THE EU AND PALM OIL:
WHAT’S GOING ON?
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WHAT’S GOING ON?
RSPO Roundtable 9 Kota Kinabalu, 24 November 2011
Nina Činkole
Delegation of the European Union to Malaysia
PRESENTATION OUTLINE
EU Context & Policy background
Biofuels:
EU Renewable Energy Directive (EU RED)– Sustainability criteria
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– Sustainability criteria
– Voluntary Certification Schemes
– Latest developments
– Implications for Palm Oil
– Food labelling:
EU Regulation on the provision of food information to consumers
EU Context
More than 2 Europeans in 3 see climate change as a very serious problem
Almost 80% consider that taking action to combat climate change can boost the economy
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combat climate change can boost the economy and jobs*
Push not only by the EU and the Member States but foremost by the European public
Moving towards low-carbon economy
*Special Eurobarometer 372: Climate Change (June 2011)
Climate & Energy Package (2008)
-20%
100%
-20%-20%
The 20-20-20 EU Policy
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Greenhouse
gas levels
Energy
consumption
Renewables in
energy mix
+20%
Part of the EU climate and energy package
A single, comprehensive Directive for 20% renewable energy in the EU in 2020
Combat climate change
EU Renewable EnergyDirective (2009)
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Combat climate change
Security of energy supply
Green jobs and innovation
MS Mandatory targets
Specific 10% target for renewable energy in transport
Biofuels sustainability - Have to make sure biofuels contribute to the objectives of the policy
No conversion of land with high carbon stock since January 2008 (wetlands, continuously forested areas, peatlands)
No raw material from land that had high biodiversity value from January 2008
EU RED:Biofuels Sustainability Criteria
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biodiversity value from January 2008 (primary forest, biodiverse grassland, nature protected areas)
Minimum 35% greenhouse gas emission saving compared to fossil fuel (50% in 2017 / new production 60% in 2018)
(EU raw materials must meet EU rules on agro-environmental practices)
EU RED:Biofuels Sustainability Scheme
Have to be met in order to:
To receive incentives (from individual EU Member States) and count toward the targets (10% and the 20%)
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targets (10% and the 20%)
But does not stop trade in other (‘unsustainable’) biofuels
Single scheme across the EU
Non-discriminatory, applies to both EU production and imports, all feedstocks
EU RED: How to prove compliance?
Basis for evidence of compliance:the type of raw material (+ possibly the production process)the land where it came from
Adequate standard of independent auditing needed
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neededaccording to EU Member States rules or alternatively the Commission can accredit ‘voluntary schemes’ (or international agreements)
June 2010 European Commission published further Guidelines on:
practical implementation of the criteriavoluntary schemesfuture updating of ‘default values’
EU RED: GHG Savings Figure
Can be obtained by:Calculation of ‘actual value’ according to the methodology; or
Using ‘default value’; or
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Using ‘default value’; or
A combination of both
‘Default values’ Predetermined values in Annex V of the Directive
Set at conservative level
To reduce administrative burden
For different typical types of biofuels
Annex V, part A, of the Renewable Energy DirectiveTypical and default greenhouse gas emission
savings for biofuels
if produced with no net carbon emissions from land-
use change
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Directive available at http://ec.europa.eu/energy/renewables/index_en.htm
Economic operators can show compliance through:
– Actual values / Default values / Bilateral Agreement or
Voluntary Schemes
Voluntary schemes can apply for recognition at the EU
EU RED:Voluntary Certification Schemes
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Voluntary schemes can apply for recognition at the EU
level
– Applicable across the 27 EU MS, for 5 years
Guidelines on voluntary schemes (June 2010)
Two-step process:
1. Analysis by responsible service in the European Commission,
and dialogue the scheme
2. Consultation within the Commission and with Member States
June 2011: First seven voluntary schemes recognised
All types of biofuels:– ISCC (International Sustainability and Carbon Certification)
– RSB EU RED (Roundtable on Sustainable Biofuels)
– 2BSvs (Biomass Biofuels Sustainability voluntary scheme)
EU RED: Recognised Voluntary Certification Schemes
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– 2BSvs (Biomass Biofuels Sustainability voluntary scheme)
Feedstock- and area-specific:– Bonsucro EU (sugarcane-based ethanol, esp. Brazil)
– RTRS EU RED - Roundtable for Responsible Soy (soy-based diesel,
esp. Argentina and Brazil)
– RBSA – Abengoa RED Bioenergy Sustainability Assurance (ethanol,
globally)
– Greenergy Brazilian Bioethanol verification programme (sugarcane-
based ethanol in Brazil)
RSPO applied for recognition and is at an
advanced stage of the first step
Would be the first voluntary certification scheme
EU RED:Recognition of RSPO RED?
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Would be the first voluntary certification scheme
specifically for palm oil
December 2010: Report on Indirect Land Use Change (ILUC)
– ILUC can have an impact on the GHG savings of biofuels
– Deficiencies and uncertainties of the modelling
EU RED: Other recent developments
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– Deficiencies and uncertainties of the modelling
– Further work / Legislative proposal?
January 2011: Reporting Guidelines
– Additional information to be reported in addition to
meeting sustainability criteria
– Mainly focusing on whether a certificate of a recognised
voluntary scheme is used / bonus
EU RED:Expected implications for Palm Oil
No change for crude palm oil imports
No change for palm oil for non-fuel
Incentives for sustainably produced biofuels
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Incentives for sustainably produced biofuels
No trade ban, other biofuels can still be
imported
Palm biodiesel can be eligible for incentives - if
produced under the right conditions
FOOD LABELLING: EU Regulation on the provision of
food information to consumers
To facilitate the choice of consumers to make balanced and healthier dietary choices
To enter into force at the end of November, most rules applicable three years after that
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most rules applicable three years after that
Some of the main changes:– Mandatory nutrition declaration– Allergens to be highlighted in the ingredient list.– Origin of foods specified (for fresh meat from
pigs, sheep, goat and poultry)
FOOD LABELLING: Regulation and Palm Oil
Vegetable oils:
consumers will in future be informed about the sources of vegetable oils
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the sources of vegetable oils
Oils of vegetable origin:– may be grouped together in the list of ingredients under
designation “vegetable oils”
– followed by the indication of the specific vegetable origin
– on the basis of total weigth of the oils present
ALL vegetable oils
CONCLUSION:Where does it all lead?
Legislation and consumer concerns in the EU (and elsewhere) contribute to the promotion and uptake of certified sustainable palm oil
Palm Oil
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Palm Oil
– Can be creator of sustainable growth and employment
– Competitive fuel source for the world economy
– Potent contributor to a better climate
As long as it is produced sustainably...
Thank you!Thank you!
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[email protected]@eeaseas.europa.eu .europa.eu http://eeas.europa.eu/delegations/malaysia/index_en.htmhttp://eeas.europa.eu/delegations/malaysia/index_en.htm
http://ec.europa.eu/energy/renewables/biofuels/biofuels_en.htmhttp://ec.europa.eu/energy/renewables/biofuels/biofuels_en.htm
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