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FOCUS No 3/09



Bioenergy
for the Poor
Two Sides of a Coin
Contents

                Scope
                Bioenergy and development                                                                         3
                Bioenergy and climate change                                                                      3
                Resource efficiency and sustainable land management                                               4
                Bioenergy and the poor                                                                            5
                Challenges                                                                                        6
                Energy provision for the rural poor                                                               6
                Bioenergy in ecosystems                                                                           6
                Bioenergy production as a livelihood strategy                                                     6


                Policy
                The international framework                                                                       7
                Putting agriculture on the agenda                                                                 7      Fuelwood is still the main energy
                Compensation for ecosystem services                                                               7      source for poor households in rural
                Trade constraints                                                                                 8      Ethiopia despite modern energy.
                                                                                                                         Collecting fuelwood is women’s
                The national level                                                                                9      work. However, the burden is eased
                Cross-sectoral bioenergy policies and land-use planning                                           9      by donkeys, a more gender-neutral
                Diversifying the energy portfolio                                                                 9      animal than other work animals.
                Support small-scale farmers and agricultural labourers                                            9      Valley of Marvels, Eastern Ethiopia.
                Strategic national choices on biofuel development: a decision tree                                9      (Photo: Brigitte Portner)

                Implementation
                Regional rural development and local solutions                                                   11
                Context-specific technologies and stakeholder involvement                                        11
                Multifunctional solutions                                                                        12
                Ensuring long-term viability                                                                     12


                References
                Recommended reading                                                                              13




                InfoResources Focus is published three times     Editorial team:                                         English editing: Ted Wachs
                a year in English, French and Spanish. It is     Alessandra Giuliani, Ruth Wenger and                    Layout:
                available free of charge and may be ordered      Susanne Wymann von Dach.                                Ana María Hintermann-Villamil, webhint.ch
                in pdf format, or as a print publication from
                the address at the right.                        InfoResources Focus No 3/09                             Printing: Schlaefli & Maurer AG
                                                                 was compiled by Brigitte Portner, Annika                Contact:
                InfoResources is a network that supplies and     Salmi, Andreas Kläy, Fani Kakridi Enz,                  InfoResources
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                and international cooperation.                   and Albrecht Ehrensperger (all CDE).                    Tel.: +41 31 910 21 91
                                                                 We will be happy to supply you with more                Fax: +41 31 910 21 54
                                                                 ample information by e-mail                             info@inforesources.ch
                                                                                                                         www.inforesources.ch



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                                                                                   Swiss College of Agriculture SHL




                                                                      © InfoResources, November 2009




2
InfoResources Focus No 3/09
Scope


Bioenergy and development
“Now we don’t have to worry about waking up early in the morning or walk-        Regardless of their success, approaches to
                                                                                 implementing biogas plants for individual
 ing for hours to find wood to store for months”, explains Sharmila Chau-        households have repeatedly been criticised for
 dhary, a woman farmer in Sunsari District Nepal.                                not reaching the poorest of the poor, as people
                                                                                 without access to land and livestock cannot
                                                                                 provide sufficient biomass to run a biogas plant.
Ms. Chaudhary has received guidance from the Biogas Sector Partnership-
                                                                                   Biogas Sector Partnership
Nepal to establish a plant that provides her household with biogas for
                                                                                   www.bspnepal.org.np
cooking and heating. The NGO has developed biogas plants that, besides
gas, also provide slurry which can be used as fertiliser after mixing with
solid residues and composting.                                                   Bioenergy is renewable energy from biomass. Fossil
                                                                                 fuels are not involved as they are not renewable.
                                                                                 Plants absorb solar energy, taking up carbon
Despite such appropriate technologies, traditional bioenergy – fuelwood,         dioxide as well as water and nutrients, which they
                                                                                 store as biomass. Biomass is thus an energy source
charcoal and dung – is still the main source of energy for over 2.5 billion      and a form of carbon storage. Bioenergy may be
people worldwide and indispensable for them to make a living. On the             used directly or indirectly. Bioenergy resources and
                                                                                 use can be grouped into three categories:
other hand, traditional bioenergy use is often inefficient and depletes natu-    • traditional bioenergy that comes directly from
ral resources, thereby deteriorating agricultural production and threaten-         woody biomass, such as fuelwood or charcoal,
                                                                                   and from livestock dung;
ing the livelihoods of the poor.                                                 • biofuels from energy crops such as sugar cane,
                                                                                   oil palm or Jatropha, which are mainly used for
                                                                                   transport;
Greater awareness of the effects of climate change means that today mod-         • bioenergy that comes indirectly from organic
ern bioenergy solutions, such as biogas plants or biofuels, are seen by            by-products and waste, such as slurry and
                                                                                   residues from agriculture or forestry, i.e. straw
many as a way to produce more energy while cutting down greenhouse                 or sawdust.
gas (GHG) emissions and using natural resources more sustainably, thereby
providing livelihoods for the poor.                                               World in Transition – Future Bioenergy
                                                                                  and Sustainable Land Use
                                                                                  www.wbgu.de/wbgu_jg2008_engl.html
The present InfoResources Focus is intended as a reflection on the context
of bioenergy production and use, identifying current challenges and pre-
senting certain aspects to be considered in pro-poor policy development
and implementation.



Bioenergy and climate change
Currently, agriculture, including forestry and land use change, is responsible   Many different studies looked at the amount of
                                                                                 greenhouse gases emitted by agriculture, forestry,
for about 30% of global anthropogenic GHG emissions. Bioenergy, in most          and livestock husbandry with almost as many
cases stemming from agricultural products, is thus also a source of emissions.   differing results. Internationally, the International
                                                                                 Panel on Climate Change (IPCC) report is the most
GHG emissions resulting from bioenergy production and consumption are            acknowledged.
not necessarily lower when compared with fossil fuels. Nevertheless, if sus-
tainably managed, i.e. by rehabilitating degraded lands, bioenergy can help       Fourth Assessment Report
                                                                                  of the International Panel on Climate Change
to mitigate climate change by enhancing the sequestration of carbon in soils      www.ipcc.ch/publications_and_data/
and vegetation and by partly substituting for fossil fuels.                       publications_and_data_reports.htm


Bioenergy production based on agriculture is simultaneously an energy
consumer and an energy provider. Energy produced from biomass requires
inputs, like any other agricultural produce. Labour and energy, in the form
of fertilisers or machinery, are used during the biofuel production process.
In the context of modern industrialised agriculture, bioenergy production
is generally input-intensive, and in many cases energy inputs such as fer-
tilisers or petrol are obtained from fossil fuels, which leads to the emission
of GHG. In developing countries, GHG emissions result mainly from the
combustion of biomass and from clearing of forests and scrublands. Part of
the land in these countries is used for the cultivation of biofuel feedstock.
                                                                                 Most of the documents mentioned in the
                                                                                 margin are annotated in the list of references.




                                                                                                                                                   3
                                                                                                                          InfoResources Focus No 3/09
Global production of energy from biomass                                                    Besides being a GHG emitter, agriculture itself is affected by climate change.
                             1200                                                                                               Higher global temperatures, uncertain and shifting precipitation patterns,
                             1000                                                                                               increased variability, and more extreme events have negative impacts on
        Millons tonnes oil




                             800                                                                                                agricultural production, including cultivation of biomass for energy. Small-
            equivalent




                             600
                                                                                                                                holder farmers in the developing world are the most vulnerable and will
                                                                                                                                need institutional support to adapt to changes.
                             400

                             200

                               0
                                                                                                                                Resource efficiency
                                    1970
                                           1975
                                                  1980
                                                         1985
                                                                1990
                                                                       1995
                                                                              2000
                                                                                      2005
                                                                                             2010
                                                                                                    2015
                                                                                                           2020
                                                                                                                  2025
                                                                                                                         2030




                                     Africa                                          Latin America                              and sustainable land management
                                                                                     and the Caribbean                          Current energy consumption, with its heavy reliance on fossil fuels, far
                                     Western and
                                     Central Asia                                    North America                              exceeds the earth’s biological capacity. In order to provide more people
                                     Asia
                                     and the Pacific                                 Europe                                     with renewable energy while also cutting emissions, use of resources and
                                                                                                                                energy in future must be significantly more efficient in order to satisfy needs
                               1 tonne of oil equivalent is equal to approximately                                              with less resources and thus less energy. Resource efficiency means getting
                               4 m3 of wood. This figure includes the use of black
                               liquor – a by-product from pulping, the separation
                                                                                                                                more from available resources, while energy efficiency means reducing
                               of woody fibres in paper production – as well as                                                 energy demand per unit of activity. To achieve improvements in resource
                               agricultural residues and dung.
                                                                                                                                and energy efficiency, innovations related to the institutional setting and to
                               State of the World’s Forests 2009                                                                technologies are thus essential for a more sustainable energy system.
                               www.fao.org/docrep/011/i0350e/i0350e00.HTM

                                                                                                                                To increase resource efficiency, grey energy needs to be reduced; multi-
                                                                                                                                functional use and resource cascading must be envisaged. Grey energy
                                                                                                                                refers to energy used in the production, processing and transport of bioen-
                                                                                                                                ergy; multifunctional use is defined as using biomass for different applica-
                                                                                                                                tions, while cascading is the use of biomass for subsequent applications, i.e.
                                                                                                                                wood used for timber, then pulp and finally recycled for energy recovery.
                                                                                                                                In Lima, Peru, entrepreneurs have started to buy used edible oil from res-
                               Small-Scale Bioenergy Initiatives:
                               Brief Description and Preliminary Lessons on                                                     taurants and fast food outlets in order to produce biodiesel. The recycled
                               Livelihood Impacts from Case Studies in Asia,                                                    oil is then marketed as fuel to different consumers such as public transport
                               Latin America and Africa
                               www.fao.org/docrep/011/aj991e/aj991e00.htm                                                       companies and individual consumers.

                                                                                                                                The rising demand for energy from biomass is putting pressure on natural
                                                                                                                                resources. The easiest and cheapest way to obtain more biomass for energy
                                                                                                                                production is often to expand the land area used for the production of
                                                                                                                                energy crops. In some places energy crops are replacing other crops, pas-
                               The State of Food and Agriculture 2008.
                               Biofuels: Prospects, Risks and Opportunities                                                     tures, or natural vegetation, which leads to land use changes and competi-
                               www.fao.org/docrep/011/i0100e/i0100e00.htm                                                       tion for resources. Bioenergy production has multiple impacts on soils, water
                                                                                                                                and biodiversity. Large-scale production of energy crops can lead to erosion,
                                                                                                                                to shifts in water regimes or pollution due to agrochemicals. The use of agri-
                                                                                                                                cultural residues for bioenergy can lead to nutrient depletion and decrease of
                               The following global overview of conservation                                                    organic matter. However, if bioenergy is produced in an integrated way, and
                               techniques and approaches provides a
                               comprehensive and extensive range of case studies
                                                                                                                                if principles of sustainable land management are applied, land degradation
                               on sustainable land management practices.                                                        can be stabilised or even reversed and biodiversity increased.
                               Where the Land is Greener
                               www.wocat.net/en/knowledge-base/                                                                 Negative environmental impacts along the supply, distribution and con-
                               documentation-analysis/global-overview-book.html                                                 sumption chain are as important as field-level impacts during the produc-
                                                                                                                                tion and processing stages. Leaking chemical containers, lack of wastewater
                                                                                                                                treatment, and transport over long distances based on petroleum consump-
                                                                                                                                tion also put pressure on natural resources. Proper management along the
                                                                                                                                bioenergy chain, from the field to the end user, is thus necessary to avoid
                                                                                                                                negative impacts and trade-offs with increased bioenergy production.




