1. Governmental Use of Sustainability Standards: Examples and Lessons from the Biofuels Sector ISEAL Conference 2011 Scaling Up the Impacts of Standards Systems Flight Plan Towards Sustainable Aviation Biofuels in Mexico Alejandro Ríos Galván

2. Overview 1. Introduction 2. Flight Plan 3. Sustainability Standards in Mexico 4. Moving Forward

3. ASA State-owned company, part of the Ministry of Communications and Transport (SCT) Monopoly in aviation fuel supply 60 fuel farms, 10 million liters/day, 2000+ operations

4. Aviation and Climate Change In 2008, the commercial aviation industry produced 677 million tons of CO 2 2% of total man-made emissions Aviation has no real short- term alternative. Last transportation mode to depend of liquid fuels

5. Aviation and Climate Change Renewable Fuels  Efficient airplanes  Operational efficiency Using less fuel Changing the fuel  Lower lifecycle CO 2  No infrastructure modifications  Sustainable Biofuels Sustainable Biofuels are an essential enabler to continued growth Presented to ICAO GIACC/3 February 2009 by Paul Steele on behalf of ACI, CANSO, IATA and ICCAIA

6. Flight Plan The objective of the Flight Plan is to identify and analyze the existing and missing elements in the supply-chain of aviation biofuels Involves all interested stakeholders Looks for: –Focus efforts of civil, governmental, private and research organizations, intent on the production of aviation biofuels –Analyze the legal framework, raw materials availability, refining facilities, supply processes and economic viability –Integrate the talents and knowledge of participating sectors

7. Flight Plan – Organizers and Sponsors National Council for Science and Technology (CONACYT) Center for Strategic Competitive Studies (CEEC) Roundtable on Sustainable Biofuels Boeing, UOP, SAFUG Boeing, UOP, SAFUG Aeropuertos y Servicios Auxiliares

8. Flight Plan Structure Flight Plan Towards Sustainable Aviation Biofuels in Mexico Raw Materials and Extraction Refining and Infrastructure Financing, Legislation, and Logistics Viability of Aviation Biofuels Supply Chain Analysis and Sustainability

9. BiomassTransformationAircraft operations Sustainability Financing Legislation Supply Chain

10. Focus on Sustainability Regulatory framework  Bioenergetics Development Law  Working on guidelines Ministry of the Environment (SEMARNAT)  Developing Mexican Sustainability Standard – voluntary  Based on the principles set forth by the RSB Pilot projects to begin shortly  Timeline for roll-out

11. Moving Forward Feedstock supply is the major bottleneck  Challenge and opportunity Important to avoid bureaucracy  Need for transparency  Use of certification tools  Duplication of efforts – creation of a “manual” that clarifies interconnections Training and communication  Idea of a single “window”  Assure consistency

12. Thank you! Alejandro Ríos Galván Director, Fuel Services Airports and Auxiliary Services ariosg@asa.gob.mx

13. Collaboration Agreement We recognize the importance of Mexico’s taking a pioneering role in helping shape solutions to enhance the environmental performance of commercial aviation through the development of sustainable biofuels and advancing aerospace technology. We agree that the further development of sustainable aviation fuels is important for Mexico’s commercial aviation, economy, and environmental stewardship. Therefore, we the undersigned organizations agree to work collaboratively with other stakeholders as appropriate to advance the development, sustainability, certification, and commercial use of drop-in sustainable aviation biofuels.

14. Collaboration Agreement Our three primary areas of collaboration will be: Encouraging the technical certification of biomass-based synthetic paraffinic kerosene fuels for aviation. Supporting the development and implementation of voluntary standards, to the extent feasible and appropriate based on those of the Roundtable on Sustainable Biofuels, to help develop biofuels derived from environmentally and socially sustainable sources. Assisting in the development of a peer reviewed and open fact- based foundation for policy and commercial decision-making to support technical and sustainability certification goals. In furtherance of these efforts, we intend to coordinate as appropriate with global stakeholders

15. SAFUG The user’s group pledges to consider only renewable fuel sources that:  require minimal land, water and energy to produce  minimize biodiversity impacts  don’t compete with food or fresh water resources  provide socioeconomic value to local communities in cultivation and harvest of feedstocks  Work closely with the Roundtable on Sustainable Biofuels

16. The goal for 2015 is 1% (~ 40 million of liters) For 2020, the ideal is to cover 15% of the demand By 2050, the idea is to have 50% from alternative sources Mexico’s biofuel demand (millions of liters) Mexico´s biofuel demand Mexico’s jetfuel demand growth (millions of liters)

17. 20% Coco & Babassu Feb 2008 50% Jatropha Dic 2008 50% Algae & Jatropha Jan 2009 50% Camelina, Jatropha & Algae Jan 2009 50% Camelina Nov 2009 1st Flight with passengers Apr 2010 F/A-18 Camelina Jun 2010 Dutch AH-64 Apache Algae & used oil Nov 2010 50% Jatropha Apr 2011 27 % Jatropha First demonstration flight with biofuel in Mexico