1. Biomass based bio-energy program inBiomass based bio-energy program in
MadagascarMadagascar
Mainstreaming bio ethanol energy generation into
environment and other sectors
Bienvenu RAJAONSON
Senior Environmental Specialist
WORLD BANK
November 27 , 2010

2. Presentation overviewPresentation overview
 Background
 Key concept of the project
◦ Links to poverty and natural resources
 Overall constraints
 Institutional framework
 Key baselines
 Biomass program (ethanol)
◦ Components
◦ Value chain analysis
 Where we stand? Per component
 Projections, environmental and poverty reduction expected
impacts
 Conclusions

3. BackgroundBackground
 Madagascar is one of the poorest countries worldwide,
 Madagascar is one of the Hotspot countries in terms of
biodiversity
 Madagascar is one of the most exposed countries
worldwide in terms of natural disaster
 These issues pose problems for economic stability.
 We started this bio ethanol program in 2001

4. The key concept which drives the project
Links to poverty and natural resources use
Poverty rate
NR Exploitation

5. How to reverse the trend for the benefit of theHow to reverse the trend for the benefit of the
growth?growth?
The following three models are appropriate
Model 1: development for conservation
Model 2: Conservation for development
Model 3: Merging the two
BECAUSE
Prevention measures are more important
than cure approach

6. Overall constraintsOverall constraints
Speed of degradation,
Cost of recovery,
Time to substitute the expected loss is
challenging as change of social patterns
has to be considered and takes time,
Institutional framework often doesn’t
exist and
Scale up is a big challenge

7. Institutional frameworkInstitutional framework
• Sectoral Policies exist
• Administration capacity weak
• Coordination among project not
enough
• Decentralization of NR management
is not fully effective
• Legislation exist but law enforcement
is lacking
• Natural resources governance weak

8. Some Key baselinesSome Key baselines

9. Vulnerability of coral reefs
Sources : BD500/FTM
Edition : UCDD / DIE / ONE - Février 2005
CARTE DES RECIFS
Récifs
#Y
#Y
#Y
#Y
#Y
#Y
TOLIARA
MAHAJANGA
TOAMASINA
ANTSIRANANA
FIANARANTSOA
ANTANANARIVO
N
EW
S
Limite de la Province
#Y Chef Lieu de Faritany
100 0 100 Kilomètres
•Over 2000 km reefs for 5,000
km coasts
•Pressures: anthropic activity (
fishery; taking materials;
sedimentation );
•Absence of functional
cartography
•A monitoring program for
reefs is in place ( regional
context)
I. Context

10. Vulnerability of mangrove areas
CARTE DES MANGROVES
Source : BD500/FTM - IEFN/DGEF 1996
Edition : UCDD / DIE / ONE - Février 2005
Mangroves
100 0 100 Kilometers
LEGENDE
N
EW
S
#Y
#Y
#Y
#Y
#Y
#Y
TOLIARA
MAHAJANGA
TOAMASINA
ANTSIRANANA
FIANARANTSOA
ANTANANARIVO
Limite de la Province
#Y Chef lieu de Faritany
I. Context
•Current total area :
404,000 ha ( CI. 2001)
•Degradation is 6% per
year
•Pressures are due to
wood exploitation and to
concentrated activities :
salt production;
aquaculture; tourism…

11. Vegetation fire MAP
Edition: UCDD/DIE/ONE, Novembre 2004
Source: DGEF, BD 500 FTM, USGS, PACT Madagascar, Novembre 2004
COEFFICIENT D'ACTIVITES DE FEUX DE NUIT
MADAGASCAR 2003
CAFN 2003
Faible
Moyen
Important
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
Antsiranana
Mahajanga
Antsohihy
Sambava
Maevatanana
Maintirano
Ambatondrazaka
Fenoarivo Atsinanana
Toamasina
Morondava
Tsiroanomandidy
Miarinarivo
Antananarivo
Ihosy
Fianarantsoa
Ambovombe
Tolagnaro (Fort-Dauphin)
Toliara
Farafangana
Manakara
Ambositra
Antsirabe
100 0 100 200 Kilometres
N
EW
S
Limite des régions
#Y Chef lieu de région
The country is
devastated by fires,
at least one third per
year ( 1/3);

12. Vulnerability of soilsVulnerability of soils::
--70% of territory is
made up of relief
-200 T/ha/year is the
average erosion
rate
- Degradation costs
about US$ 150 to
300 million (WB
review 1988 ).).
I. Context

13. Socioeconomic Vulnerability
74 - 100
54 - 73
35 - 53
17 - 34
0 - 16
Indice de pauvreté
Edition: UCDD/DIE/ONE, Mars 2005
Source: Enquête Ilo 2001, BD 500 FTM,
INDICE DE PAUVRETE
MADAGASCAR 2001
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
#Y
Antsiranana
Mahajanga
Antsohihy
Sambava
Maevatanana
Maintirano
Ambatondrazaka
Fenoarivo Atsinanana
Toamasina
Morondava
Tsiroanomandidy
Miarinarivo
Antananarivo
Ihosy
Fianarantsoa
Ambovombe
Tolagnaro (Fort-Dauphin)
Toliara
Farafangana
Manakara
Ambositra
Antsirabe
N
EW
S
100 0 100 200 Kilometres
Limite des régions
#Y Chef lieu de région
•Poverty affects 74% of
population with a daily income
of $ 0,42 ( 2001)
•MAP objective is to reduce
poverty rate by 50% in 2015
•CAS recommends promoting
policies favorable to income
increase among poor people
in the concentration sector,
which will also express in
GDP increase ( Pro-poor
Policy )