4
InfoResources Focus No 3/09
Scope


Bioenergy and the poor
Lack of availability and access to affordable energy makes poverty              Low-income food and energy importing countries,
                                                                                where most of the poor spend a great share
entrenched. Today, for example, over 1.6 billion people do not have access      of their income on food and energy, are most
to electricity. Poor households generally use less energy than wealthier        affected by high and volatile prices. The 2008
                                                                                food price peak was partly caused by augmented
households but due to lack of technologies, their use is not efficient. They    biofuel production and high petroleum prices. The
spend approximately 15–30% of their income on energy and several hours          figure shows indices of food and fuel prices for
                                                                                1998 – 2008; the peak is not visible in the figure,
a day gathering fuelwood and dung. Hence, poor households are dis-              as prices subsequently fell.
proportionately affected by high and volatile energy prices. Improving
                                                                                                  Indices of Fuel and Food Prices 1998–2008
access to affordable energy services and efficiency of use free up time and                               250




                                                                                in terms of US dollars)
resources. This can help to break cycles of poverty, as basic human needs                                 200




                                                                                     (2005=100,
such as cooking, lightning and heating as well as income-generating activi-                               150
ties rely on energy.                                                                                      100

                                                                                                           50
Both the rural and the urban poor are bioenergy consumers and produc-




                                                                                                                1998
                                                                                                                       1999
                                                                                                                              2000
                                                                                                                                     2001
                                                                                                                                            2002
                                                                                                                                                   2003
                                                                                                                                                          2004
                                                                                                                                                                 2005
                                                                                                                                                                        2006
                                                                                                                                                                               2007
                                                                                                                                                                                      2008
ers: bioenergy solutions such as biogas from agricultural residues or human
waste management can ease pressure on natural resources and alleviate                                            Food                                        Petroleum
poverty. Rural-urban linkages related to energy are very close. The rural                 Food and Energy Crisis:
poor depend mainly on fuelwood, while the urban poor rely heavily on                      Time to Rethink Development Policy
                                                                                          www.southcentre.org/index.php?
charcoal produced in rural areas. Bioenergy based on local production and                 option=com_content&task=view&id=849
consumption cycles holds great potential for both rural and urban areas.                  &Itemid=1&lang=en


In most developing countries women and children are responsible for             In 2007, over 45 million tonnes of charcoal were
                                                                                produced in the world, with Africa representing the
providing energy from traditional sources. Gender relations and physical        biggest share at 50%. In the last ten years, global
capacities determine access to resources to some extent as well as vulner-      charcoal production has more than doubled,
                                                                                leading in some cases to resource depletion,
ability to poverty. This can have severe consequences on human health and       mainly affecting the rural poor, and to price rises,
safety. On one hand, without access to energy, even basic human needs           mainly affecting the urban poor.
                                                                                Based on FAOSTAT 2009
such as cooking are hindered. Additionally, burning solid fuels on open         faostat.fao.org
fires leads to the death of 1.6 million people annually, women and children
in particular. On the other hand, labourers in bioenergy processing plants
and in the fields need protection measures and training in how to deal with
chemicals and machinery. In addition, alternative farming and processing
practices need to be promoted.

Wealthier households might be in a position to choose their energy carrier,
but the poorest are not in a position to select from different production
and consumption options, as they often lack even the basic necessary
resources such as dung from livestock for biogas plants. Bioenergy produc-
tion can only alleviate poverty if poor people have equitable access to natu-
ral resources and technologies for efficient energy use and are involved in
related decision-making processes and negotiations. Particularly landless       Inforesources Focus 2/06 on Sustainable Energy
                                                                                – Rural Poverty Alleviation provides additional
and female-headed households, which in many societies are among the             information on the linkage between renewable
poorest of the poor, often lack access and tenure rights to resources, nego-    energy and poverty
                                                                                www.inforesources.ch/pdf/focus06_2_e.pdf
tiation skills, and power in their communities.




                                                                                                                                                                                                 5
                                                                                                                                                                        InfoResources Focus No 3/09
Scope


                                                                      Challenges
                Establishing electricity services in rural            Energy provision for the rural poor
                communities, thereby connecting remote areas
                to the grid, unlocks local capital and opens new
                                                                      Without access to energy, poverty will never be eradicated; energy is
                opportunities for small-scale investments.            needed for a broad range of activities such as cooking and heating, trans-
                Energy Services for the Millennium
                                                                      port and communication, to power small enterprises, run water pumps, or
                Development Goals                                     provide light to students to do their homework.
                www.unmillenniumproject.org/documents/
                MP_Energy_Low_Res.pdf
                                                                      The urban as well as the rural poor are energy-poor; unlike the urban poor,
                                                                      however, the rural poor live in remote areas and are spatially dispersed.
                                                                      Providing them with affordable and reliable energy and connecting remote
                                                                      villages to national electric grids are major challenges. Energy planning
                                                                      policies tend to reach these areas only through development of national
                                                                      electric grids and large power plants. It is often forgotten that a significant
                                                                      overall contribution to national energy supply can be made at the local
                                                                      level. Decentralised bioenergy systems can help to reduce energy poverty
                                                                      in remote areas.



                To satisfy increasing food and energy demands,        Bioenergy in ecosystems
                large-scale land acquisitions – or land grabs – are
                on the rise in developing countries to produce food
                                                                      Increased biomass production for bioenergy inevitably leads to land use
                or biofuels. Justification for most of these land     changes. The challenge is to avoid bioenergy production and processing
                grabs is made by the claim that production takes
                place on a country’s marginal land or a small
                                                                      that will negatively impact on the availability and quality of land and water
                proportion of its total suitable land. In reality,    used for food production.
                most such land is already under use, often by
                local people, and pressure on more valuable land
                is growing.                                           Recently, energy crops like Jatropha curcas have raised hopes that marginal
                Land Grab or Development Opportunity?
                                                                      areas could be used for biofuel production without competing with food
                www.fao.org/docrep/011/ak241e/ak241e00.htm            production. But the definition of marginal or idle land is a subject of con-
                                                                      troversy, as land in this category is often used for fuelwood collection by
                                                                      women or as grazing land by pastoralists. Additionally, the diversion of
                                                                      available water to irrigate energy crops can lead to water shortages else-
                                                                      where. Hence, bioenergy planning and policies will not succeed by taking
                                                                      account only of energy aspects. Adopting an ecosystem perspective on
                Biofuels and Ecoagriculture: Can Bioenergy
                Production Enhance Landscape-Scale                    bioenergy planning is a major challenge today.
                Ecosystem Conservation and Rural Livelihoods?
                www.ecoagriculture.org/documents/
                files/doc_282.pdf
                                                                      Bioenergy production as a livelihood strategy
                                                                      Energy produced from biomass needs to be integrated into the livelihood
                                                                      strategies of the poor. Bioenergy production at the farm and village lev-
                                                                      els is usually more promising, as local and regional use of bioenergy is
                                                                      economically more attractive than export, and the potential for poverty
                                                                      alleviation is higher.

                                                                      Revenues from export commodities generally benefit traders and retail-
                International Trade in Biofuels: Good for
                Development? And Good for Environment?                ers, while local producers receive comparatively little. Modern small-scale
                www.iied.org/pubs/pdfs/11068IIED.pdf                  bioenergy production can provide additional income for the poor, improve
                                                                      people’s health, and reduce pressure on natural resources. However, with-
                                                                      out an inclusive institutional setting, the poor will have trouble adopting
                                                                      modern bioenergy production as part of their livelihood strategies.




6
InfoResources Focus No 3/09
Policy


The international framework
Bioenergy production must comply with climate change policies and pro-
                                                                                  World Development Report 2010:
poor development policies. High-income countries have a responsibility            Development and Climate Change
to provide technical and financial assistance in order to foster low-carbon       www.worldbank.org/wdr2010

energy development. Frameworks and regulations at the international and
national levels must provide an environment that clearly couples the differ-
ent interests and opportunities of bioenergy in order to be regulatory but
also provide incentive.



Putting agriculture on the agenda
Climate change and the demand for climate-neutral energy have been              Researchers from the International Food Policy
                                                                                Research Institute recommend three avenues to be
among the main drivers of international interest in bioenergy. If bioenergy     pursued by the negotiators at the Climate Change
is to contribute to a climate-neutral energy supply, agriculture needs to be    Conference in Copenhagen, 2009:
                                                                                • investments in agriculture,
integrated into international directives, as mitigation of climate change       • incentives to reduce emissions, and
must first and foremost involve binding targets to reduce GHGs. Despite         • information and monitoring services.
being major emitters, agriculture, forestry and related land use changes are
                                                                                  Agriculture and Climate Change:
still not included in international agreements on climate change.                 An Agenda for Negotiation in Copenhagen
                                                                                  www.ifpri.org/sites/default/files/
                                                                                  publications/focus16.pdf
Farmers are the main land managers worldwide. International agree-
ments will have to ensure that agriculture is not just blamed for being a
carbon emitter; there is a need to ensure that sustainable land manage-
ment, including bioenergy production, contributes significantly to climate
change mitigation and to investments in rural communities. Agricultural
practices that enhance agricultural productivity and support ecosystems
and their services, such as carbon sequestration in soils and avoidance of
deforestation, i.e. for biofuel crops, need to be included in international
climate change mitigation and adaptation policies and programmes.



Compensation for ecosystem services
The increasing attention being given to bioenergy is accompanied by a           Markets associated with ecosystem services are
                                                                                on the rise. But criticism has been voiced that the
growing number of markets for ecosystem services, as both are seen as           poor who provide these services are not the ones
a way to reduce GHG emissions related to agriculture. For many small-           who get the financial benefit, as participation in
                                                                                these markets is also linked to power structures.
scale farmers, these mechanisms could constitute an additional livelihood       Additionally, there is a general lack of capacity
opportunity. Compensation for services provided by agricultural ecosys-         to implement projects consistently, as well as
                                                                                a lack of internationally agreed and legitimate
tems includes direct public and private payments, tax incentives, and cer-      rules and principles. Institutional arrangements
tification schemes.                                                             for payments for ecosystem services need to
                                                                                be flexible in order to adapt to different socio-
                                                                                ecological systems.
While most of these tools are applied nationally, certification schemes have
also been used internationally, for example for coffee or wood. Certifica-        Building Institutions to Trade Ecosystem
                                                                                  Services: Marketing Forest Carbon in Mexico
tion schemes for biofuels are currently under discussion but are still being      doi:10.1016/j.worlddev.2007.09.010
elaborated and must be agreed upon at the international level. Additionally,
they need to comply with World Trade Organization (WTO) regulations             The Roundtable on Sustainable Biofuels is currently
                                                                                developing principles and criteria for sustainable
as well as sustainability standards, including labour rights for agricultural   biofuels. It is an international initiative bringing
workers and environmental criteria such as biodiversity conservation. Sus-      together farmers, companies, non-governmental
                                                                                organizations, experts, governments, and inter-
tainability standards and certification schemes must also include trade-offs    governmental agencies concerned with ensuring the
between sectors, and the methodologies applied need to be comparative,          sustainability of biofuels production and processing.
credible and affordable in order to be implemented and followed.
                                                                                  Roundtable on Sustainable Biofuels
                                                                                  http://cgse.epfl.ch/page65660-en.html




                                                                                                                                                  7
                                                                                                                         InfoResources Focus No 3/09
Trade constraints
                Today, international trade in bioenergy is in its     Bioenergy trade volume will increase in future despite negative environ-
                initial stage. Most biomass traded is currently
                non-bioenergy products. The most internationally
                                                                      mental impacts due to GHG emissions from transportation. Favouring
                traded bioenergy products are: vegetable oils (62%    domestic markets over international markets thus has a double benefit:
                of palm oil is traded, 15% of rapeseed oil), wood
                pellets (25%), ethanol (8.5% of world production is
                                                                      reduced environmental impact during transport, and bioenergy produc-
                traded), charcoal (2.2%) and fuelwood (0.2%).         tion and trade that are more likely to be pro-poor. Consequently, efforts to
                                                                      promote bioenergy trade ideally centre on local and regional remedies.
                Risk Governance Guidelines for Bioenergy Policies
                www.irgc.org/IMG/pdf/
                IRGC_PB_Bioenergy_WEB-2.pdf                           Today, market distortions disproportionately affect developing countries
                                                                      and are even reinforced by the emergence of biofuels, as they are mainly
                                                                      produced in the South. Currently, the global North subsidises agriculture
                                                                      with approximately USD 300 billion per year. International organisations,
                                                                      such as the WTO and the United Nations Conference on Trade and Devel-
                                                                      opment (UNCTAD), have no common policy for dealing with bioenergy
                                                                      flows, subsidies, taxes, import barriers and investment. Trade policies on
                                                                      bioenergy have to be harmonised, be pro-poor, and ensure that produc-
                                                                      tion, processing, trade and consumption of bioenergy are sustainable.




