed, and different visions for future development. We identify three distinct value-based visions. From a techno-economic perspective, lignocellulosic biofuels can contribute to energy security with improved GHG implications and fewer sustainability problems than fossil fuels and first-generation biofuels, especially when biomass is domestically sourced. From socio-economic and cultural-economic perspectives, there are concerns about the capacity to support UK-sourced feedstocks in a global agri-economy, difficulties monitoring large-scale supply chains and their potential for distributing impacts unfairly, and tensions between domestic sourcing and established legacies of farming. To respond to these concerns, we identify the potential for moving away from a one-size-fits-all biofuel/biorefinery model to regionally-tailored bioenergy configurations that might lower large-scale uses of land for meat, reduce monocultures and fossil-energy needs of farming and diversify business models. These configurations could explore ways of reconciling some conflicts between food, fuel and feed (by mixing feed crops with lignocellulosic material for fuel, combining livestock grazing with energy crops, or using crops such as miscanthus to manage land that is no longer arable); different bioenergy applications (with on-farm use of feedstocks for heat and power and for commercial biofuel production); and climate change objectives and pressures on farming. Findings are based on stakeholder interviews, literature synthesis and discussions with an expert advisory group.     

External governance and the EU policy for sustainable biofuels,the case of Mozambique

Growing demand for transport biofuels in the EU is driving an expansion of the industry in developing countries. Large-scale production of energy crops for biofuel, if mismanaged, could cause detrimental environmental and social impacts. The aim of this study is to examine whether the newly adopted EU Directive 2009/28/EC and its sustainability certification system can effectively ensure sustainable production of biofuels outside the EU. Mozambique, a least developed country with biofuels ambitions, is selected as empirical case. The effectiveness of the EU policy in analysed employing ideal models of external governance (hierarchical, market and network governance) as analytical framework. The findings show that the EU attempts to impose its rules and values on sustainable biofuels using its leverage through trade. The market approach adopted by the EU is expected to produce only unstable (subject to abrupt changes of market prices and demand) and thin (limited to climate and biodiversity issues) policy results. Stronger emphasis on a network oriented approach based on substantial involvement of foreign actors, and on international policy legitimacy is suggested as a way forward.     

The price for biofuels sustainability

The production and usage of biofuels has increased worldwide, seeking goals of energy security, low-carbon energy and rural development. As biofuels trade increased, the European Union introduced sustainability regulations in an attempt to reduce the risks associated with biofuels. Producers were then confronted with costs of sustainability certification, in order to access the EU market. Hopes were that sustainably-produced biofuels would be rewarded with higher prices in the EU. Based on a review of recent literature, interviews with traders and price data from Platts, this paper explores whether sustainability premiums emerged and if so, did they represent an attracting feature in the market for sustainable biofuels. This article finds that premiums for ethanol and biodiesel evolved differently between 2011 and 2012, but have been in general very small or inexistent, with certified fuels becoming the new norm in the market. For different reasons, there has been an apparent convergence between biofuel policies in the EU and the US. As market operators perceive a long-term trend for full certification in the biofuels market, producers in developing countries are likely to face additional challenges in terms of finance and capacity to cope with the sustainability requirements.     

Insights into biofuel development in Burkina Faso: Potential and strategies for sustainable energy policies

In many African countries, the upswing in oil prices is one factor that favours the adoption and implementation of a national biofuel policy. This trend has a major impact on state budgets and domestic trade balances, while also limiting the access of rural inhabitants to modern energy services. Contribution of biofuels in stabilizing the energy sector, influences ongoing negotiations on the global dynamics of climate change, the reduction in greenhouse gas (GHG) emissions and sustainable development. The question of biofuels as an alternative energy thus depends on international, national and local considerations. Biofuels represent opportunities, e.g., energy independence and security, new national income and employment sources, as well as potential food security problems. African policy makers therefore need to make the right choices to guide the development of biofuel production and use.This article aims to support the development of a biofuel policy by reviewing the latest technical, economic, environmental and social knowledge so as to be able to evaluate the potential and limits of biofuels in Burkina Faso.     

