The Socio-economic and environmental impacts of a biofuels industry in Tanzania

1. The Socio-economic and environmental impactsof a biofuelsindustry inTanzania By Abdallah Mkindi at LVRC on Holloway Road, London N7 6PA 25th July 2007

2. Introduction • The global energy supply is currently based mainly on fossil fuels • This causes serious environmental and other problems • Biofuels have come into the spotlight as a solution, or part of the solution, to the Planet’s energy and climate crisis

3. Introduction Cont’ • Being part of the global village, Tanzania has not left behind in promoting biofuels as an alternative source of energy • Plans are underway to convert millions of hectares of arable land into biofuels . • Justification for the promotion of large scale biofuels is that the country’s demand and price for petroleum products are growing rapidly at a rate of more than 30% per year

4. Introduction cont’ • However, there are concerns that using land to grow fuel instead of food, rising grain prices, and the displacement of rural communities will lead to greater food insecurity in Tanzania • Forests, peatlands, mangroves and protected areas will be cut down, burned, and converted to farmland hence canceling any environmental benefit arising from biofuels • With the National Biosafety Framework in place which allows trials for GM crops, (GM) industry may intend to use this as an opportunity to promote GM biofuels in Tanzania

5. Objective • To critically investigate the socio-economic as well as the environmental impacts that the introduction of a biofuels industry will have in Tanzania in particular the impact on biodiversity, agriculture, food security and sovereignty, livelihoods, markets, land and territory with a specific focus on the impact on smallholder farmers and indigenous communities.

6. Methodology • Data collection • Data were collected in 6 regions of Tanzania which were Dar es Salaam, Tanga, Morogoro, Kilimanjaro, Arusha and Kigoma • Primary Data: • Collected through structured questionnaire

7. Results • Land designation for biofuels production in Tanzania • Population increase at a rate of 3.4% Based on this rapid population growth, land that is claimed to be underutilized will be converted into farmland for crop production in the near future

8. Government policy and initiatives on biofuels • Currently there is no biofuels policy in Tanzania • Biofuels Task Force was established in April 2006 to promote development of the sector and develop legislation to stimulate use of biofuels • Goal of the task force:- Designing biofuels policies and regulations suitable for Tanzanian conditions, Bioenergy Partnership, Promoting applied research and development

9. Proposed policy • The proposed biofuels policy is supposed to include issues of: • Fuel Tax Incentives • CO2 Trading • Clean development mechanism (CDM) • Fuel standards (Blending Mandates)

10. Government Initiatives Targeting Crops for biofuels production • Starch crops such as grains, maize and tubers like cassava • Sugar plants such as sugarcane • Cellulose plants (agriculture residues) • Oil seed crops (like Jatropha, Oil palm)

11. Government initiatives cont’ • Biofuels blend and straight substitution

12. Govt initiatives cont’ • Projection of ethanol production to meet blending requirements

13. Government initiatives • Double sugar cane production between 2005 and 2010. • Use all molasses resulting from the sugar industry’s projected production and the surplus cane for ethanol

14. Govt initiatives • Sites identification suitable for sugar cane production • Ruipa • Ikongo • Mahurunga – Mtwara • Usangu Plains • Malagarasi • The Wami coastal plain • Kilosa • Babati/Hanang

15. Site identification cont

16. Govt initiatives • Potential for biodiesel production to meet blending requirements

17. Land requirement (ha) for B20 blend

18. Investors of Biofuels • D1 oils – UK company investing on Jatropha and sunflower oils • PROKON – A German company investing on Jatropha. Has began a 10000 hectare Jatropha out grower programme in Mpanda • Diligent Energy Systems – A Dutch company promoting Jatropha in Engaruka, Babati, Chalinze, Pangani and Singida • Sun Biofuels – plan to plant 18,000 hectares of Jatropha in Lindi • US – UK group, a Malaysian group and a US based venture fund are exploring more than 100,000hectares of Palm Oil production.