8
InfoResources Focus No 3/09
Policy


The national level
Cross-sectoral bioenergy policies
and land-use planning
The development of effective, sustainable and efficient policies requires the     Policy and decision-makers need to understand
                                                                                  the interactions between the various policy
consideration of many different issues and trade-offs. Bioenergy strategies       domains and levels related to bioenergy. They
have to be linked to agriculture, energy, rural development, environment          need to assure that food security considerations
                                                                                  are given priority. Trade in energy and agriculture,
and food strategies. Careful resource and land use planning is necessary          in particular, is marked by wide disparities. In
and must adopt a consultative approach involving all concerned stakehold-         the case of energy, for example, a relatively
                                                                                  small number of countries dominate exports,
ers. Besides current policies that aim to replace fossil fuel with biofuels for   while most countries import most – and, in some
transport, governments must focus on production and consumption pat-              cases, all – of the fuels they consume. Diversified
                                                                                  energy portfolios would thus also have benefits
terns, as these are also potential fossil fuel consumers.                         at the national level and ideally also contribute to
                                                                                  sustainable development.

                                                                                    Sustainable Bioenergy:
Diversifying the energy portfolio                                                   A Framework for Decision Makers
Investments in agriculture, energy and infrastructure such as irrigation,           http://esa.un.org/un-energy/
                                                                                    pdf/susdev.Biofuels.FAO.pdf
extension services, and research, as well as in innovative approaches and
technologies, can significantly improve energy and resource efficiency.
National energy diversification, away from fossil fuels and towards renew-
able energy sources such as bioenergy, increases a country’s energy inde-
pendence. Stakeholders need access to information and clear incentives to
limit emissions and to invest in bioenergy solutions. Diversifying the energy
portfolio reduces overall risk and increases opportunities for private invest-
ment. In addition, approaches that produce surplus energy which can be
fed into the national grid should be given priority.



Support for small-scale farmers
and agricultural labourers
Pro-poor bioenergy markets need to pay specific attention to institutional        Land titles and community rights to self-
                                                                                  determination can enable farmers to earn an
arrangements: small-scale farmers and agricultural labourers must not be          equitable share of revenues from biofuel production.
disadvantaged by the international value chain or by contracts with bioen-        Whenever a bioenergy project is proposed, informed
                                                                                  decision-making and local participation is crucial.
ergy plants. Bioenergy producers and consumers need to have access to             For this to happen, however, small-scale farmers
energy markets and fair tariffs. Along with linking of sectoral strategies,       need technical assistance, access to credit, fair
                                                                                  contracts, and support to establish cooperatives. A
coordination and coupling between the different institutions and organi-          favourable institutional setting must be provided by
sations involved enhances the effectiveness of bioenergy systems in rela-         national policy.
tion to poverty reduction, energy, and resource efficiency. Strengthened
                                                                                    Biofuels and Ecoagriculture: Can Bioenergy
institutional capacities, investment in research and properly defined tasks         Production Enhance Landscape-Scale
among involved stakeholders will contribute to knowledge exchange and               Ecosystem Conservation and Rural Livelihoods?
                                                                                    www.ecoagriculture.org/documents/
appropriate implementation of technologies.                                         files/doc_282.pdf




Strategic national choices on biofuel development:
a decision tree
Decisions related to the implementation of bioenergy projects require
consideration of different impacts and trade-offs by decision-makers. The
decision tree below can guide the processes needed on the way to making
final choices about national biofuel development.




                                                                                                                                                   9
                                                                                                                          InfoResources Focus No 3/09
Policy


                                                                                 Identify clear set of policy goals

                                                                                    Rural               Export            Climate change
                                                       Energy security?
                                                                                development?         development             mitigation



                                                                                    Choosing crops for biofuels
                                                             Are biophysical conditions (eg rainfall, available land) and technology
                                                            (eg fertilisers, processing capability) suitable for your chosen feedstock?

                                                              Yes


                                                                                       Food security analysis
                                                               Is it possible to assure food security alongside biofuel production?

                                                                                           Look at national food availability (production and imports)
                                                              Yes           Not sure               and access to food for poorer social groups

                                                                                      Environmental analysis
                                                                        Is it possible to assure environmental protection
                                                                               is part of biofuel production and use?
                                                                                                Look at issues such as land and water use, soil
                                                              Yes           Not sure          and water impacts, and greenhouse gas emissions


                                                                                             Social analysis
                                                       Is it possible to assure positive social outcomes through biofuel production and use?

                                                                                                Look at issues such as large-scale vs small-scale
                                                              Yes           Not sure            production, land rights and labour conditions


                                                                                       Economic analysis
                                                        Are biofuels the most cost-effective means of achieving the desired policy goals?

                                                                                           Look at costs relative to, for example, other energy sources,
                                                              Yes           Not sure               other ways of promoting rural development


                                                                            Proceed with biofuel development




                                                                                                                                                    Look at market options
                                                         Can biofuels out-compete                          Do international competitiveness,
                                                        alternatives for local energy                          market access and trade
                                                                  supplies                                    preferences allow export?

                                                              Yes                                                               Yes


                                                         Production for local               Production             Production for regional/
                                                          and remote areas              for national market          international market



                Source of figure: Biofuels:                         Strategic policy support demands long-term commitment
                Making Tough Choices                                               and coherence among sectors
                www.iied.org/pubs/pdfs/17032IIED.pdf




10
InfoResources Focus No 3/09
Implementation


Regional rural development
and local solutions
There is not a single solution to the three challenges mentioned on page 6.
All of them, however, are concerned with meeting local place-based needs
and considering the context. Bioenergy production must provide poor
people with affordable and accessible low-carbon energy – over the long
run and in sufficient quantities and quality without degrading ecosystems
and undermining food security. But providing bioenergy alone will not
solve the problem of poverty; development activities will not take place if
communities can light only one bulb per shelter.



Context-specific technologies
and stakeholder involvement
On the Pacific Islands the coconut tree plays a vital role in local communi-
ties. Removing and drying the coconut kernel to make “copra” has been a
primary source of income for generations. As a response to highly volatile
prices for copra and coconut oil and the high dependence on imported
petroleum, the islanders started to search for alternatives such as produc-
tion diversification and the transfer of processing units to production sites.
In Vanuatu, coconut farmers and copra producers work together in coop-
                                                                                  Biofuel Energy from Coconut in the Pacific
eration to find feasible and sustainable opportunities to use coconut oil to      Island
run vehicles and generators.                                                      www.riaed.net/IMG/pdf/Thesis_Copra_Biofuel.pdf



Before implementing bioenergy projects, the current status of energy sup-
ply has to be assessed and understood. It is of crucial importance for the
project design to know local energy needs: who uses energy and what
type of energy is in use; how energy is produced and delivered to the
                                                                                  Implementing Sustainable Bioenergy
users and how much they pay; and how much they would and could pay                Production. A Compilation of Tools
for a dependable bioenergy service. The best technology is the one that is        and Approaches
                                                                                  http://data.iucn.org/dbtw-wpd/
selected according to the needs of the local population, and the availability     edocs/2008-057.pdf
and type of bioenergy.

It is not always the newest technology that is best suited, and many large-
scale applications might be too expensive for rural households. Neverthe-
less, financial considerations have to take account of the lifespan of a tech-
nology – in some cases investment costs might be relatively high, but will
be repaid after a number of years. For poor households to afford bioenergy,
micro-credits and other financial incentives will have to be considered.

Community involvement is thus central to successful implementation of            A gender perspective in planning bioenergy
                                                                                 projects ensures that the concerns and needs of
small-scale bioenergy projects, as technologies such as biogas combus-           women and men are taken into account. Women’s
tion using agricultural residues, or farming practices that explicitly include   involvement is of particular importance, as women
                                                                                 spend three times as much time transporting
energy production besides food and feed, generally face barriers when            fuel and water as men and regularly carry four
introduced. Particular attention must be given to women, as they are most        times as much as men in volume. In some cases
                                                                                 biogas systems have increased women’s workload
often responsible for a household’s energy provision. Additionally, trans-       because of the additional biomass and water that
parency in negotiations must be ensured in order to benefit stakeholders         has to be carried.
and communities equally and to ensure that existing land and property
                                                                                  Gender and Bioenergy
rights are respected.                                                             www.genderandenvironment.org/admin/
                                                                                  admin_biblioteca/documentos/
                                                                                  Factsheet%20BioEnergy.pdf




                                                                                                                                         11
                                                                                                                       InfoResources Focus No 3/09
Implementation


                                                                       Multifunctional solutions
                                                                       In the Tanga Region, on the coast of Tanzania, Sisal is the most impor-
                                                                       tant cash crop for small-scale farmers. Farmers intercrop sisal mainly in
                                                                       outgrower schemes, and the products, such as ropes, carpets or clothing,
                                                                       are sold on national and the international markets. Since planting and
                                                                       harvesting takes place all year, there is little vulnerability to environmental
                                                                       shocks, giving farmers financial security. However, with current production
                Small-Scale Bioenergy Initiatives: Brief
                Description and Preliminary Lessons on                 methods only 4% of the plant can be used as fibre. Sisal companies have
                Livelihood Impacts from Case Studies in Asia,          thus started to use the residues for biogas production. The biogas is used to
                Latin America and Africa
                ftp://ftp.fao.org/docrep/fao/                          run electricity generators in production plants and excess electricity is sup-
                011/aj991e/aj991e.pdf                                  plied to farmers’ homes, schools and hospitals.

                                                                       Bioenergy production that acknowledges the multiple uses, functions and
                                                                       services of ecosystems offers a number of opportunities, including improved
                                                                       livelihoods and reduced land degradation. Bioenergy production based on
                                                                       the use of agricultural residues or organic waste is an option that does not
                                                                       necessarily require a change in the production system but integrates food,
                                                                       feed, fibre and fuel with sustainable land management practices.

                                                                       Agroforestry and inter-cropping, for example, are sustainable land manage-
                                                                       ment options for diversifying the agricultural production system without
                                                                       competing with food supplies. Many of these integrated approaches result
                                                                       in by-products, as shown example above. Additionally, food-energy systems
                                                                       are a very low-cost climate change mitigation option: perennial plants with
                                                                       deep root systems and cultivation systems that leave agricultural residues
                                                                       reduce water use and store carbon in the soils and the biomass.



                                                                       Ensuring long-term viability
                                                                       Energy plants require maintenance in order to provide energy continuously.
                                                                       On the one hand, people have to be trained to maintain bioenergy service
                                                                       over the long run at a sustained quality and quantity. On the other hand,
                                                                       consumers have to agree to pay a fair price for this service. Depending on the
                                                                       amount and type of energy produced, surplus might be fed into a regional
                                                                       or national grid (i.e. electricity), or a marketing concept for by-products may
                                                                       need to be elaborated, for example for clothing made of sisal.

                                                                       However, for bioenergy production to be competitive, economies of scale
                                                                       and stable energy prices are required. The former requires cooperation at
                “Outgrower scheme” is a commonly used term             the local level: producer organisations, smallholder cooperatives or out-
                for contract farming. It implies the availability of
                credit, timely supply of inputs, knowledge transfer,
                                                                       grower schemes can facilitate market access by small-scale farmers. The
                provision of extension services and access to a        latter calls for a credible international commitment to reduce fossil fuel
                ready market. The same principles can also be
                applied to non-farm bioenergy production such as
                                                                       consumption and to invest in renewable energies.
                human waste management.
                                                                       If rights and duties along the bioenergy value chain have been agreed on,
                The State of Food and Agriculture 2008.
                Biofuels: Prospects, Risks and Opportunities           bioenergy production has the potential to lead to the development of a
                ftp://ftp.fao.org/docrep/fao/011/                      private sector, stimulate job creation, and offer new climate-neutral energy
                i0100e/i0100e.pdf
                                                                       opportunities without depleting natural resources or putting people’s live-
                                                                       lihoods in danger.