The future of bioenergy and rural development policies in Africa and Asia

This special issue has presented some of the specific findings of the RE-Impact Project which was commissioned and funded by the EuropeAid Cooperation Office from 2007 until its conclusion in 2010. The project aimed to provide impact assessment frameworks and influence relevant policies through direct involvement in bioenergy projects and policy analysis in South Africa, Uganda, India and China. The papers summarised here have covered issues related to Jatropha curcas and forest-based bioenergy in these countries. Taking an overall look at the project findings we can identify a number of general conclusions relevant for the future of bioenergy and rural development in Africa and Asia. First, only local and context-specific sustainability assessment can identify the risk and responsibilities of the different groups and the exact impact on the environment. Second, many initiatives both in biofuels and forest-based bioenergy are marred by a lack of understanding of the life-cycle financial analysis. Third, careful consideration of local physical and social conditions and the economics of the production chain can identify real opportunities for rural development using bioenergy. The current global impasse in bioenergy policies could actually be advantageous to the development of bioenergy in developing countries. Without the pressure from America and Europe to develop bioenergy systems for climate change mitigation, countries in Africa and Asia may have the breathing room to shape bioenergy systems for their own internal energy supply in an orderly fashion. However, in order to avoid environmental and social impacts it will be necessary to articulate together elements of a number of measures including market-based certification, national policy formulation, national legislation, impact assessments, sustainability planning, land use planning, research, monitoring and evaluation taking into account country and project specific sustainability criteria. Unfortunately, many of the countries in Africa and Asia where bioenergy can play an important role still lack institutional structures able to articulate this sustainable development.     

Biofuels: Environment,technology and food security

The imminent decline of the world's oil production, its high market prices and environmental impacts have made the production of biofuels to reach unprecedent volumes over the last 10 years. This is why there have been intense debates among international organizations and political leaders in order to discuss the impacts of the biofuel use intensification.Besides assessing the causes of the rise in the demand and production of biofuels, this paper also shows the state of the art of their world's current production. It is also discussed different vegetable raw materials sources and technological paths to produce biofuels, as well as issues regarding production cost and the relation of their economic feasibility with oil international prices. The environmental impacts of programs that encourage biofuel production, farmland land requirements and the impacts on food production are also discussed, considering the life cycle analysis (LCA) as a tool.It is concluded that the rise in the use of biofuels is inevitable and that international cooperation, regulations and certification mechanisms must be established regarding the use of land, the mitigation of environmental and social impacts caused by biofuel production. It is also mandatory to establish appropriate working conditions and decent remuneration for workers of the biofuels production chain.     

Recent developments of biofuels/bioenergy sustainability certification: A global overview

The objective of this paper is to provide a review on the latest developments on the main initiatives and approaches for the sustainability certification for biofuels and/or bioenergy. A large number of national and international initiatives lately experienced rapid development in the view of the biofuels and bioenergy targets announced in the European Union, United States and other countries worldwide. The main certification initiatives are analysed in detail, including certification schemes for crops used as feedstock for biofuels, the various initiatives in the European Union, United States and globally, to cover biofuels and/or biofuels production and use. Finally, the possible way forward for biofuel certification is discussed. Certification has the potential to influence positively direct environmental and social impact of bioenergy production. Key recommendations to ensure sustainability of biofuels/bioenergy through certification include the need of an international approach and further harmonisation, combined with additional measures for global monitoring and control. The effects of biofuels/bioenergy production on indirect land use change (ILUC) is still very uncertain; addressing the unwanted ILUC requires sustainable land use planning and adequate monitoring tools such as remote sensing, regardless of the end-use of the product.     

How much hope should we have for biofuels?

