1. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Water for Bioenergy or Food? Topic Introduction Nadine McCormick International Union for Conservation of Nature www.iucn.org/energy nadine.mccormick@iucn.org

2. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Bioenergy context Volatile oil prices Climate change Energy security Rural development

3. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Real bioenergy context? Voltatile oil prices Climate change Energy security Rural development

4. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Key definitions Bioenergy - any energy sourced from non-fossil biomass used for heat, electrical power, or transport. Biofuels – liquid fuels derived from biomass that can be used for transport or heating purposes –bioethanol – produced from crops such as sugarcane, sugarbeet, corn, wheat and barley –biodiesel – produced from seeds such as palm, jatropha, rapeseed, sunflower and soy “1st generation” biofuels – traditional production from sugars, starches and oils contained in plants “2nd generation” biofuels – produced from cellulose contained in wood, grasses and agricultural waste

5. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Biomass in world energy use More than 2.5bn people depend on traditional forms of biomass WEO (2008) Biomass accounts for approx.10% world primary energy demand, 7% if traditional biomass use is excluded (6% for heat, 1% for transport) Biofuels: 1.5% in 2006, predicted up to 5% in 2030 Source: OECD/IEA, 2008

6. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Global biofuel policy targets More than 50 targets/mandates worldwide Source: As at March 2008 Petersen (ERAE, 2008) http://erae.oxfordjournals.org/cgi/content/abstract/jbn016v1

7. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Global biofuel policy targets Some revisions down but all targets and mandates maintained New Zealand M 2.5 per cent ethanol share by 2012 Queensland M 5% 2008 biodiesel mandate blocked, set for 2010 introduction USA M Will fall short of mandate by 20% Thailand M Reduction in price of B5 biodiesel Germany M biodiesel blend for 2009 reduced from 6.25% to 5.25%

8. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Source: Guardian, 22 Nov 2008 http://www.guardian.co.uk/environment/2008/nov/22/food-biofuelshttp://www.guardian.co.uk/environment/2008/nov/22/food-biofuels World food, feed, fibre and energy production will require a 10% increase in farmland by 2030 (OECD, 2008)

9. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Rising food prices? http://seekingalpha.com/article/116558-global-slowdown-to-hit-low-income-countries-hard-in-2009 Historically low food prices Lower stocks as growth in demand greater than supply (higher meat consumption, stagnating yields, etc.) Low investment PLUS shocks of: –Droughts –Higher input costs –Biofuel policies – responsibility for approx. 30% of 2008 price spike (FAO)

10. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Availability Access StabilityUtilization It’s not just the price

11. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Food security assessments Potential negative effectsPotential positive effects Reduced access to food due to price increases driven by competition for biomass for energy Decreased food availability due to replacement of subsistence farm land by energy plantations Increased environmental pressure due to introduction or expansion of unsustainable bioenergy systems (water pollution, biodiversity loss, land degradation) Price pressure on other goods and services related to land-use and biomass Competition for resources – land use, water and labour Diversification of feedstock crops Infrastructure development and employment (rural) Diversification of domestic energy supply Reduced household energy burden (women and children) SME energy access improved Increased agricultural investment and technological advances Climate change mitigation Revenue from payment for environmental services and monetization of carbon credits Based on FAO Bioenergy and Food Security Project Proposal (2006) ?

12. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Win-win-win-win? E.g. Decentralised biodiesel resource centers for improving rural energy services and poverty alleviation (India) Resource assessment identified indigenous tree species- Callophyllum inophyllum –IUCN Red List Species AND –potential for renewable energy development (Straight Vegetable oil- SVO(55%) Applied Environmental Research Foundation (www.aerfindia.org)www.aerfindia.org

13. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Water/energy relationships Source: International Water Association

14. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Comparing water footprints uranium (0.09 m3/GJ) natural gas (0.11 m3/GJ) coal (0.16 m3/GJ crude oil (1.06 m3/GJ). wind energy (negligible) solar thermal energy (0.30 m3/GJ) hydropower 22.3 m3/GJ Biomass: 24 - 143 m3/GJ Source: UNESCO-IHE (2008)

15. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Different pathways

16. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Not all crops are the same! uranium (0.09 m3/GJ) natural gas (0.11 m3/GJ) coal (0.16 m3/GJ crude oil (1.06 m3/GJ). wind energy (negligible) solar thermal energy (0.30 m3/GJ) hydropower 22.3 m3/GJ Biomass: 24 - 143 m3/GJ Source: UNESCO-IHE (2008) Feedstock and location make a difference

17. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Biofuel yields of selected feedstock

18. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Differing GHG lifecycle emissions

19. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Factors for determining impact Scale of production – industrial vs small scale/intensive or extensive Crop used and how it’s grown and harvested (e.g. rain- fed, irrigation efficiency, etc.) Competition vs. substitution effect Local ecosystem and climate Other policy areas (energy, environment, agriculture, rural development) Governance effectiveness and stakeholder engagement Future variability of factors - climate change, financial crisis, etc.  Need integrated decision-making

20. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Priorities and trade-offs Economies of scale vs. poverty reduction and biodiversity conservation Resource competition avoidance vs. high yields Food crop avoidance vs. market flexibility and reduced risks Greenhouse gas reduction vs. need for liquid fuels for transportation Efficient water use vs. high yields  Need to identify real policy priorities and incentivise accordingly

21. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Apply existing tools Environmental flows allow allocation through negotiation by stakeholders within the limits of availability, to including for ecosystem services Lessons from agriculture and other sectors? www.iucn.org/energy

22. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Main messages 1.Water key for both energy and agriculture – need coordinated of policies and integrated decision-making on bioenergy 2.Not all biofuels are the same – need to tools to distinguish better from worse and promote best practice 3.Focus on real priorities and adjust risk assessment accordingly 4.Biofuels is a new market for agriculture – apply the lessons and tools we know now, don’t wait!

23. 2.3.3. Water for bioenergy or food, World Water Forum, 19th March 2009 Key issues to consider Policies Is there really a food vs. food dilemma? Should bioenergy policies differ from agricultural policies? Implementation Are multi-purpose crops better for food security? If and how can we avoid conflict in resource use, especially for water?