12
InfoResources Focus No 3/09
References


Recommended reading
The following list features a documented and targeted selection of print documents and Internet sites of relevance to “Bioenergy for the Poor:
Two Sides of a Coin”. The documents are listed by title in alphabetical order. All are available online (accessed on 2 November 2009).

                 International Food Policy Research Institute. 2009
     Policy      Agriculture and Climate Change: An Agenda for Negotiation in Copenhagen
                 2020 Focus 16. www.ifpri.org/sites/default/files/focus16_01_0.pdf
                 A set of policy briefs by various contributors, who share their views on key points concerning why agriculture has to be
                 carefully included in the international climate change negotiations. The brief provides science and technology options,
                 concluding with a strong plea for agriculture and for ongoing negotiations to address climate change, which will provide
                 a unique opportunity to combine low-cost mitigation and essential adaptation outcomes with poverty reduction.

                 Aurélie Leplus. 2003
  Case studies   Biofuel Energy from Coconut in the Pacific Island
                 The Lory cooperative pilot project. MSc Thesis. Wageningen: Wageningen Agricultural University.
                 www.riaed.net/IMG/pdf/Thesis_Copra_Biofuel.pdf
                 The coconut is an abundant and valuable source in the Pacific region and its products and by-products have an
                 important role in the islands’ economies. The study analyses coconut oil production at the Lory cooperative pilot
                 project in Vanuatu for fuel use and its potential as a sustainable energy carrier at the village level. Coconut fuel has
                 the potential to offset imported petroleum and to improve revenues for the local population.

                 Jeffrey C. Milder, Jeffrey A. McNeely, Seth A. Shames and Sara J. Scherr. 2008
     Policy      Biofuels and Ecoagriculture:
                 Can Bioenergy Production Enhance Landscape-Scale Ecosystem Conservation and Rural Livelihoods?
                 International Journal of Agricultural Sustainability 6(2):105–121. doi:10.3763/ijas.2008.0344
                 www.ecoagriculture.org/documents/files/doc_282.pdf
                 Ecoagriculture, an approach with the threefold aim of biodiversity and ecosystem services conservation, sustainable
                 agriculture production and viable local livelihoods, is used as a framework for evaluation of the effects of biofuel
                 production on multiple landscape variables. The recommendations include i.a. the incorporation of biofuels into
                 multifunctional agricultural landscapes in the context of smallholder production for local use, as well as the need
                 for well-designed national biofuel programmes and further research.

                 Sonja Vermeulen, Annie Dufey and Bill Vorley. 2008
     Policy      Biofuels: Making Tough Choices
                 Sustainable Development Opinion. London: International Institute for Environment and Development
                 www.iied.org/pubs/pdfs/17032IIED.pdf
                 National biofuel policies may strive for different goals, such as export or rural development, energy security or
                 climate mitigation. At the same time, their design is unavoidably linked to negotiations between governments and
                 other interest groups and requires trade-offs. This short publication introduces the “decision tree” as a tool to sup-
                 port the complex process of decision-making.

  Case studies   Biogas Sector Partnership Nepal
   Overview      www.bspnepal.org.np
                 Operating as the implementing agency for the Biogas Support Programme Nepal (BSP), the Biogas Sector Partner-
                 ship specializes in the development and dissemination of biogas plants as a means of protecting the environment
                 while improving livelihoods and addressing social and sustainability issues. Its activities include technical and
                 capacity development as well as the development of partnerships and fundraising, while keeping an eye on socio-
                 economic and gender questions. In its website, the BSP, provides ample information about the project itself as well
                 as technical information, success stories and a list of publications.

                 Esteve Corbera and Katrina Brown. 2008
  Case studies   Building Institutions to Trade Ecosystem Services: Marketing Forest Carbon in Mexico
                 World Development 36(10): 1956–1979. doi:10.1016/j.worlddev.2007.09.010




                                                                                                                                             13
                                                                                                                            InfoResources Focus No 3/09
This case study from Mexico analyses the development of markets for forest carbon in the context of the Clean
                         Development Mechanism (CDM) of the Kyoto Protocol. It concludes that several challenges lie ahead and identifies
                         a lack of support for adequate institutional arrangements, insufficient capacities for the implementation of such
                         projects, and lack of integration between the institutions concerned as the main problems.

                         Sijay Modi, Susan McDade, Dominique Lallement and Jamal Saghir. 2006
           Policy        Energy Services for the Millennium Development Goals
         Overview        UN Millennium Project, UNDP, Energy Sector Management Assistance Programme, and the World Bank
                         www.unmillenniumproject.org/documents/MP_Energy_Low_Res.pdf
                         There is no MDG explicitly related to energy, but greater access to sustainable and affordable energy services is a condi-
                         tion sine qua non for the achievement of all the MDGs. This publication firstly highlights the linkages between energy
                         services and each Goal, keeping an eye on the different roles and needs of men and women and on different condi-
                         tions in urban and rural areas. It provides insight into the main operational challenges in provision of these services.

                         South Centre. 2008
           Policy        Food and Energy Crisis: Time to Rethink Development Policy
                         Reflections from the High Level North-South Dialogue on Food and Energy Security
                         www.southcentre.org/index2.php?option=com_docman&task=doc_view&gid=1062&Itemid=69
                         Aiming to raise awareness about linkages between food security, energy security and climate change, and to pro-
                         mote discussions about possible solutions, the South Centre and the Permanent Mission of Indonesia in Geneva
                         organised, on 17 June 2008, a High Level Dialogue on Food Security and Energy Security. The publication particu-
                         larly emphasises a Southern perspective and summarises the discussion of the Dialogue and contains reflections
                         regarding the key messages that emerged from it.

                         Intergovernmental Panel on Climate Change. 2007
           Policy        Fourth Assessment Report: Climate Change 2007 (AR4)
         Overview        www.ipcc.ch/publications_and_data/publications_and_data_reports.htm
                         The Intergovernmental Panel on Climate Change (IPCC) was jointly established in 1988 by the World Meteoro-
                         logical Organization (WMO) and the United Nations Environment Programme (UNEP), with a mandate to assess
                         scientific information related to climate change, to evaluate the environmental and socio-economic consequences
                         of climate change, and to formulate realistic response strategies. Since its establishment, the IPCC has produced a
                         series of Assessment Reports.

                         Ariana Araujo and Andrea Quesada-Aguilar in collaboration with Lorena Aguilar, Andrea Athanas and Nadine McCormick. 2007
           Policy        Gender and Bioenergy
                         www.genderandenvironment.org/admin/admin_biblioteca/documentos/Factsheet%20BioEnergy.pdf
                         This fact sheet illustrates the differences in men’s and women’s energy needs, as they arise from different social,
                         cultural and economic situations. As a result, inappropriate policies can increase women’s vulnerability and poverty
                         for them and their families. The paper provides concrete recommendations for the inclusion of a gender perspec-
                         tive into bioenergy policies and practices. These include, among other things, women’s access to information, to
                         training programmes, and to credit and to carbon fund markets.

                         International Union for Conservation of Nature. 2009
       Instruments       Implementing Sustainable Bioenergy Production: A Compilation of Tools and Approaches
                         http://data.iucn.org/dbtw-wpd/edocs/2008-057.pdf
                         Sustainable production is a prerequisite for bioenergy to achieve positive results in terms of environmental man-
                         agement and livelihood development. The authors provide examples of existing principles, frameworks, tools and
                         approaches as well as key recommendations for reducing and managing risks related to inappropriate policies.

                         Annie Dufey. 2007
           Policy        International Trade in Biofuels: Good for Development? And Good for Environment?
                         www.iied.org/pubs/pdfs/11068IIED.pdf
                         International production and trade in biofuels is expanding rapidly and may quadruple in the next twenty years. But
                         many of the policies related to biofuels are not adequate to deal with the complexity of the issue and to ensure the




14
InfoResources Focus No 3/09
References


               sustainable development of biofuel production and markets. The positive impacts expected by this expansion may
               therefore be accompanied by important negative side-effects such as increased poverty, environmental damage, and
               food shortages. The author highlights the trends in international biofuel trade and explains the linkages between
               biofuels and sustainable development in terms of environmental conservation and social development.

               International Institute for Environment and Development and Food and Agriculture Organization of the United Nations. 2009
 Overview      Land Grab or Development Opportunity? Agricultural Investment and International Land Deals in Africa
   Policy      www.fao.org/docrep/011/ak241e/ak241e00.htm
               Independent of the reasons that lead to land grabs, they are a constantly increasing phenomenon that contains
               both risks and development opportunities for rural populations in recipient countries. The present publication draws
               preliminary conclusions about the possible impacts of land grabs and provides recommendations for recipient gov-
               ernments as well as investors and international development agencies.

               International Risk Governance Council. 2008
   Policy      Risk Governance Guidelines for Bioenergy Policies
 Overview      Geneva: International Risk Governance Council. www.irgc.org/IMG/pdf/IRGC_PB_Bioenergy_WEB-2.pdf
               The Council’s policy brief provides the reader with information about recent bioenergy developments and policies
               and shows up risks and opportunities related to economic, social, structural and environmental issues. Among its
               recommendations, the Council suggests the use of Life-Cycle and Environmental Impact Assessments (LCAs and
               EIAs) in order to ensure an adequately broad scope for policy-making. For developing countries, it recommends the
               production and use of bioenergy, primarily at the local level.

Instruments    Roundtable on Sustainable Biofuels
               http://cgse.epfl.ch/page65660.html
               The Roundtable on Sustainable Biofuels (RSB) is an international initiative bringing together stakeholders from
               various sectors and institutions concerned with ensuring the sustainability of biofuels production and processing.
               By means of a large concertation process among partners and networks, it has established a list of principles and
               criteria for sustainable biofuels and is actually working on the creation of standards. The RSB also organizes meet-
               ings, teleconferences and online discussions.

               Food and Agriculture Organization and Policy Innovation Systems for Clean Energy Security. 2009
Case studies   Small-Scale Bioenergy Initiatives: Brief Description and Preliminary Lessons on Livelihood
               Impacts from Case Studies in Asia, Latin America and Africa
               ftp://ftp.fao.org/docrep/fao/011/aj991e/aj991e.pdf
               15 case studies from 12 countries in Latin America, Africa and Asia illustrate the way diverse local bioenergy initiatives can
               affect rural livelihoods in various contexts. The studies were conducted using a market systems perspective, which takes
               account of the enabling environment, market chain actors, and linkages and supporting services. The publication analy-
               ses and compares the case studies, and provides lessons and conclusions as well as recommendations for further work.

               Food and Agriculture Organization of the United Nations. 2009
 Overview      State of the World’s Forests
               www.fao.org/docrep/011/i0350e/i0350e00.HTM
               This year’s Outlook considers the forest and forestry prospects at the sub-regional, regional and global levels. It fore-
               sees that the global demand for wood and wood products will rise, requiring a balance between production and the
               maintenance of environmental services such as clean air and water, climate change mitigation and landscape conserva-
               tion. Forest sector institutions, whose role and interactions are undergoing important changes, will have to consolidate
               and avoid fragmentation, while the science and technology sectors will have to keep pace with rapid change.

               UN-Energy. 2007
   Policy      Sustainable Bioenergy: A Framework for Decision Makers
               http://esa.un.org/un-energy/pdf/susdev.Biofuels.FAO.pdf
               Bioenergy production can be an efficient remedy for mitigating environmental degradation and climate change, as
               well as dependence on an increasingly unstable world oil market. However, to fulfill those goals, its production must
               be ecologically, socially and economically sustainable. With a special focus on liquid biofuels, this publication presents




                                                                                                                                           15
                                                                                                                          InfoResources Focus No 3/09
References


                         nine key sustainability issues and explains potential benefits and trade-offs at both the national and international levels.
                         Furthermore, it assists policy and decision-makers by putting at their disposal a brief framework for action.