This paper revisits the recent developments in biofuel markets and their economic, social and environmental impacts. Several countries have introduced mandates and targets for biofuel expansion. Production, international trade and investment have increased sharply in the last few years. However, some analysts linked biofuels to the 2007-2008 global food crisis. Existing studies diverge on the magnitude of the projected long-term impacts of biofuels on food prices and supply, with studies that model only the agricultural sector showing higher impacts and studies that model the entire economy showing relatively lower impacts. In terms of climate change mitigation, biofuels reduces GHG emissions only if GHG emissions related to land-use change are avoided. When biofuel production entails conversion of forest to cropland, net reduction of GHG would not be realized for many years. Existing literature does not favor the diversion of food for large-scale biofuels production, but the regulated expansion of biofuels in countries with surplus lands and a strong biofuel industry cannot be ruled out. Developments in non-food based or cellulosic (or second generation) biofuels may offer some hope, yet they still compete with food supply through land use and are currently constrained by a number of technical and economic barriers.     

Biofuels and food security: Micro-evidence from Ethiopia

There is considerable controversy about the impact of biofuels on food security in developing countries. A major concern is that biofuels reduce food security by increasing food prices. In this paper we use survey evidence to assess the impact of castor production on poor and food insecure rural households in Ethiopia. About 1/3 of poor farmers have allocated on average 15% of their land to the production of castor beans under contract in biofuel supply chains. Castor production significantly improves their food security: they have fewer months without food and the amount of food they consume increases. Castor cultivation is beneficial for participating households’ food security in several ways: by generating cash income from castor contracts, they can store food for the lean season; castor beans preserve well on the field which allows sales when farmers are in need of cash (or food); spillover effects of castor contracts increases the productivity of food crops. Increased food crop productivity offsets the amount of land used for castor so that the total local food supply is not affected.     

Biomass energy in Vojvodina: Market conditions,environment and food security

In this study, the policy, market conditions and food security of biomass energy sources are assessed for supplying the future needs of Vojvodina. The Autonomous Province of Vojvodina is an autonomous province in Serbia, containing about 27% of its total population according to the 2002 Census. It is located in the northern part of the country, in the Pannonia plain, in southeastern Europe.Vojvodina is an energy-deficient province. Vojvodina also has a large potential for renewable energy, especially energy from biomass (biodiesel and bio-ethanol). The lack of knowledge about renewable energy technologies by most policy-makers, potential consumers, and energy firm managers has played against renewable energy developments. The environmental impacts of programs that encourage biofuel production, farmland land requirements and the impacts on food production are also discussed, considering the life cycle analysis (LCA) as a tool.It is concluded that the rise in the use of biofuels is inevitable and that international cooperation, regulations and certification mechanisms must be established regarding the use of land, the mitigation of environmental and social impacts caused by biofuel production. It is also mandatory to establish appropriate working conditions and decent remuneration for workers of the biofuels production chain.     

Social sustainability of the Brazilian bioethanol: Power relations in a centre-periphery perspective

While the environmental and economic dimensions of sustainability have received plenty of attention in biofuel policies and assessment, only recently has the social ‘pillar’ gained increasing weight, demonstrated e.g. by debates over the dilemmas such as food vs. fuel and large vs. small-scale biofuel production. This paper calls for greater attention to power relations when assessing biofuel policies. A centre-periphery framework is applied for examining power relations in the Brazilian sugar and alcohol sector since the launching of the country's transport biofuel programme, Proálcool, in 1975. Particular attention is paid to the country's poor Northeast, today responsible for a small fraction of bioethanol production in Brazil, but highly dependent on its sugar and alcohol sector for employment and economic output. The analysis demonstrates the pervasive role of unequal and rigid power relations in shaping Proálcool's social impacts. The small sugar elite in the Northeast has increased its power and protected itself against market instability by diversifying its activity, while the benefits have failed to trickle down to the poorest in the sugarcane zone in the Northeast coast. The recent and on-going entry of new players in the Brazilian biofuel scene may provide opportunities of breaking the entrenched power structures and creating space for more pro-poor policies, notably through international sustainability certification. Any such schemes must, however, be designed carefully to avoid capture by the regional elites, and counteract the present tendencies towards further concentration of power - a danger particularly acute in the development of advanced next generation biofuels.     

