1. European policies and the mobilisation of biomass for non food Andreas Pilzecker European Commission, Directorate-General for Agriculture

2. 2 Biomass  is the most important source of renewable energy  is the only renewable source of carbon

3. 3 Biomass as C-source  “Natural photosynthesis by chlorophyll generates carbohydrates and oxygen from the abundant raw materials CO2 and H20 using sunlight as the driving force.”  “The stability of CO2 makes economical utilization of CO2 as a feedstock for the synthesis of fuels or chemicals in artificial photochemical systems a formidable challenge.”

4. 4 Biomass (source: DBFZ)

5. 5 The EU aims at  mitigating climate change  increasing security of its energy supply

6. 6 EU climate and energy package  20 (30) % reduction of GHG emissions  20% share of renewable energy  20% increase in energy efficiency By 2020

7. 7 RES-Directive  20% RE share  10% RE in transport  No specific target for bioenergy  Ensure sustainability

8. 8 Where are we?  88 Mtoe of biomass was consumed for energy purposes (primary energy consumption) within the EU-27 in 2006, representing an 8% increase from 2005  In terms of final energy consumption, bionergy accounted for about 7-8 % in 2008

9. 9 Where could we be in future?  Projections using modelling by PRIMES and GreenX estimate that around 165-195 Mtoe of biomass would be used in 2020 to achieve the 20% renewables in primary energy target.  The Environment Energy Agency (EEA) report of 2006 concluded that significant amounts of biomass can be theoretically available to support ambitious renewable energy targets: 235 Mtoe in 2020 is deemed feasible even if strict environmental constraints are applied

10. 10 20% RE target in 2020  Maximum biomass contribution needed: 230 Mtoe  With 15 % of imports, maximum contribution from EU:195 Mtoe  Maximum contribution from agricultural crops: 63 Mtoe  Maximum contribution from other than agricultural biomass132 Mtoe

11. 11 Status of biomass ressource assessments (BEE project)  Reasons behind great disparities in estimated potentials are:  different definitions of concepts of potentials  lack of data on (current) biomass production  different methods of estimating (future) biomass production and availability  different assumptions on system-external factors that influence potentials (such as land use and biomass production for food and fibre purposes)

12. 12

13. 13 Status of biomass ressource assessments (BEE project)  The review of over 70 studies found that total 2020 potentials estimated for the EU-27 differ to a considerable degree: 76 Mtoe - 480 Mtoe  deviations increase over time  the potentials for residues from agriculture and forestry, and organic waste, do not exhibit any clear trend, the deviations in potentials are smaller.  the biomass category mainly responsible is dedicated energy crops

14. 14 EU-25 biomass production potential Sources: Eurostat (2003) / European Environmental Agency (projections)

15. 15 Conclusions  There are some unused sources which are available in the short to medium term.  In the long term, potential is basically fixed – apart from energy crops  Biomass will make a substantial contribution to the RE target  Biomass for energy will have to double, to triple? by 2020  Many uncertanties: dedicated energy crops, forest biomass

16. 16 Concerns about increased use of biomass  Forests: risks of overuse should be assured, all EU Member States have signed up to the Ministerial Conference on the Protection of Forests in Europe (MCPFE)  Sustainaility criteria in the RES-Directive and the Fuel Quality Directive (biofuels and bioliquids)  Sustainability criteria for biomass for other energy?  Competition with food production

17. 17 How to increase the use of biomass?  RES-Directive: National Renewable Energy Action Plans  EU Forestry Action Plan: necessary elements for national action plans.  EU Standing Forestry Committee advocates Member States to develop a strategy on mobilisation and efficient use of wood.  The Commission's Communication on innovative and sustainable forest based industries asks that Member States pay attention to the different uses of biomass when developing the national action plans.  Research, Development and Demonstration  Agriculture/Common Agricultural Policy

18. 18 The Common Agricultural Policy  Since 1992 in a continued reform process  European farmers are free to decide what and how much to grow – and for what purpose  Farmers react to market signals  Prices in the EU are close to world market level (grains, oilseeds), except for sugar

19. 19 Health Check of the CAP Main policy questions:  How to adjust to new market opportunities?  How to simplify the Single Payment Scheme?  How to respond to new challenges?

20. 20 Health Check – Market orientation  Examination whether/to what extent production based (coupled) instruments still needed  Energy crop scheme: Mandatory targets will stimulate demand and high prices encourage production  Obligatory set-a-side: A tool for managing (limiting) supply, original purpose has lost its relevance

21. 21 (Mio ha)2004 (EU-25)2005 (EU-25)2006 (EU-25)2007 (EU-27) Set-aside0,50,91,0 Energy premium0,30,61,32,8 Without specific support0,81,61,40,2 Total1,63,13,74,0 EU: Non-food cropland

22. 22 Health Check: Energy Crop Premium  Energy crop premium to be abolished  Premium proved to be of very limited efficiency (equivalent to 15 €/t rapeseed, current market value is 300 €/t)  Red tape = costs incurred by farmers  Main driver for production is the dynamic market development (due to political targets)

23. 23 Health Check: Compulsory Set-aside  Abolish compulsory set-aside  3.7 million ha of compulsory set-aside, including 0.8 million ha for non-food (2007)  Half of the area will come into production, i.e. 1.5 to 2.0 mio ha.  Neutral for the supply of biomass, demand is main driver

24. 24 Health Check  Starch production aid abolished, for similar reasons as for the energy crop premium  Intervention (obligatory purchase of grains to a guaranteed minimum price) is limited to bread wheat only

25. 25 Health Check  To account for the EU's new challenges made available additional funds for bio-energy under the European Rural Development Fund (EAFRD), an increase of 3.2 billion Euros for 2010-2013.  By mid-2009, Member States had to revise their national rural development plans and programmes taking into account the new challenges, including biomass for energy from agricultural and forestry sources.

26. 26 CAP has set land free (mln ha)

27. 27 The reformed CAP  Provides for low-cost feedstocks  Increases the land base available  Supports actions which increase biomass supply and use in rural areas through the Rural Development policy

28. 28 Food versus Non-Food  EU agriculture’s first role is and will remain to produce food!  The RE target for transport would require about 10-12 mln ha of EU arable land in 2020, much less than previous projections had expected.  Recent CAP reforms bolster the impact on EU land use  By-products soften the impact on third countries’ land use  Share of non land-based biomass sources will increase  There is at least 4 mln ha of uncultivated arable land in the EU

29. 29 Material versus energy use  EU is active in the promotion of both  Control&command and economic instruments are predominant for energy use  Biomass for energy has (will have) sustainability requirements  Bio-based products may offer new functionalities and higher product quality  The cascades concept is not yet exploited

30. 30 Final conclusions  EU promotes and regulates biomass at all stages in the chain: production of feedstocks, production of biofuels, distribution, market  EU uses several types of instruments: Command and Control, economic, collaboration, communication, diffusion  EU sets the framework, Member States formulate national biomass policies