                         Food and Agriculture Organization of the United Nations. 2008
           Policy        The State of Food and Agriculture 2008: Biofuels: Prospects, Risks and Opportunities
                         www.fao.org/docrep/011/i0100e/i0100e00.htm
                         FAO’s 2008 report on the state of food and agriculture focuses on the current debate on biofuels. It examines current
                         policies as well as those that will be necessary to address the potentially fateful impacts that unsustainable produc-
                         tion and use of biofuels can have on the environment, food security and the poor. In its key messages it concludes,
                         among other things, that the impacts of biofuel development will be felt by all countries through their agricultural
                         markets, and that criteria for sustainable production, without being an absolute panacea, can help to improve the
                         environmental footprint of biofuels.

                         Hanspeter Liniger and William Critchley (editors). 2007
       Instruments       Where the Land is Greener
                         Case studies and analysis of soil and water conservation initiatives worldwide. World Overview of Conservation Approaches
                         and Technologies (WOCAT). www.wocat.net/en/knowledge-base/documentation-analysis/global-overview-book.html
                         The World Overview of Conservation Approaches and Technologies (WOCAT) is a network of soil and water conser-
                         vation specialists from all over the world. ‘Where the Land is Greener’ synthesises the experience they have gained
                         since WOCAT was initiated in 1992. The book is a stimulus to apply sustainable land management on all farmland,
                         pastoral areas, and forestland. It proposes a broad range of technologies and approaches for areas where the land
                         is not yet ‘green enough’.

                         The World Bank, 2009
           Policy        World Development Report. 2010: Development and Climate Change
         Overview        www.worldbank.org/wdr2010
                         The authors of the World Development Report 2010 argue that a climate-smart world is within reach if we act now
                         to tackle the substantial inertia in the climate, in infrastructure, and in behaviour and institutions; if we act together
                         to reconcile needed growth with prudent and affordable development choices; and if we act differently by investing
                         in the needed energy revolution and taking the steps required to adapt to a rapidly changing planet.

                         German Advisory Council on Global Change (WBGU). 2009
           Policy        World in Transition – Future Bioenergy and Sustainable Land Use
                         www.wbgu.de/wbgu_jg2008_en.pdf
                         Bioenergy policy is designed within a difficult context, characterized by the complexity of the issue, scientific uncer-
                         tainty, and multiplicity of interests. Yet the right policy can generate positive and sustainable results. The WGBU analy-
                         sis presents strategies showing how bioenergy can become part of sustainable energy systems in industrialised, newly
                         industrialising, and developing countries. It proposes a global regulatory framework for sustainable policies that aim
                         to help mitigate climate change and overcome energy poverty while minimising risks such as loss of biodiversity.




                         InfoResources services will cease at the end of 2009
                         Dear readers,
                         sadly we have to inform you that all InfoResources services will cease at the end of 2009. In the context of an internal reorientation
                         process, our donor – the Swiss Agency for Development and Cooperation (SDC) – has decided to discontinue its financial support.
                         Since 2003 we have been able to supply you with InfoResources News, InfoResources Focus, InfoResources Trends and the InfoResources
                         Research Service. For us, these were interesting and challenging tasks. We hope that our services provided you with interesting and useful
                         inputs to your daily work. Your comments are welcome; please address them to: info@inforesources.ch.
                         Thank you for your interest in our products.
                         Your InfoResources Team:
                         Jane Carter, Monika Egli, Ulla Gämperli, Alessandra Giuliani, Felix Hintermann, Fani Kakridi Enz, Andreas Kläy, Hans Schaltenbrand,
                         Bettina Stäubli, Ruth Wenger, Susanne Wymann von Dach, and our partners CETRAD (Kenya), IC-Delegations (Andes, Bangladesh, India
                         and Mali) and SIMAS (Nicaragua).