Sustainability of the four generations of biofuels – A review

Biofuel has emerged as an alternative source of energy to reduce the emissions of greenhouse gases in the atmosphere and combat global warming. Biofuels are classified into first, second, third and fourth generations. Each of the biofuel generations aims to meet the global energy demand while minimizing environmental impacts. Sustainability is defined as meeting the needs of the current generations without jeopardizing the needs of future generations. The aim of sustainability is to ensure continuous growth of the economy while protecting the environment and societal needs. Thus, this paper aims to evaluate the sustainability of these four generations of biofuels. The objectives are to compare the production of biofuel, the net greenhouse gases emissions, and energy efficiency. This study is important in providing information for the policymakers and researchers in the decision-making for the future development of green energy. Each of the biofuel generations shows different benefits and drawbacks. From this study, we conclude that the first generation biofuel has the highest biofuel production and energy efficiency, but is less effective in meeting the goal of reducing the greenhouse gases emission. The third generation biofuel shows the lowest net greenhouse gases emissions, allowing the reduction of greenhouse gases in the atmosphere. However, the energy required for the processing of the third generation biofuel is higher and, this makes it less environmentally friendly as fossil fuels are used to generate electricity. The third and fourth generation feedstocks are the potential sustainable source for the future production of biofuel. However, more studies need to be done to find an alternative low cost for biofuel production while increasing energy efficiency.     

Biofuel investment in Tanzania: Omissions in implementation

Increasing demand for biofuels as a component of climate change mitigation, energy security, and a fossil fuel alternative attracts investors to developing countries like Tanzania. Ample unused land is critical for first generation biofuels production and an important feature to attract foreign direct investments that can contribute towards agricultural modernization and poverty reduction initiatives. Despite the economic justifications, the existing institutional and infrastructural capacities dictate the impacts of biofuels market penetrations. Furthermore, exogenous factors like global recessionary pressure depressed oil prices below the level at which biofuel production were profitable in 2007, making Tanzania’s competitiveness and potential benefits questionable.     

Local acceptance and heterogeneous externalities of biorefineries

Biofuels can potentially reduce lifecycle greenhouse gas emissions from energy use and help address the climate change problem. However, the siting and operation of a biofuel production facility can impact the members of the host community both positively (e.g. local jobs and income) and negatively (e.g. pollution and noise). Such ambivalent and heterogeneous external impacts result in either local support or opposition to the facility, which in turn becomes a key factor affecting biorefinery location decisions, and subsequent success of biorefineries. While a number of prior studies have analyzed economic and environmental impacts of biofuels, systematic analysis of local acceptability of biofuel production facilities is lacking. Our study explores factors that influence community attitudes towards biofuel facilities. We assess the strength of acceptability or opposition by estimating the local community's willingness to pay (WTP) either to support or to oppose a proposed biorefinery. We posit that such WTP estimates provide a more comprehensive measure of local acceptability. Results also suggest that county level socio-economic characteristics significantly influence these attitudes and WTP.     

Biofuel support policies in Europe: Lessons learnt for the long way ahead

Biofuel consumption in the EU is growing rapidly but major efforts will need to be undertaken if the EU's objectives for 2010 and beyond are to be achieved. This article analyses the strengths and weaknesses of different biofuel support policies based on the experiences gained in pioneering countries and explores scenarios for their possible impacts in the long-term. It comes to the conclusion that important pre-conditions such as fuel standards and compatibility with engines are in place or being introduced on an EU-wide basis. Current and future policy support therefore focuses on creating favourable economic or legal frameworks to accelerate the market penetration of biofuels. The ambitious targets endorsed in terms of biofuel market shares require the implementation of efficient policy instruments. At the same time, large consumption volumes and the advent of innovative production technologies make it possible for Member States to promote specific types of biofuels, depending on their main objectives and natural potentials. This will require complementary instruments such as subsidies for production facilities, user incentives or feedstock subsidies.