Biofuel Development and Policy in China: Aviation Fuels

1. Biofuel Development and Policyin China: Aviation Fuels Robert Earley Director, Low Carbon Transportation Program The Innovation Center for Energy and Transportation 能源與交通創新中心 September 27, 2011 Hong Kong Roadmap for Sustainability

2. Vision and Mission Statement of iCET • The Innovation Center for Energy and Transportation (iCET) is an independent non-profit, professional organization registered in Beijing, China (2006) and Pasadena, California (2008) as a 501(c)(3). • Our Vision - a healthy, clean world where people and economies can prosper. • Our Mission - to bridge China with the rest of the world and provide decision makers at all levels with urgently needed innovative solutions to solve the energy and climate crises. • Main office: located at the heart of Beijing CBD 2

3. iCET’s Projects • Low Carbon Transportation • China Low Carbon Fuel Standards and Policy • Automotive Fuel Economy Standards and Policy • Green Car Online Evaluation System • New Energy Vehicle Sustainability • Carbon Management Program • Energy and Climate Registry • Promoting California AB 32 GHG • Management experience in China • Clean Energy Project • LED Standards • US-China Sub-national Collaboration

4. China: Vehicle SalesSkyrocketting China’s vehicle sales grew 40% in 2010 to reach 18 million units, and oil imports reached 55.3%. Auto sales may reach 30 million by 2015.

5. Is Electricity the Solution for Vehicles? Life-cycle CO2 Emissions Comparison – Leaf vs. Tiida GHG emission changes range from a 23% reduction to a 28% increase over the use of ICE vehicles Bioelectricity Other Energy Crops SOURCE: Robert Earley,iCET., ELECTRIC VEHICLES IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT IN CHINA , 2011, UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS, Background Paper No.9, CSD19/2011/BP9 5

6. Existing Policy for Sustainable Biofuels: Three “do nots” for non-food biofuels Do not compete with people for food Do not compete for land for human food sources Do not damage ecosystems × Result: The three “do nots” have no specific standards to judge or approve projects Since 2007, no new commercial-scale liquid biofuel projects have been approved ✔

7. Existing Policy for Sustainable Biofuels: • Energy Forest Sustainable Silviculture Guide (Released February, 2011) • State Forestry Administration • Energy Forest Defined: A forest planted to produce feedstock for solid, liquid or gas • bioenergy, including oil-bearing fruit trees, wood energy and starch sources. • Energy Forest Sustainability Defined: Maintain current and future biodiversity, • productivity, ecology and economic and social benefits, while producing biomass • energy sources • Planning of Energy Forests should consider in detail: • seedling production • site selection and soil preparation • tree planting • operation management • energy potential • ecological protection • regional socio-economic development Jatrophacurcas

8. What is marginal non-agricultural land? 8 main marginal land regions in China China has 26.8 million ha of marginal land available for liquid fuel, and 7.5 million ha of low-productivity crop land, which can be used for bio-liquid fuel. Source: Ministry of Agriculture, China, 2008

9. Who will be responsible for Biofuel Sustainability Standards and Policy? China has newly established two new research centers and three standardization committees for non-food biofuels. • National Energy Liquid Biofuel Research and Development Center • National Energy Non-Food Biomass Feedstock Research and Development Center • The National Energy Non-food Biomass Feedstock Energy Industry Standardization Technical Committee • The National Energy Bio-liquid Fuel Conversion Standardization Technical Committee • The National Energy Bio-liquid Fuel Mixing and Distribution Standardization Committee

10. Social, Environmental, Economic Considerations Low Lifecycle GHG Emissions Protection of and benefit to rural communities, rural land rights, and local food security Waste management and use of waste as biofuel feedstock (including use of waste cooking oil and agricultural crop wastes, etc.) Low lifecycle water consumption Reduction of air pollution from biofuel operations Ecosystem conservation and protection of biodiversity Soil health Planning, approval and monitoring of project legality and sustainability Fiscal policy and economic sustainability of biofuel projects Based on the RSB Standard and China’s Domestic Considerations

11. RSB Standards in Public Policy • EU: RSB recently recognized as Method of Demonstrating Compliance • Germany: RSB is recognized as Method of Demonstrating Compliance • Mexico: RSB P&Cs are Basis for Regulatory Framework for Bioenergy • New Zealand: RSB P&Cs are “prescribed” as standard • Washington State: Benchmarking Forest Practices Rules for Mutual Recognition • California: Using RSB P&Cs as starting point for Sustainability Standard • NEXT: China (?)

12. Recommendations for Sustainable Non-Food Biofuel Development in China • Quickly determine priorities for use of biomass, land, and water in China for energy in China. • Establish a Low Carbon, Sustainable Fuel standards system for China • Including a carbon intensity and sustainability reporting system • Establish biofuel sustainability work groups at the central and local government levels • Control biofuel development and guarantee the achievement of non-food biofuel targets • Emphasize sustainable biofuel business model development and increase policy and fiscal support for these fuels

13. Thank You Contact: rjearley@icet.org.cn http://www.icet.org.cn