16
InfoResources Focus No 3/09

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Bioenergy for the Poor

  • 1. FOCUS No 3/09 Bioenergy for the Poor Two Sides of a Coin
  • 2. Contents Scope Bioenergy and development 3 Bioenergy and climate change 3 Resource efficiency and sustainable land management 4 Bioenergy and the poor 5 Challenges 6 Energy provision for the rural poor 6 Bioenergy in ecosystems 6 Bioenergy production as a livelihood strategy 6 Policy The international framework 7 Putting agriculture on the agenda 7 Fuelwood is still the main energy Compensation for ecosystem services 7 source for poor households in rural Trade constraints 8 Ethiopia despite modern energy. Collecting fuelwood is women’s The national level 9 work. However, the burden is eased Cross-sectoral bioenergy policies and land-use planning 9 by donkeys, a more gender-neutral Diversifying the energy portfolio 9 animal than other work animals. Support small-scale farmers and agricultural labourers 9 Valley of Marvels, Eastern Ethiopia. Strategic national choices on biofuel development: a decision tree 9 (Photo: Brigitte Portner) Implementation Regional rural development and local solutions 11 Context-specific technologies and stakeholder involvement 11 Multifunctional solutions 12 Ensuring long-term viability 12 References Recommended reading 13 InfoResources Focus is published three times Editorial team: English editing: Ted Wachs a year in English, French and Spanish. It is Alessandra Giuliani, Ruth Wenger and Layout: available free of charge and may be ordered Susanne Wymann von Dach. Ana María Hintermann-Villamil, webhint.ch in pdf format, or as a print publication from the address at the right. InfoResources Focus No 3/09 Printing: Schlaefli & Maurer AG was compiled by Brigitte Portner, Annika Contact: InfoResources is a network that supplies and Salmi, Andreas Kläy, Fani Kakridi Enz, InfoResources spreads information on natural resources Susanne Wymann von Dach Länggasse 85, 3052 Zollikofen, Switzerland and international cooperation. and Albrecht Ehrensperger (all CDE). Tel.: +41 31 910 21 91 We will be happy to supply you with more Fax: +41 31 910 21 54 ample information by e-mail info@inforesources.ch www.inforesources.ch InfoResources is operated by three Swiss institutions: InfoResources is funded by: Intercooperation (IC-HO), Info Service CDE and InfoAgrar / SHL, in partnership with IC India / Bangladesh / Mali / Andes, CETRAD (Kenya) and SIMAS (Nicaragua). Bern University of Applied Sciences Swiss College of Agriculture SHL © InfoResources, November 2009 2 InfoResources Focus No 3/09
  • 3. Scope Bioenergy and development “Now we don’t have to worry about waking up early in the morning or walk- Regardless of their success, approaches to implementing biogas plants for individual ing for hours to find wood to store for months”, explains Sharmila Chau- households have repeatedly been criticised for dhary, a woman farmer in Sunsari District Nepal. not reaching the poorest of the poor, as people without access to land and livestock cannot provide sufficient biomass to run a biogas plant. Ms. Chaudhary has received guidance from the Biogas Sector Partnership- Biogas Sector Partnership Nepal to establish a plant that provides her household with biogas for www.bspnepal.org.np cooking and heating. The NGO has developed biogas plants that, besides gas, also provide slurry which can be used as fertiliser after mixing with solid residues and composting. Bioenergy is renewable energy from biomass. Fossil fuels are not involved as they are not renewable. Plants absorb solar energy, taking up carbon Despite such appropriate technologies, traditional bioenergy – fuelwood, dioxide as well as water and nutrients, which they store as biomass. Biomass is thus an energy source charcoal and dung – is still the main source of energy for over 2.5 billion and a form of carbon storage. Bioenergy may be people worldwide and indispensable for them to make a living. On the used directly or indirectly. Bioenergy resources and use can be grouped into three categories: other hand, traditional bioenergy use is often inefficient and depletes natu- • traditional bioenergy that comes directly from ral resources, thereby deteriorating agricultural production and threaten- woody biomass, such as fuelwood or charcoal, and from livestock dung; ing the livelihoods of the poor. • biofuels from energy crops such as sugar cane, oil palm or Jatropha, which are mainly used for transport; Greater awareness of the effects of climate change means that today mod- • bioenergy that comes indirectly from organic ern bioenergy solutions, such as biogas plants or biofuels, are seen by by-products and waste, such as slurry and residues from agriculture or forestry, i.e. straw many as a way to produce more energy while cutting down greenhouse or sawdust. gas (GHG) emissions and using natural resources more sustainably, thereby providing livelihoods for the poor. World in Transition – Future Bioenergy and Sustainable Land Use www.wbgu.de/wbgu_jg2008_engl.html The present InfoResources Focus is intended as a reflection on the context of bioenergy production and use, identifying current challenges and pre- senting certain aspects to be considered in pro-poor policy development and implementation. Bioenergy and climate change Currently, agriculture, including forestry and land use change, is responsible Many different studies looked at the amount of greenhouse gases emitted by agriculture, forestry, for about 30% of global anthropogenic GHG emissions. Bioenergy, in most and livestock husbandry with almost as many cases stemming from agricultural products, is thus also a source of emissions. differing results. Internationally, the International Panel on Climate Change (IPCC) report is the most GHG emissions resulting from bioenergy production and consumption are acknowledged. not necessarily lower when compared with fossil fuels. Nevertheless, if sus- tainably managed, i.e. by rehabilitating degraded lands, bioenergy can help Fourth Assessment Report of the International Panel on Climate Change to mitigate climate change by enhancing the sequestration of carbon in soils www.ipcc.ch/publications_and_data/ and vegetation and by partly substituting for fossil fuels. publications_and_data_reports.htm Bioenergy production based on agriculture is simultaneously an energy consumer and an energy provider. Energy produced from biomass requires inputs, like any other agricultural produce. Labour and energy, in the form of fertilisers or machinery, are used during the biofuel production process. In the context of modern industrialised agriculture, bioenergy production is generally input-intensive, and in many cases energy inputs such as fer- tilisers or petrol are obtained from fossil fuels, which leads to the emission of GHG. In developing countries, GHG emissions result mainly from the combustion of biomass and from clearing of forests and scrublands. Part of the land in these countries is used for the cultivation of biofuel feedstock. Most of the documents mentioned in the margin are annotated in the list of references. 3 InfoResources Focus No 3/09
  • 4. Global production of energy from biomass Besides being a GHG emitter, agriculture itself is affected by climate change. 1200 Higher global temperatures, uncertain and shifting precipitation patterns, 1000 increased variability, and more extreme events have negative impacts on Millons tonnes oil 800 agricultural production, including cultivation of biomass for energy. Small- equivalent 600 holder farmers in the developing world are the most vulnerable and will need institutional support to adapt to changes. 400 200 0 Resource efficiency 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Africa Latin America and sustainable land management and the Caribbean Current energy consumption, with its heavy reliance on fossil fuels, far Western and Central Asia North America exceeds the earth’s biological capacity. In order to provide more people Asia and the Pacific Europe with renewable energy while also cutting emissions, use of resources and energy in future must be significantly more efficient in order to satisfy needs 1 tonne of oil equivalent is equal to approximately with less resources and thus less energy. Resource efficiency means getting 4 m3 of wood. This figure includes the use of black liquor – a by-product from pulping, the separation more from available resources, while energy efficiency means reducing of woody fibres in paper production – as well as energy demand per unit of activity. To achieve improvements in resource agricultural residues and dung. and energy efficiency, innovations related to the institutional setting and to State of the World’s Forests 2009 technologies are thus essential for a more sustainable energy system. www.fao.org/docrep/011/i0350e/i0350e00.HTM To increase resource efficiency, grey energy needs to be reduced; multi- functional use and resource cascading must be envisaged. Grey energy refers to energy used in the production, processing and transport of bioen- ergy; multifunctional use is defined as using biomass for different applica- tions, while cascading is the use of biomass for subsequent applications, i.e. wood used for timber, then pulp and finally recycled for energy recovery. In Lima, Peru, entrepreneurs have started to buy used edible oil from res- Small-Scale Bioenergy Initiatives: Brief Description and Preliminary Lessons on taurants and fast food outlets in order to produce biodiesel. The recycled Livelihood Impacts from Case Studies in Asia, oil is then marketed as fuel to different consumers such as public transport Latin America and Africa www.fao.org/docrep/011/aj991e/aj991e00.htm companies and individual consumers. The rising demand for energy from biomass is putting pressure on natural resources. The easiest and cheapest way to obtain more biomass for energy production is often to expand the land area used for the production of energy crops. In some places energy crops are replacing other crops, pas- The State of Food and Agriculture 2008. Biofuels: Prospects, Risks and Opportunities tures, or natural vegetation, which leads to land use changes and competi- www.fao.org/docrep/011/i0100e/i0100e00.htm tion for resources. Bioenergy production has multiple impacts on soils, water and biodiversity. Large-scale production of energy crops can lead to erosion, to shifts in water regimes or pollution due to agrochemicals. The use of agri- cultural residues for bioenergy can lead to nutrient depletion and decrease of The following global overview of conservation organic matter. However, if bioenergy is produced in an integrated way, and techniques and approaches provides a comprehensive and extensive range of case studies if principles of sustainable land management are applied, land degradation on sustainable land management practices. can be stabilised or even reversed and biodiversity increased. Where the Land is Greener www.wocat.net/en/knowledge-base/ Negative environmental impacts along the supply, distribution and con- documentation-analysis/global-overview-book.html sumption chain are as important as field-level impacts during the produc- tion and processing stages. Leaking chemical containers, lack of wastewater treatment, and transport over long distances based on petroleum consump- tion also put pressure on natural resources. Proper management along the bioenergy chain, from the field to the end user, is thus necessary to avoid negative impacts and trade-offs with increased bioenergy production. 4 InfoResources Focus No 3/09
  • 5. Scope Bioenergy and the poor Lack of availability and access to affordable energy makes poverty Low-income food and energy importing countries, where most of the poor spend a great share entrenched. Today, for example, over 1.6 billion people do not have access of their income on food and energy, are most to electricity. Poor households generally use less energy than wealthier affected by high and volatile prices. The 2008 food price peak was partly caused by augmented households but due to lack of technologies, their use is not efficient. They biofuel production and high petroleum prices. The spend approximately 15–30% of their income on energy and several hours figure shows indices of food and fuel prices for 1998 – 2008; the peak is not visible in the figure, a day gathering fuelwood and dung. Hence, poor households are dis- as prices subsequently fell. proportionately affected by high and volatile energy prices. Improving Indices of Fuel and Food Prices 1998–2008 access to affordable energy services and efficiency of use free up time and 250 in terms of US dollars) resources. This can help to break cycles of poverty, as basic human needs 200 (2005=100, such as cooking, lightning and heating as well as income-generating activi- 150 ties rely on energy. 100 50 Both the rural and the urban poor are bioenergy consumers and produc- 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 ers: bioenergy solutions such as biogas from agricultural residues or human waste management can ease pressure on natural resources and alleviate Food Petroleum poverty. Rural-urban linkages related to energy are very close. The rural Food and Energy Crisis: poor depend mainly on fuelwood, while the urban poor rely heavily on Time to Rethink Development Policy www.southcentre.org/index.php? charcoal produced in rural areas. Bioenergy based on local production and option=com_content&task=view&id=849 consumption cycles holds great potential for both rural and urban areas. &Itemid=1&lang=en In most developing countries women and children are responsible for In 2007, over 45 million tonnes of charcoal were produced in the world, with Africa representing the providing energy from traditional sources. Gender relations and physical biggest share at 50%. In the last ten years, global capacities determine access to resources to some extent as well as vulner- charcoal production has more than doubled, leading in some cases to resource depletion, ability to poverty. This can have severe consequences on human health and mainly affecting the rural poor, and to price rises, safety. On one hand, without access to energy, even basic human needs mainly affecting the urban poor. Based on FAOSTAT 2009 such as cooking are hindered. Additionally, burning solid fuels on open faostat.fao.org fires leads to the death of 1.6 million people annually, women and children in particular. On the other hand, labourers in bioenergy processing plants and in the fields need protection measures and training in how to deal with chemicals and machinery. In addition, alternative farming and processing practices need to be promoted. Wealthier households might be in a position to choose their energy carrier, but the poorest are not in a position to select from different production and consumption options, as they often lack even the basic necessary resources such as dung from livestock for biogas plants. Bioenergy produc- tion can only alleviate poverty if poor people have equitable access to natu- ral resources and technologies for efficient energy use and are involved in related decision-making processes and negotiations. Particularly landless Inforesources Focus 2/06 on Sustainable Energy – Rural Poverty Alleviation provides additional and female-headed households, which in many societies are among the information on the linkage between renewable poorest of the poor, often lack access and tenure rights to resources, nego- energy and poverty www.inforesources.ch/pdf/focus06_2_e.pdf tiation skills, and power in their communities. 5 InfoResources Focus No 3/09
  • 6. Scope Challenges Establishing electricity services in rural Energy provision for the rural poor communities, thereby connecting remote areas to the grid, unlocks local capital and opens new Without access to energy, poverty will never be eradicated; energy is opportunities for small-scale investments. needed for a broad range of activities such as cooking and heating, trans- Energy Services for the Millennium port and communication, to power small enterprises, run water pumps, or Development Goals provide light to students to do their homework. www.unmillenniumproject.org/documents/ MP_Energy_Low_Res.pdf The urban as well as the rural poor are energy-poor; unlike the urban poor, however, the rural poor live in remote areas and are spatially dispersed. Providing them with affordable and reliable energy and connecting remote villages to national electric grids are major challenges. Energy planning policies tend to reach these areas only through development of national electric grids and large power plants. It is often forgotten that a significant overall contribution to national energy supply can be made at the local level. Decentralised bioenergy systems can help to reduce energy poverty in remote areas. To satisfy increasing food and energy demands, Bioenergy in ecosystems large-scale land acquisitions – or land grabs – are on the rise in developing countries to produce food Increased biomass production for bioenergy inevitably leads to land use or biofuels. Justification for most of these land changes. The challenge is to avoid bioenergy production and processing grabs is made by the claim that production takes place on a country’s marginal land or a small that will negatively impact on the availability and quality of land and water proportion of its total suitable land. In reality, used for food production. most such land is already under use, often by local people, and pressure on more valuable land is growing. Recently, energy crops like Jatropha curcas have raised hopes that marginal Land Grab or Development Opportunity? areas could be used for biofuel production without competing with food www.fao.org/docrep/011/ak241e/ak241e00.htm production. But the definition of marginal or idle land is a subject of con- troversy, as land in this category is often used for fuelwood collection by women or as grazing land by pastoralists. Additionally, the diversion of available water to irrigate energy crops can lead to water shortages else- where. Hence, bioenergy planning and policies will not succeed by taking account only of energy aspects. Adopting an ecosystem perspective on Biofuels and Ecoagriculture: Can Bioenergy Production Enhance Landscape-Scale bioenergy planning is a major challenge today. Ecosystem Conservation and Rural Livelihoods? www.ecoagriculture.org/documents/ files/doc_282.pdf Bioenergy production as a livelihood strategy Energy produced from biomass needs to be integrated into the livelihood strategies of the poor. Bioenergy production at the farm and village lev- els is usually more promising, as local and regional use of bioenergy is economically more attractive than export, and the potential for poverty alleviation is higher. Revenues from export commodities generally benefit traders and retail- International Trade in Biofuels: Good for Development? And Good for Environment? ers, while local producers receive comparatively little. Modern small-scale www.iied.org/pubs/pdfs/11068IIED.pdf bioenergy production can provide additional income for the poor, improve people’s health, and reduce pressure on natural resources. However, with- out an inclusive institutional setting, the poor will have trouble adopting modern bioenergy production as part of their livelihood strategies. 6 InfoResources Focus No 3/09