14. Modelling Climate Change Impacts in Volta Basin 25Modelling Climate Change Impacts in Volta Basin 25thth
April, 2007April, 2007Direction Générale de la Météorologie
Tendance des Températures MAX à Madagascar
26,5
27,0
27,5
28,0
28,5
29,0
29,5
60 65 70 75 80 85 90 95 00 05
Année
Températures(°C)
 Temperature increases to 0.5 degree in 22 meteorological stations out of
27 over 40 years
Climate ChangeClimate Change

15. Energy Source: 80% from woodEnergy Source: 80% from wood
Fuel wood
Other sources

16. Energy Consumption: 95% of population useEnergy Consumption: 95% of population use
wood as cooking fuelwood as cooking fuel
Fuel wood or mixed
Gas-electricity

17. Proposed solution: substitution of biomass sourceProposed solution: substitution of biomass source
with sugar canewith sugar cane
Existing plantation, related to cultural
tradition
Easy to grow, fast growing and alcohol
processing is existing nationwide
Space to grow exist and forest areas to
conserve are critical
Resistant to cyclone

18. Sugar cane commodities chartSugar cane commodities chart
It is a market based program with:
◦ 1 million ha plantation to be developed with
landscape consideration
◦ 1 billion liters p.a. of cooking ethanol
◦ Plus carbon offset market
◦ And biomass waste conversion activities

19. Bio ethanol
program
Household cooking
fuel/ stove
Fuel ethanol
Generation of
electricity from
biomass
S&M éthanol
processing plant
unit : $20- $5,000
Industrial Unit
Sugar cane juice
Any local alcohol processed
Bagasse
Molasses from processing
Rough sugar cane
Large scale sugar cane plantation

20. Ethanol cooking stove modelsEthanol cooking stove models
Three models of ethanol cooking stoves
have been tested and potentially available
for manufacturing and promotion to local
consumers
These models are innovative as using a
range of ethanol going from 50% to 90%
of alcohol

21. Where we stand? Per componentWhere we stand? Per component
Component 1: Clean cooking fuel aiming at
reducing the use of fuel wood and kerosene:
studies and testing are completed and
implementation of the programme has started
such as manufacturing of stoves and setting up of
micro distilleries.
Component 2: reducing the use of fossil gasoline:
the first ethanol plant has started its construction
Component 3: contributing to electricity
generation from biomass: new technologies and
implementation plan have been completed

22. ExpectedExpected Impact on Forest managementImpact on Forest management
Illegal
logging
Number
of stoves
With respect to greenhouse gas emissions over a period of 15 years the
ethanol program will allow to avoid greenhouse gas emissions of
7.5 million tons CO2 equivalent which is more than US$ 27.5 millions
based on a market price of US$ 3.5/t of CO2.
(WB study 2010 for 240 000 households)

23. ExpectedExpected Impact on Protected AreaImpact on Protected Area
0
10
20
30
40
50
60
70
80
90
Case without
ethanolstove
Projected case
with ethanol
stove
case 1
case 2
Pressure
rate
Number
of stoves
If 10% of the urban households are using ethanol stoves this would allow
substituting a total natural forest area of about 187,424 Ha (over a period
of 15 years).
(WB study 2010 for 240 000 households)

24. ExpectedExpected Impact onImpact on
biomass energy savingbiomass energy saving
0
10
20
30
40
50
60
70
80
90
Case without
ethanolstove
Projected case
with ethanol
stove
case 1
case 2
Use of fuel
wood
Number
of stoves
If 10% of the urban households are using ethanol stoves this would
allow substituting a total charcoal consumption of about 892,139 tons
(over a period of 15 years).
(WB study 2010 for 240 000 households)

25. Impact on household healthImpact on household health
People
affected by
pulmonary
infection
Number
of stoves
The development of an ethanol program on 10% of the urban
households using ethanol stoves will avoid costs of reduced
working capacity and savings on health expenses for about 12
million US$, whereas the introduction of improved charcoal stoves
will save approximately 9 million US$.
(WB study 2010 for 240 000 households)

26. Impact on job creationImpact on job creation
Number of stoves
Number of job created
It is expected that the entire value chain will create
more than 3 millions jobs within 4 years of
implementation mostly in rural area.
(WB study 2005)

27. Impact on new state fiscal itemImpact on new state fiscal item
Number of stoves
Rate of fiscal collection
The State at different level will benefit from this initiative for
about 10% of fiscal revenue within the entire value chain .

28. Scale up approach to poverty reductionScale up approach to poverty reduction
Some activities generated by the entire value
chain:
 Raw material cultivation?
 Processing ethanol?
 Packing finished product?
 Collecting ?
 Transporting?
 Whole selling?
 Retailing activities to consumers?
 Supply of equipment and various materials?...
 Set up engineering
Simulation impact by 2015 (MDG)

29. Poverty reduction simulation WB/Min of Economy andPoverty reduction simulation WB/Min of Economy and
PlanningPlanning
(WB toolkit database reference 2008)(WB toolkit database reference 2008)
 Base case without the project 2014
Poverty rate is reduced from 70% to 62%
•With the project 2015 MDG
Poverty rate is reduced from 70% to 40%

30. ConclusionsConclusions
Important investment is not necessarily required to
reverse the degradation trend of natural resources
Full participation of the majority of the population in
poverty reduction activities would significantly slow
down pressure on PAs and common public goods.
Scaling up such activities impacts on wealth creation
and thus economical growth and would contribute to
reach MDG’s goals for the country.

31. Thank you