19. Investors of Biofuels • Kakute, TaTedo, FELISA – Local organisations that are also promoting biofuels in Tanzania • These companies are talking of domestic energy security in order to put in favourable policies, but really this will open the doors to export focused companies taking over and massive amount of land being required to meet energy deeds of developed world

20. Facilitator of Biofuels • The government under the Tanzania Investment Centre maintains a database of suitable growing area and facilitate acquisition, permitting and registration process

21. IMPLICATIONS AND IMPACTS OF BIOFUELS • Biofuels will increase pressure on Tanzania food supplies and further erode food sovereignty • Tanzania’s agriculture is predominantly rain-fed. • With increasing occurrence of drought the govt has been forced to ask for food aid to reduce the food shortage • Converting the main sites identified as suitable for growing sugarcane to produce ethanol, land area devoted for food production will be reduced, so eroding local food security and sovereignty and causing shortages

22. Competition for land • Several investors have shown interest to invest on biofuels in the country. • According to Tanzania Investment Centre a Swedish company is looking for 400,000h of land for sugarcane production. Wami basin has been identified • About 1000 small scale rice farmers could be evicted if the project go through

23. Competition for land cont’ • In Ruipa valley, plans are underway to convert the basin into sugarcane plantation. • Over 1000 small scale rice farmers could be affected • Promotion of Jatropha in the so called degraded land in Engaruka and Manyara and rice production in Usangu basin is forcing out the pastoralists out of their land

24. Conflict over use of water • Areas identified suitable for biofuels production are adjacent to rivers which small scale farmers depend on. Large scale biofuels production will divert most of the water into their plantation, hence depriving small scale farmers access to water. • E.g. During peak growing period sugarcane can require up to 10mm of rain equivalent water per day to meet the crop evapotranspiration requirements. • In Usangu basin, 1000 farmers were evicted and the river which is supplying water to their farms was diverted to an investors farm

25. IMPLICATIONS AND IMPACTS OF BIOFUELS cont • More human rights violations related to monoculture expansion • Human rights abuses have been reported from sugar cane plantation • The incidents include very poor working conditions and low wages and health crises due to use of agrochemicals

26. IMPLICATIONS AND IMPACTS OF BIOFUELS • Environmental pollution • Burning the sugarcane pre harvesting is done to get rid of dry leafs and biomass not needed in the production. The soot and other emission from the burning is probably an environmental problem. • Effluent from biofuels processing industries once established if not properly treated could pollute the environment

27. Projected impacts on territory • The farming communities in the identified biofuels potential areas have already established their territories. It is these territories that they have been practicing small-scale agriculture, their culture and traditions since time immemorial. • Large-scale biofuels introduction will force these communities out of their territories • Will plunge them into economic and cultural exploitation • Will undermine their culture, pride, dignity, spirituality, and their ability to remain self-sufficient through wise use of natural resources (land)

28. Projected impacts on biodiversity and rural livelihoods • Monoculture: For large scale biofuels production monocultures of energy-efficient crops (sugar cane, oil palm) may be preferred over crop rotations, which may result in the simplification of agro-ecosystems associated with a decrease in crop and farm biodiversity • GM crops:could result in cross-pollination of wild relatives, thereby affecting biodiversity • Invasive species: Jatropha

29. Impact on rural livelihood • Large-scale, export-oriented production of biofuels in Tanzania would require large-scale monocultures of trees, sugarcane, maize and oil palm • These monocultures will cause rural depopulation and deforestation in Tanzania • The rapidly increasing demand for these crops as a source of biofuels will lead to staggering food prices and causing hunger, malnutrition and impoverishment amongst the poorest rural communities, the destruction of the traditions, cultures, languages and spiritual values of indigenous peoples and rural communities

30. Poor price and condition for the out growers • 1kg of Jatropha for example is sold for 80 Tshs = 0.27 pound. • The biofuels companies sell 1 kg of Jatropha for 2000 Tshs = 0.8 pounds • 1 litre of Jatropha oil is bought for 800 Tshs and sold for 2000Tshs • Transport cost is high

31. Conclusions • The government is fast tracking biofuels initiative and plans to switch over vast areas of land to sugar cane, Jatropha, and palm oil. Fertile land with best access to water are being targeted. • Biofuels production for local demand is just a pretext to allow international investors to target foreign markets

32. Conclusion • The country which is routinely dependent on imported food aid as drought occurs, the policy of producing fuel for export instead of food for Tanzanians will deepen poverty and food insecurity in Tanzania in the years to come.