Sustainability Criteria: Land Use & Livelihoods Sustainable Bioenergy – Challenges & Opportunities October 2006 Arun Kashyap Advisor, Private Sector Development

Underlying Principle  Millennium Development Goals  Halve the proportion of people living in extreme poverty by 2015  Sustainable livelihoods; economic growth  Access to basic goods and services  Sustainable Energy  Energy that is produced and used in ways that simultaneously support human development over the long-term in all its social, economic, and environmental dimensions

Social Issues: Equity  Needs of the people who do not have access to energy services  Lack of access to energy services perpetuate poverty  Sustainable patterns of energy supply & consumption  Gender  Reduce burden  Improve health impacts  Who is the consumer?

Environmental Integrity  Climate Change  Leading the emphasis on bioenergy  Land Use  Opportunity Cost – food vs. fuel  Biodiversity  Monoculture vs. diversity  Indigenous vs. foreign species  forests vs. cash crops

Economic Growth: Efficiency  Sustainable livelihoods vs. energy services only  Polymers, lubricants, construction, pharmaceuticals  Access; Assets; Capability  Nature of technology  Demand based and appropriate: bioethanol; biodiesel; biogas  Choice of species  Food vs. non food  Local area specific

First Act Locally then Globally  Address the local demand  Sustainable livelihoods model with energy services as a component  Participatory efforts/Transparency  Select the marginal lands  Preferably non-food crops that provide multiple products  Adaptation strategy

Public Private Partnerships  Local Market Creation  Encourage Public Private Partnerships  Strengthen community based entrepreneurs  Business model must be commercially viable  Integrated value chain with access to market

Institutional Changes An energy future compatible with sustainable development will not happen by itself, thus policy change is required, including  Making markets work better, including mobilizing investments  Focusing on the innovation chain  Increasing capacity to support policy and institution building, and transfer of technology

The Innovation Chain Widespread Diffusion of New Energy Technologies through Innovation Pipeline  Research and Development  Demonstration projects  Early deployment (cost buy-down)  Widespread dissemination

Certification Criteria Build upon existing ecological and social sustainability criteria including from Forestry, Agriculture, Biomass &CDM  Regional Basis  Based on current practices  Should not create barriers to market creation  Diagnostics instruments and tool kits