  • 7. Policy The international framework Bioenergy production must comply with climate change policies and pro- World Development Report 2010: poor development policies. High-income countries have a responsibility Development and Climate Change to provide technical and financial assistance in order to foster low-carbon www.worldbank.org/wdr2010 energy development. Frameworks and regulations at the international and national levels must provide an environment that clearly couples the differ- ent interests and opportunities of bioenergy in order to be regulatory but also provide incentive. Putting agriculture on the agenda Climate change and the demand for climate-neutral energy have been Researchers from the International Food Policy Research Institute recommend three avenues to be among the main drivers of international interest in bioenergy. If bioenergy pursued by the negotiators at the Climate Change is to contribute to a climate-neutral energy supply, agriculture needs to be Conference in Copenhagen, 2009: • investments in agriculture, integrated into international directives, as mitigation of climate change • incentives to reduce emissions, and must first and foremost involve binding targets to reduce GHGs. Despite • information and monitoring services. being major emitters, agriculture, forestry and related land use changes are Agriculture and Climate Change: still not included in international agreements on climate change. An Agenda for Negotiation in Copenhagen www.ifpri.org/sites/default/files/ publications/focus16.pdf Farmers are the main land managers worldwide. International agree- ments will have to ensure that agriculture is not just blamed for being a carbon emitter; there is a need to ensure that sustainable land manage- ment, including bioenergy production, contributes significantly to climate change mitigation and to investments in rural communities. Agricultural practices that enhance agricultural productivity and support ecosystems and their services, such as carbon sequestration in soils and avoidance of deforestation, i.e. for biofuel crops, need to be included in international climate change mitigation and adaptation policies and programmes. Compensation for ecosystem services The increasing attention being given to bioenergy is accompanied by a Markets associated with ecosystem services are on the rise. But criticism has been voiced that the growing number of markets for ecosystem services, as both are seen as poor who provide these services are not the ones a way to reduce GHG emissions related to agriculture. For many small- who get the financial benefit, as participation in these markets is also linked to power structures. scale farmers, these mechanisms could constitute an additional livelihood Additionally, there is a general lack of capacity opportunity. Compensation for services provided by agricultural ecosys- to implement projects consistently, as well as a lack of internationally agreed and legitimate tems includes direct public and private payments, tax incentives, and cer- rules and principles. Institutional arrangements tification schemes. for payments for ecosystem services need to be flexible in order to adapt to different socio- ecological systems. While most of these tools are applied nationally, certification schemes have also been used internationally, for example for coffee or wood. Certifica- Building Institutions to Trade Ecosystem Services: Marketing Forest Carbon in Mexico tion schemes for biofuels are currently under discussion but are still being doi:10.1016/j.worlddev.2007.09.010 elaborated and must be agreed upon at the international level. Additionally, they need to comply with World Trade Organization (WTO) regulations The Roundtable on Sustainable Biofuels is currently developing principles and criteria for sustainable as well as sustainability standards, including labour rights for agricultural biofuels. It is an international initiative bringing workers and environmental criteria such as biodiversity conservation. Sus- together farmers, companies, non-governmental organizations, experts, governments, and inter- tainability standards and certification schemes must also include trade-offs governmental agencies concerned with ensuring the between sectors, and the methodologies applied need to be comparative, sustainability of biofuels production and processing. credible and affordable in order to be implemented and followed. Roundtable on Sustainable Biofuels http://cgse.epfl.ch/page65660-en.html 7 InfoResources Focus No 3/09
  • 8. Trade constraints Today, international trade in bioenergy is in its Bioenergy trade volume will increase in future despite negative environ- initial stage. Most biomass traded is currently non-bioenergy products. The most internationally mental impacts due to GHG emissions from transportation. Favouring traded bioenergy products are: vegetable oils (62% domestic markets over international markets thus has a double benefit: of palm oil is traded, 15% of rapeseed oil), wood pellets (25%), ethanol (8.5% of world production is reduced environmental impact during transport, and bioenergy produc- traded), charcoal (2.2%) and fuelwood (0.2%). tion and trade that are more likely to be pro-poor. Consequently, efforts to promote bioenergy trade ideally centre on local and regional remedies. Risk Governance Guidelines for Bioenergy Policies www.irgc.org/IMG/pdf/ IRGC_PB_Bioenergy_WEB-2.pdf Today, market distortions disproportionately affect developing countries and are even reinforced by the emergence of biofuels, as they are mainly produced in the South. Currently, the global North subsidises agriculture with approximately USD 300 billion per year. International organisations, such as the WTO and the United Nations Conference on Trade and Devel- opment (UNCTAD), have no common policy for dealing with bioenergy flows, subsidies, taxes, import barriers and investment. Trade policies on bioenergy have to be harmonised, be pro-poor, and ensure that produc- tion, processing, trade and consumption of bioenergy are sustainable. 8 InfoResources Focus No 3/09
  • 9. Policy The national level Cross-sectoral bioenergy policies and land-use planning The development of effective, sustainable and efficient policies requires the Policy and decision-makers need to understand the interactions between the various policy consideration of many different issues and trade-offs. Bioenergy strategies domains and levels related to bioenergy. They have to be linked to agriculture, energy, rural development, environment need to assure that food security considerations are given priority. Trade in energy and agriculture, and food strategies. Careful resource and land use planning is necessary in particular, is marked by wide disparities. In and must adopt a consultative approach involving all concerned stakehold- the case of energy, for example, a relatively small number of countries dominate exports, ers. Besides current policies that aim to replace fossil fuel with biofuels for while most countries import most – and, in some transport, governments must focus on production and consumption pat- cases, all – of the fuels they consume. Diversified energy portfolios would thus also have benefits terns, as these are also potential fossil fuel consumers. at the national level and ideally also contribute to sustainable development. Sustainable Bioenergy: Diversifying the energy portfolio A Framework for Decision Makers Investments in agriculture, energy and infrastructure such as irrigation, http://esa.un.org/un-energy/ pdf/susdev.Biofuels.FAO.pdf extension services, and research, as well as in innovative approaches and technologies, can significantly improve energy and resource efficiency. National energy diversification, away from fossil fuels and towards renew- able energy sources such as bioenergy, increases a country’s energy inde- pendence. Stakeholders need access to information and clear incentives to limit emissions and to invest in bioenergy solutions. Diversifying the energy portfolio reduces overall risk and increases opportunities for private invest- ment. In addition, approaches that produce surplus energy which can be fed into the national grid should be given priority. Support for small-scale farmers and agricultural labourers Pro-poor bioenergy markets need to pay specific attention to institutional Land titles and community rights to self- determination can enable farmers to earn an arrangements: small-scale farmers and agricultural labourers must not be equitable share of revenues from biofuel production. disadvantaged by the international value chain or by contracts with bioen- Whenever a bioenergy project is proposed, informed decision-making and local participation is crucial. ergy plants. Bioenergy producers and consumers need to have access to For this to happen, however, small-scale farmers energy markets and fair tariffs. Along with linking of sectoral strategies, need technical assistance, access to credit, fair contracts, and support to establish cooperatives. A coordination and coupling between the different institutions and organi- favourable institutional setting must be provided by sations involved enhances the effectiveness of bioenergy systems in rela- national policy. tion to poverty reduction, energy, and resource efficiency. Strengthened Biofuels and Ecoagriculture: Can Bioenergy institutional capacities, investment in research and properly defined tasks Production Enhance Landscape-Scale among involved stakeholders will contribute to knowledge exchange and Ecosystem Conservation and Rural Livelihoods? www.ecoagriculture.org/documents/ appropriate implementation of technologies. files/doc_282.pdf Strategic national choices on biofuel development: a decision tree Decisions related to the implementation of bioenergy projects require consideration of different impacts and trade-offs by decision-makers. The decision tree below can guide the processes needed on the way to making final choices about national biofuel development. 9 InfoResources Focus No 3/09
  • 10. Policy Identify clear set of policy goals Rural Export Climate change Energy security? development? development mitigation Choosing crops for biofuels Are biophysical conditions (eg rainfall, available land) and technology (eg fertilisers, processing capability) suitable for your chosen feedstock? Yes Food security analysis Is it possible to assure food security alongside biofuel production? Look at national food availability (production and imports) Yes Not sure and access to food for poorer social groups Environmental analysis Is it possible to assure environmental protection is part of biofuel production and use? Look at issues such as land and water use, soil Yes Not sure and water impacts, and greenhouse gas emissions Social analysis Is it possible to assure positive social outcomes through biofuel production and use? Look at issues such as large-scale vs small-scale Yes Not sure production, land rights and labour conditions Economic analysis Are biofuels the most cost-effective means of achieving the desired policy goals? Look at costs relative to, for example, other energy sources, Yes Not sure other ways of promoting rural development Proceed with biofuel development Look at market options Can biofuels out-compete Do international competitiveness, alternatives for local energy market access and trade supplies preferences allow export? Yes Yes Production for local Production Production for regional/ and remote areas for national market international market Source of figure: Biofuels: Strategic policy support demands long-term commitment Making Tough Choices and coherence among sectors www.iied.org/pubs/pdfs/17032IIED.pdf 10 InfoResources Focus No 3/09
  • 11. Implementation Regional rural development and local solutions There is not a single solution to the three challenges mentioned on page 6. All of them, however, are concerned with meeting local place-based needs and considering the context. Bioenergy production must provide poor people with affordable and accessible low-carbon energy – over the long run and in sufficient quantities and quality without degrading ecosystems and undermining food security. But providing bioenergy alone will not solve the problem of poverty; development activities will not take place if communities can light only one bulb per shelter. Context-specific technologies and stakeholder involvement On the Pacific Islands the coconut tree plays a vital role in local communi- ties. Removing and drying the coconut kernel to make “copra” has been a primary source of income for generations. As a response to highly volatile prices for copra and coconut oil and the high dependence on imported petroleum, the islanders started to search for alternatives such as produc- tion diversification and the transfer of processing units to production sites. In Vanuatu, coconut farmers and copra producers work together in coop- Biofuel Energy from Coconut in the Pacific eration to find feasible and sustainable opportunities to use coconut oil to Island run vehicles and generators. www.riaed.net/IMG/pdf/Thesis_Copra_Biofuel.pdf Before implementing bioenergy projects, the current status of energy sup- ply has to be assessed and understood. It is of crucial importance for the project design to know local energy needs: who uses energy and what type of energy is in use; how energy is produced and delivered to the Implementing Sustainable Bioenergy users and how much they pay; and how much they would and could pay Production. A Compilation of Tools for a dependable bioenergy service. The best technology is the one that is and Approaches http://data.iucn.org/dbtw-wpd/ selected according to the needs of the local population, and the availability edocs/2008-057.pdf and type of bioenergy. It is not always the newest technology that is best suited, and many large- scale applications might be too expensive for rural households. Neverthe- less, financial considerations have to take account of the lifespan of a tech- nology – in some cases investment costs might be relatively high, but will be repaid after a number of years. For poor households to afford bioenergy, micro-credits and other financial incentives will have to be considered. Community involvement is thus central to successful implementation of A gender perspective in planning bioenergy projects ensures that the concerns and needs of small-scale bioenergy projects, as technologies such as biogas combus- women and men are taken into account. Women’s tion using agricultural residues, or farming practices that explicitly include involvement is of particular importance, as women spend three times as much time transporting energy production besides food and feed, generally face barriers when fuel and water as men and regularly carry four introduced. Particular attention must be given to women, as they are most times as much as men in volume. In some cases biogas systems have increased women’s workload often responsible for a household’s energy provision. Additionally, trans- because of the additional biomass and water that parency in negotiations must be ensured in order to benefit stakeholders has to be carried. and communities equally and to ensure that existing land and property Gender and Bioenergy rights are respected. www.genderandenvironment.org/admin/ admin_biblioteca/documentos/ Factsheet%20BioEnergy.pdf 11 InfoResources Focus No 3/09
  • 12. Implementation Multifunctional solutions In the Tanga Region, on the coast of Tanzania, Sisal is the most impor- tant cash crop for small-scale farmers. Farmers intercrop sisal mainly in outgrower schemes, and the products, such as ropes, carpets or clothing, are sold on national and the international markets. Since planting and harvesting takes place all year, there is little vulnerability to environmental shocks, giving farmers financial security. However, with current production Small-Scale Bioenergy Initiatives: Brief Description and Preliminary Lessons on methods only 4% of the plant can be used as fibre. Sisal companies have Livelihood Impacts from Case Studies in Asia, thus started to use the residues for biogas production. The biogas is used to Latin America and Africa ftp://ftp.fao.org/docrep/fao/ run electricity generators in production plants and excess electricity is sup- 011/aj991e/aj991e.pdf plied to farmers’ homes, schools and hospitals. Bioenergy production that acknowledges the multiple uses, functions and services of ecosystems offers a number of opportunities, including improved livelihoods and reduced land degradation. Bioenergy production based on the use of agricultural residues or organic waste is an option that does not necessarily require a change in the production system but integrates food, feed, fibre and fuel with sustainable land management practices. Agroforestry and inter-cropping, for example, are sustainable land manage- ment options for diversifying the agricultural production system without competing with food supplies. Many of these integrated approaches result in by-products, as shown example above. Additionally, food-energy systems are a very low-cost climate change mitigation option: perennial plants with deep root systems and cultivation systems that leave agricultural residues reduce water use and store carbon in the soils and the biomass. Ensuring long-term viability Energy plants require maintenance in order to provide energy continuously. On the one hand, people have to be trained to maintain bioenergy service over the long run at a sustained quality and quantity. On the other hand, consumers have to agree to pay a fair price for this service. Depending on the amount and type of energy produced, surplus might be fed into a regional or national grid (i.e. electricity), or a marketing concept for by-products may need to be elaborated, for example for clothing made of sisal. However, for bioenergy production to be competitive, economies of scale and stable energy prices are required. The former requires cooperation at “Outgrower scheme” is a commonly used term the local level: producer organisations, smallholder cooperatives or out- for contract farming. It implies the availability of credit, timely supply of inputs, knowledge transfer, grower schemes can facilitate market access by small-scale farmers. The provision of extension services and access to a latter calls for a credible international commitment to reduce fossil fuel ready market. The same principles can also be applied to non-farm bioenergy production such as consumption and to invest in renewable energies. human waste management. If rights and duties along the bioenergy value chain have been agreed on, The State of Food and Agriculture 2008. Biofuels: Prospects, Risks and Opportunities bioenergy production has the potential to lead to the development of a ftp://ftp.fao.org/docrep/fao/011/ private sector, stimulate job creation, and offer new climate-neutral energy i0100e/i0100e.pdf opportunities without depleting natural resources or putting people’s live- lihoods in danger. 12 InfoResources Focus No 3/09
