World Bioenergy AssociationInitiative of WBA to develop fossil fuel exit strategy and expand biomass energy worldwide as a tool to

combat climate change

President of WBA Remigijus LapinskasKyiv, Ukraine 2016.09.20

Content

1. Paris Agreement and Future Role of Bioenergy

2. Fossil Fuel Exit Strategy (FES)

3. Role of Bioenergy

4. Main Drivers of Bioenergy

5. Carbon tax as Key Tool For Energy Transition

6. About WBA

The Paris Agreement

COP21 in Paris

• 195 countries agreed on a Climate Deal in Paris in December 2015

• Key issues discussed at the meeting• New climate targets

• A dynamic process

• Financial support to developing countries

• Bottoms up approach using INDC’s (Intended Nationally Determined Contributions)

• Continuous evaluation period

COP21 in Paris

• Targets• Global temperature rise well below 2°C and pursue efforts to limit the

temperature increase to 1.5°C above pre-industrial levels (Art. 2)

• To achieve a balance between anthropogenic emissions by sources and removals by sinks of GHG in the second half of this century (Art. 4)

• Developed countries taking the lead in emission reduction targets (Art. 4)

Meaning for Europe: Stop using fossil fuels before 2050!

Meaning for World: Stop using fossil fuels shortly after 2050!

Fossil Fuel Exit Strategy (FES)

Why a FES?

• CO2 concentrations are increasing steadily:• 1950: 315 ppm• 1980: 340 ppm• 2015: 400 ppm

• For a 2 degree target, the threshold is 410 – 420 ppm (2 ppm annual increase)

• We should stop the flow of fossil carbon dioxide into the atmosphere.

CO2 concentrations

• To follow the Green line (Check Graph) as the target for reducing concentration, we need a dramatic reduction of fossil fuel emissions globally

FES (1990 – 2050)

World Fossil Energy (EJ)

CO2 emissions (Mt CO2)

2010 427 30 190

2013 463 31 646

2030 Target 311 21 257

2050 Target 41 1 716

We need an exit strategy for fossil fuels as early as 2050!!

2035 – A milestone

• In 2035, it is assumed that an increased demand of energy would be 10%

• COP21 in Paris assumes that:• Halving of fossil fuel use• Tripling of renewables use

• So, estimate for 2035, the renewables should be 265 EJ

• More than doubling of bioenergy

• 18 fold increase in other renewables (solar, wind, geothermal etc.)

Bioenergy is one of the pillars of future energy system

2013 2035

Fossils and nuclear 310 155

Renewables 78 265

Total 382 420

Final energy in 2035 in line with Paris Agreement (in EJ)

2013 2035 Annual growth

Bioenergy 57.6 122 3.4%

Hydro 13.6 23 2.3%

Other renewables 6.7 120 13.8%

Total 77.9 265 5.7%

The role of bioenergy

Composition of bioenergy

Main sector Sub sector Examples

Agriculture Dedicated crops -main product Crops for biofuels, energy grass, short rotation forests, other dedicated crops for

energy

By-products and residues Herbaceous by-products: straw cereals, rice, cornstalk, bagasse, empty fruit

bunch from oil palm,

Woody biomass: pruning and regenerating orchards, vineyards, olive plantation,

oil palm plantations,

Other forms: processing residues such as kernels, sunflower shells, rice husks,

manure from animal production

Forestry Main product Stems, wood fuel from forests or trees outside forests, from landscape cleaning

By-product Residues of forest harvest (branches, tops) residues of wood industry (bark, saw

dust, other wood pieces, black liquor, wood chips, recycled)

Organic Waste MSW (Municipal Solid Waste), food waste, waste from the food industries,

sewage

Global contribution of bioenergy

• Main increase in contribution of bioenergy for 2035 will be in agricultural residues/by products, dedicated energy crops and later in the forestry industry

• Waste is another prospective sector for increasing bioenergy generation

Main sector 2012 2035

Agriculture 5.6 69

Forestry 48.9 65

Organic waste 1.7 6

Total 56.2 140

Biomass for primary energy (in EJ)

