Water for Bioenergy or Food?

1. Water for Bioenergy or Food? Topic Introduction Nadine McCormick International Union for Conservation of Nature www.iucn.org/energy nadine.mccormick@iucn.org

2. Bioenergy context Climate change Volatile oil prices Energy security Rural development

3. Real bioenergy context? Climate change Voltatile oil prices Rural development Energy security

4. 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 Key definitions

5. 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) Biomass in world energy use • Biofuels: 1.5% in 2006, predicted up to 5% in 2030 Source: OECD/IEA, 2008

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

8. World food, feed, fibre and energy production will require a 10% increase in farmland by 2030 (OECD, 2008) Source: Guardian, 22 Nov 2008 http://www.guardian.co.uk/environment/2008/nov/22/food-biofuels

9. Rising food prices? • 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) http://seekingalpha.com/article/116558-global-slowdown-to-hit-low-income-countries-hard-in-2009

10. Access Availability Stability Utilization It’s not just the price

11. Food security assessments ? Based on FAO Bioenergy and Food Security Project Proposal (2006)

12. E.g. Decentralised biodiesel resource centers for improving rural energy services and poverty alleviation (India) Win-win-win-win? • 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)

13. Water/energy relationships Source: International Water Association

14. 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 Comparing water footprints Source: UNESCO-IHE (2008)

15. Different pathways

16. 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 Not all crops are the same! • Feedstock and location make a difference Source: UNESCO-IHE (2008)

17. Biofuel yields of selected feedstock

18. Differing GHG lifecycle emissions

19. 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. Factors for determining impact • Need integrated decision-making

20. 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 Priorities and trade-offs • Need to identify real policy priorities and incentivise accordingly

21. Environmental flows allow allocation through negotiation by stakeholders within the limits of availability, to including for ecosystem services Lessons from agriculture and other sectors? Apply existing tools www.iucn.org/energy

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

23. 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? Key issues to consider