  • 13. References Recommended reading The following list features a documented and targeted selection of print documents and Internet sites of relevance to “Bioenergy for the Poor: Two Sides of a Coin”. The documents are listed by title in alphabetical order. All are available online (accessed on 2 November 2009). International Food Policy Research Institute. 2009 Policy Agriculture and Climate Change: An Agenda for Negotiation in Copenhagen 2020 Focus 16. www.ifpri.org/sites/default/files/focus16_01_0.pdf A set of policy briefs by various contributors, who share their views on key points concerning why agriculture has to be carefully included in the international climate change negotiations. The brief provides science and technology options, concluding with a strong plea for agriculture and for ongoing negotiations to address climate change, which will provide a unique opportunity to combine low-cost mitigation and essential adaptation outcomes with poverty reduction. Aurélie Leplus. 2003 Case studies Biofuel Energy from Coconut in the Pacific Island The Lory cooperative pilot project. MSc Thesis. Wageningen: Wageningen Agricultural University. www.riaed.net/IMG/pdf/Thesis_Copra_Biofuel.pdf The coconut is an abundant and valuable source in the Pacific region and its products and by-products have an important role in the islands’ economies. The study analyses coconut oil production at the Lory cooperative pilot project in Vanuatu for fuel use and its potential as a sustainable energy carrier at the village level. Coconut fuel has the potential to offset imported petroleum and to improve revenues for the local population. Jeffrey C. Milder, Jeffrey A. McNeely, Seth A. Shames and Sara J. Scherr. 2008 Policy Biofuels and Ecoagriculture: Can Bioenergy Production Enhance Landscape-Scale Ecosystem Conservation and Rural Livelihoods? International Journal of Agricultural Sustainability 6(2):105–121. doi:10.3763/ijas.2008.0344 www.ecoagriculture.org/documents/files/doc_282.pdf Ecoagriculture, an approach with the threefold aim of biodiversity and ecosystem services conservation, sustainable agriculture production and viable local livelihoods, is used as a framework for evaluation of the effects of biofuel production on multiple landscape variables. The recommendations include i.a. the incorporation of biofuels into multifunctional agricultural landscapes in the context of smallholder production for local use, as well as the need for well-designed national biofuel programmes and further research. Sonja Vermeulen, Annie Dufey and Bill Vorley. 2008 Policy Biofuels: Making Tough Choices Sustainable Development Opinion. London: International Institute for Environment and Development www.iied.org/pubs/pdfs/17032IIED.pdf National biofuel policies may strive for different goals, such as export or rural development, energy security or climate mitigation. At the same time, their design is unavoidably linked to negotiations between governments and other interest groups and requires trade-offs. This short publication introduces the “decision tree” as a tool to sup- port the complex process of decision-making. Case studies Biogas Sector Partnership Nepal Overview www.bspnepal.org.np Operating as the implementing agency for the Biogas Support Programme Nepal (BSP), the Biogas Sector Partner- ship specializes in the development and dissemination of biogas plants as a means of protecting the environment while improving livelihoods and addressing social and sustainability issues. Its activities include technical and capacity development as well as the development of partnerships and fundraising, while keeping an eye on socio- economic and gender questions. In its website, the BSP, provides ample information about the project itself as well as technical information, success stories and a list of publications. Esteve Corbera and Katrina Brown. 2008 Case studies Building Institutions to Trade Ecosystem Services: Marketing Forest Carbon in Mexico World Development 36(10): 1956–1979. doi:10.1016/j.worlddev.2007.09.010 13 InfoResources Focus No 3/09
  • 14. This case study from Mexico analyses the development of markets for forest carbon in the context of the Clean Development Mechanism (CDM) of the Kyoto Protocol. It concludes that several challenges lie ahead and identifies a lack of support for adequate institutional arrangements, insufficient capacities for the implementation of such projects, and lack of integration between the institutions concerned as the main problems. Sijay Modi, Susan McDade, Dominique Lallement and Jamal Saghir. 2006 Policy Energy Services for the Millennium Development Goals Overview UN Millennium Project, UNDP, Energy Sector Management Assistance Programme, and the World Bank www.unmillenniumproject.org/documents/MP_Energy_Low_Res.pdf There is no MDG explicitly related to energy, but greater access to sustainable and affordable energy services is a condi- tion sine qua non for the achievement of all the MDGs. This publication firstly highlights the linkages between energy services and each Goal, keeping an eye on the different roles and needs of men and women and on different condi- tions in urban and rural areas. It provides insight into the main operational challenges in provision of these services. South Centre. 2008 Policy Food and Energy Crisis: Time to Rethink Development Policy Reflections from the High Level North-South Dialogue on Food and Energy Security www.southcentre.org/index2.php?option=com_docman&task=doc_view&gid=1062&Itemid=69 Aiming to raise awareness about linkages between food security, energy security and climate change, and to pro- mote discussions about possible solutions, the South Centre and the Permanent Mission of Indonesia in Geneva organised, on 17 June 2008, a High Level Dialogue on Food Security and Energy Security. The publication particu- larly emphasises a Southern perspective and summarises the discussion of the Dialogue and contains reflections regarding the key messages that emerged from it. Intergovernmental Panel on Climate Change. 2007 Policy Fourth Assessment Report: Climate Change 2007 (AR4) Overview www.ipcc.ch/publications_and_data/publications_and_data_reports.htm The Intergovernmental Panel on Climate Change (IPCC) was jointly established in 1988 by the World Meteoro- logical Organization (WMO) and the United Nations Environment Programme (UNEP), with a mandate to assess scientific information related to climate change, to evaluate the environmental and socio-economic consequences of climate change, and to formulate realistic response strategies. Since its establishment, the IPCC has produced a series of Assessment Reports. Ariana Araujo and Andrea Quesada-Aguilar in collaboration with Lorena Aguilar, Andrea Athanas and Nadine McCormick. 2007 Policy Gender and Bioenergy www.genderandenvironment.org/admin/admin_biblioteca/documentos/Factsheet%20BioEnergy.pdf This fact sheet illustrates the differences in men’s and women’s energy needs, as they arise from different social, cultural and economic situations. As a result, inappropriate policies can increase women’s vulnerability and poverty for them and their families. The paper provides concrete recommendations for the inclusion of a gender perspec- tive into bioenergy policies and practices. These include, among other things, women’s access to information, to training programmes, and to credit and to carbon fund markets. International Union for Conservation of Nature. 2009 Instruments Implementing Sustainable Bioenergy Production: A Compilation of Tools and Approaches http://data.iucn.org/dbtw-wpd/edocs/2008-057.pdf Sustainable production is a prerequisite for bioenergy to achieve positive results in terms of environmental man- agement and livelihood development. The authors provide examples of existing principles, frameworks, tools and approaches as well as key recommendations for reducing and managing risks related to inappropriate policies. Annie Dufey. 2007 Policy International Trade in Biofuels: Good for Development? And Good for Environment? www.iied.org/pubs/pdfs/11068IIED.pdf International production and trade in biofuels is expanding rapidly and may quadruple in the next twenty years. But many of the policies related to biofuels are not adequate to deal with the complexity of the issue and to ensure the 14 InfoResources Focus No 3/09
  • 15. References sustainable development of biofuel production and markets. The positive impacts expected by this expansion may therefore be accompanied by important negative side-effects such as increased poverty, environmental damage, and food shortages. The author highlights the trends in international biofuel trade and explains the linkages between biofuels and sustainable development in terms of environmental conservation and social development. International Institute for Environment and Development and Food and Agriculture Organization of the United Nations. 2009 Overview Land Grab or Development Opportunity? Agricultural Investment and International Land Deals in Africa Policy www.fao.org/docrep/011/ak241e/ak241e00.htm Independent of the reasons that lead to land grabs, they are a constantly increasing phenomenon that contains both risks and development opportunities for rural populations in recipient countries. The present publication draws preliminary conclusions about the possible impacts of land grabs and provides recommendations for recipient gov- ernments as well as investors and international development agencies. International Risk Governance Council. 2008 Policy Risk Governance Guidelines for Bioenergy Policies Overview Geneva: International Risk Governance Council. www.irgc.org/IMG/pdf/IRGC_PB_Bioenergy_WEB-2.pdf The Council’s policy brief provides the reader with information about recent bioenergy developments and policies and shows up risks and opportunities related to economic, social, structural and environmental issues. Among its recommendations, the Council suggests the use of Life-Cycle and Environmental Impact Assessments (LCAs and EIAs) in order to ensure an adequately broad scope for policy-making. For developing countries, it recommends the production and use of bioenergy, primarily at the local level. Instruments Roundtable on Sustainable Biofuels http://cgse.epfl.ch/page65660.html The Roundtable on Sustainable Biofuels (RSB) is an international initiative bringing together stakeholders from various sectors and institutions concerned with ensuring the sustainability of biofuels production and processing. By means of a large concertation process among partners and networks, it has established a list of principles and criteria for sustainable biofuels and is actually working on the creation of standards. The RSB also organizes meet- ings, teleconferences and online discussions. Food and Agriculture Organization and Policy Innovation Systems for Clean Energy Security. 2009 Case studies Small-Scale Bioenergy Initiatives: Brief Description and Preliminary Lessons on Livelihood Impacts from Case Studies in Asia, Latin America and Africa ftp://ftp.fao.org/docrep/fao/011/aj991e/aj991e.pdf 15 case studies from 12 countries in Latin America, Africa and Asia illustrate the way diverse local bioenergy initiatives can affect rural livelihoods in various contexts. The studies were conducted using a market systems perspective, which takes account of the enabling environment, market chain actors, and linkages and supporting services. The publication analy- ses and compares the case studies, and provides lessons and conclusions as well as recommendations for further work. Food and Agriculture Organization of the United Nations. 2009 Overview State of the World’s Forests www.fao.org/docrep/011/i0350e/i0350e00.HTM This year’s Outlook considers the forest and forestry prospects at the sub-regional, regional and global levels. It fore- sees that the global demand for wood and wood products will rise, requiring a balance between production and the maintenance of environmental services such as clean air and water, climate change mitigation and landscape conserva- tion. Forest sector institutions, whose role and interactions are undergoing important changes, will have to consolidate and avoid fragmentation, while the science and technology sectors will have to keep pace with rapid change. UN-Energy. 2007 Policy Sustainable Bioenergy: A Framework for Decision Makers http://esa.un.org/un-energy/pdf/susdev.Biofuels.FAO.pdf Bioenergy production can be an efficient remedy for mitigating environmental degradation and climate change, as well as dependence on an increasingly unstable world oil market. However, to fulfill those goals, its production must be ecologically, socially and economically sustainable. With a special focus on liquid biofuels, this publication presents 15 InfoResources Focus No 3/09
  • 16. References nine key sustainability issues and explains potential benefits and trade-offs at both the national and international levels. Furthermore, it assists policy and decision-makers by putting at their disposal a brief framework for action. Food and Agriculture Organization of the United Nations. 2008 Policy The State of Food and Agriculture 2008: Biofuels: Prospects, Risks and Opportunities www.fao.org/docrep/011/i0100e/i0100e00.htm FAO’s 2008 report on the state of food and agriculture focuses on the current debate on biofuels. It examines current policies as well as those that will be necessary to address the potentially fateful impacts that unsustainable produc- tion and use of biofuels can have on the environment, food security and the poor. In its key messages it concludes, among other things, that the impacts of biofuel development will be felt by all countries through their agricultural markets, and that criteria for sustainable production, without being an absolute panacea, can help to improve the environmental footprint of biofuels. Hanspeter Liniger and William Critchley (editors). 2007 Instruments Where the Land is Greener Case studies and analysis of soil and water conservation initiatives worldwide. World Overview of Conservation Approaches and Technologies (WOCAT). www.wocat.net/en/knowledge-base/documentation-analysis/global-overview-book.html The World Overview of Conservation Approaches and Technologies (WOCAT) is a network of soil and water conser- vation specialists from all over the world. ‘Where the Land is Greener’ synthesises the experience they have gained since WOCAT was initiated in 1992. The book is a stimulus to apply sustainable land management on all farmland, pastoral areas, and forestland. It proposes a broad range of technologies and approaches for areas where the land is not yet ‘green enough’. The World Bank, 2009 Policy World Development Report. 2010: Development and Climate Change Overview www.worldbank.org/wdr2010 The authors of the World Development Report 2010 argue that a climate-smart world is within reach if we act now to tackle the substantial inertia in the climate, in infrastructure, and in behaviour and institutions; if we act together to reconcile needed growth with prudent and affordable development choices; and if we act differently by investing in the needed energy revolution and taking the steps required to adapt to a rapidly changing planet. German Advisory Council on Global Change (WBGU). 2009 Policy World in Transition – Future Bioenergy and Sustainable Land Use www.wbgu.de/wbgu_jg2008_en.pdf Bioenergy policy is designed within a difficult context, characterized by the complexity of the issue, scientific uncer- tainty, and multiplicity of interests. Yet the right policy can generate positive and sustainable results. The WGBU analy- sis presents strategies showing how bioenergy can become part of sustainable energy systems in industrialised, newly industrialising, and developing countries. It proposes a global regulatory framework for sustainable policies that aim to help mitigate climate change and overcome energy poverty while minimising risks such as loss of biodiversity. InfoResources services will cease at the end of 2009 Dear readers, sadly we have to inform you that all InfoResources services will cease at the end of 2009. In the context of an internal reorientation process, our donor – the Swiss Agency for Development and Cooperation (SDC) – has decided to discontinue its financial support. Since 2003 we have been able to supply you with InfoResources News, InfoResources Focus, InfoResources Trends and the InfoResources Research Service. For us, these were interesting and challenging tasks. We hope that our services provided you with interesting and useful inputs to your daily work. Your comments are welcome; please address them to: info@inforesources.ch. Thank you for your interest in our products. Your InfoResources Team: Jane Carter, Monika Egli, Ulla Gämperli, Alessandra Giuliani, Felix Hintermann, Fani Kakridi Enz, Andreas Kläy, Hans Schaltenbrand, Bettina Stäubli, Ruth Wenger, Susanne Wymann von Dach, and our partners CETRAD (Kenya), IC-Delegations (Andes, Bangladesh, India and Mali) and SIMAS (Nicaragua). 16 InfoResources Focus No 3/09