Bioenergy – leading technologies

• Combustion – all sizes• Combustion in combination • with steam technologies for electricity• With ORC technologies for electricity• Thermal Gasification – all sizes• Anaerobic gasification: biogas• Fermentation: sugar to ethanol as transport fuel• Esterification: vegetable oil to esters as biodiesel• Advanced biofuel technologies: cellulose to sugar• Others: treatment of biomass such as baling, chipping, pelletizing,

pyrolysis, torrefaction to get better energy carriers

Bioenergy – Benefits

• Renewable, carbon neutral, big potential

• All forms of final energy: heat, electricity, transport fuels

• Stable supply

• Stored solar energy, very low cost of energy storage

• Tremendous Job creation in rural areas

Deployment of bioenergy

Drivers and Obstacles

• Drivers:• Developing world: demand for energy for basic needs: cooking!

• Developed world: government policies, economic benefits; main markets: heat, transport fuels!

• Obstacles:• lack of knowhow, experience, technology, low prices of fossil fuels,

competition by fossil fuels and other users, missing government policies, missing support for agriculture and forestry

Carbon tax as a key tool of energy transition

Carbon taxes

• Carbon taxes is taxes per ton of fossil carbon dioxide emission

• To avoid an increased tax burden, new carbon taxes should come hand in hand with the reduction of other taxes (e.g. income)

Low Oil Price Opportunity

• Low oil prices• Consumers invest more into fossil fuels

• A contradiction to climate mitigation

• Threat to climate policy

Low oil prices are a unique chance to introduce or raise carbon taxes

worldwide

Oil price drop from 120 US $/barrelto 40 US $/barrel

Development of Carbon dioxide emissions

• Globally, 2015 saw another increase in carbon dioxide emissions

• EU 2015• Slight increase of 0.7% in emissions

• Emissions were declining since 2010

• Increased again in 2015• Main increase: Slovakia, Portugal, Hungary, Belgium (+ 4 to 9 %)

• Main decrease: Malta, Estonia, Denmark, Finland (- 5 to 16%)

• Low oil prices lead to increasing emissions

Need for carbon taxes

• Past (2010 – 2013)• Use of fossil fuels increased by 36 EJ (almost 9%)• Oil price was high: 95 - 125 US $/barrel

• Current (2016)• Oil price dropped to 40 US $/barrel

• Conclusion• Without carbon tax, it is impossible to achieve Paris agreement• In many countries, emissions will not decline, but instead will grow• In the next decade, the window of opportunity to reach Paris Climate Targets

will be gone for centuries

Introducing carbon taxes

• Three levels of countries• Countries that have already carbon fees or taxes – they should increase now

the existing carbon fees or taxes

• Countries with no taxes on carbon emissions should introduce them now, before oil prices climb again

• Countries with subsidies on fossil fuels or state guaranteed prices should take away the subsidies step by step now

Carbon emission fees are the most efficient tool to combat climate change!

Benefits of carbon taxes

• Benefits 1• They increase the price of fossil emissions, penalize fossil fuels and thus favor

renewables and energy efficiency• Carbon taxes address all Individuals and enterprises, they make better choices for

our common future, they have clear signals to reduce fossil fuels, to save energy or go for renewables.

• Trading schemes only address parts of the economy.

• Benefits 2• Carbon fees increase energy bills for poor and rich people, however wealthy people

use the most energy – using bigger cars, larger houses, travelling more! In addition, part of the revenue can be used to help poor people.

• Carbon dioxide fees also help to create new jobs by new investment in energy efficiency or renewable energy

• They help to prepare the economy and consumers for future times with higher energy prices

How to introduce Carbon taxes

• The best way would be a common European or global level – but this is just unrealistic!

• Every government should act on its own, not waiting for an European or global agreement!

• Several countries already used the situation to act in this way: India, Portugal, also France, Sweden to give a few examples!

Carbon taxes and bioenergy

• Plants are absorbing carbon dioxide from the atmosphere, therefore bioenergy does not pay carbon taxes. But carbon taxes make the use of fossil fuels in the production and transport of biomass more expensive. A reason to replace them by renewable sources also!

• Altogether, carbon taxes improve the competitiveness of bioenergy in the heating and transport sector.

• At the present oil price situation carbon taxes are essential to strengthen the bioenergy industry

Conclusion

• A carbon tax in all developed countries instead of emission trading and a stop to all subsidies of fossil fuels worldwide.

• More attention to the support of sustainable agriculture and forestry and land use worldwide!

• Awareness building, technology transfer, training, education, financing

• A Fossil Fuel Exit Strategy – halving the use of fossil fuels by 2035

• Global Renewable Energy Action Plan (GREAP), supplemented by• Continental Action Plans (CREAP) by

• State (National) Action Plans (SREAP) and by

• Regional Action Plans (RREAP)

About WBA

About WBA

• World Bioenergy Association (WBA) is the global organization dedicated to supporting and representing the wide range of actors in the bioenergy sector. Our members include bioenergy associations, institutions, companies and individuals.

• WBA has been working to address a number of pressing issues including certification, data, knowledge and technology transfer, impacts on food, water and land use, and promoting bioenergy on a global level

• Mission: Promote the increasing utilization of bioenergy globally in an efficient and sustainable way and to support the business environment for bioenergy.

• Webpage: www.worldbioenergy.org

Organization

• Governed by the board• 19 board members• 17 different countries – Lithuania, Germany, Canada, Australia, Kenya, Turkey, Brazil,

Belgium, Singapore, Austria, Malaysia, Japan, Sudan, Sierra Leone, USA, China, Sweden

• Representing all sectors of bioenergy from all continents• Industrialists, researchers, farmers, consultants etc.

• Secretariat• President – Remigijus Lapinskas (Lithuania)• Office – Karin, Bharadwaj, Remigijus, Viktorija, Pranav, Johanna

• Membership• More than 200 members from 50 countries

Main activities

• Global Bioenergy Statistics

• Bioenergy Equipment Directory

• Factsheets

• Country mission reports

• Setting up bioenergy associations

• Workshops, webinars and side events

• Bioenergy action plans

• Sustainability label

Events

• Conference: ‘Pyrolysis oil’. Rotterdam. 2016

• Webinar: ‘Torrefied Biomass’. 2016

• UNFCCC COP21 Side event: ‘Integrated technologies towards 100% renewables: case studies at local, country and regional levels’. France 2015

• REN Alliance webinar: ‘Renewables working together: Renewable energy systems and synergies’. Webinar 2015

• UNFCC COP20 Side event: ‘Success in Paris: Mapping a path towards 100% renewables’. Peru 2015

• Roundtable: ‘Roundtable on bioenergy issues and options’. India 2014

• Workshop: ‘Reducing EU dependence on natural gas’. Belgium 2014.

Collaborations

• Accredited observer, UNFCCC

• Accredited observer, Green Climate Fund

• Liaison, ISO PC 248

• Steering Committee member, REN21

• Member, REN Alliance

• Founder, 100%RE campaign

• Other collaborations – IRENA, Alliance for rural electrification (ARE), Bioenergy Insight, Bioenergy International, Future Is Clean, Energy Business Review

Current activities

• Lead Author, Bioenergy Chapter, World Energy Resources, World Energy Council

• Factsheet• Published 2016 – global potential of biomass towards 2035, improved bioenergy cookstoves

• To be published – pyrolysis oil, waste to energy, biomass logistics, peat

• Country mission report – Turkey (2016), Lithuania (2016) and Japan (2017)

• Bioenergy Statistics 2017

• Report – Role of bioenergy in European cities

• Working Group – Biofuels strategy towards 2035

• Bioenergy Equipment Directory – 36 companies and counting

• COP22, Morocco

Enerstena Group – OFFICIAL Supporter of WBA

Thank you!

World Bioenergy Association

Holländargatan 17, 111 60, Stockholm, Sweden

info@worldbioenergy.org

www.worldbioenergy.com