er_fao-ifap_csd-15

UN Commission on Sustainable Development (CSD-15)

New York, 30 April-11 May 2007

JOINT IFAP - FAO SIDE EVENT

“Bringing the benefits of bio-energy to family farmers and rural communities”

9 May 2007

IFAP co-organized with FAO, a side-event on the benefits of bioenergy production to family farmers and rural communities. More than 70 people participated in this event.

The IFAP-FAO side event was co-chaired by Jack Wilkinson, President of IFAP, and Gustavo Best, Senior Energy Coordinator of FAO.

Intervention by Mr. Jack Wilkinson, IFAP

Mr. Wilkinson outlined the important role of bioenergy production in boosting rural economies, and noted that rural poor are more numerous than urban poor. Commodity prices have been too low for too many years, said Mr. Wilkinson, creating an unsustainable situation for farmers’ incomes. They needed to go up by at least 30%. Therefore, the current increase in commodity prices was badly needed by farmers. He added that the production of bioenergy represents a huge opportunity for rural development provided that farmers are able to share in the benefits. If not, it will turn into a missed opportunity. Mr. Wilkinson said that governments should address the need to ensure a proper balance between biofuels production and food security. Finally, the IFAP President called on governments and NGOs to work together with farmers on the development of bioenergy.

Presentation by Mr. Gustavo Best, FAO International Bioenergy Platform

Mr. Gustavo Best said that the bioenergy equation is very complex and suffered from a lack of unbiased information. After describing the variety of bioenergy sources, technologies and social and scientific implications, he outlined the link with poverty reduction. He went on to say that the potential of bioenergy production is one of the biggest among the renewables. Bioenergy can play a unique role in a smooth transition from oil to renewables. Mr. Best noted that farmers are not only involved in the production of bioenergy but also in the processing of biomass.

He then presented the FAO International Bioenergy Platform (IBEP) in which IFAP is involved.

The IBEP seeks to provide equitable access to bioenergy the development of an integrated approach. Specific links have been established with other FAO programs on food security and commodities as well as with climate change mitigation, management of forests and other natural resources. The outcomes expected from this Platform include better information and analysis on access to bioenergy opportunities and options for stakeholders. The IBEP is a 6 year program.

Mr. Best concluded by saying that the development of bioenergy production has to involve farmers - regardless of farm size - in the production, processing and use of bioenergy. He added “At their best, liquid biofuels can enrich farmers by helping to add value to their products. But at their worst, biofuel programmes can result in concentration of ownership that could drive the world’s poorest farmers off their land and into deeper poverty”.

Presentation by Ms. Maria Christina Pacheco on “The Brazilian Bioenergy Experience”

In her presentation, Ms. Pacheco insisted on the sustainability of the production of ethanol from sugar cane in Brazil. Out of a total of 851 million ha of land in the country, 463 million ha are non-cultivated land, 62 million ha are used for agriculture, and the remaining 106 million ha are available for cultivation of sugar cane. She pointed out that the rainforest in Brazil is a protected area and that it is certainly not utilised for the production of ethanol. The production of sugar cane is located in the centre south of the country. In Brazil the share of renewables in the energy mix is 44.4% with energy from sugar cane representing 14.4%, the biggest share of all renewables.

Ms. Pacheco said that sugar cane growers in Brazil certainly benefit from the production of ethanol through a partnership with industrial processors. The partnership is based on the fact that sugar and ethanol are considered as pure energy and are measured in TRS (Total Recoverable Sugar). Therefore, the sugar cane is sold to processors and the price is calculated through a simple formula. The quantity of TRS multiplied by the price of TRS gives the price of sugar cane. Cane growers get a fair price for the selling of sugar cane which is not sold as a raw material.

For Brazil, the main challenges for the production of ethanol from sugar cane relate to both environmental and social aspects.

Presentation by Ms. Sarala Gopalan on “The Development of Biofuels in India”

Ms. Gopalan started by presenting the legal framework in India and the priorities of the government to maintain food security while reducing greenhouse gas emissions. She then highlighted the main decisions taken by the government of India, in particular for the mandatory blending of 5% ethanol with motor spirit (gasoline) since 2003 and the blending of up to 20% biodiesel with diesel in the transportation sector. She also mentioned the setting up of a committee on the development of biofuels at the national level, located in the planning commission. Importantly, there are multistakeholder consultations including farmers, NGOs, government departments and the automotive industry aimed at identifying tree-borne oil seeds suitable for the production of bioenergy. They selected ‘Jatropha Curcas’ for its various advantages: thriving under various climatic conditions, low gestation period, high seed yields, cleans the air, employment creation, rehabilitation of degraded land.

One of the main challenges in terms of collection and sales of seeds is to bring the oilseed collector and producers together for mutual benefit. Research organisations have already started to work with women’s self-help groups to create nurseries to produce high-quality seeds for plantations. In conclusion, Ms. Gopalan pointed out the urgency for governments to establish a comprehensive policy on prices, taxes and duties to make the venture worthwhile for farmers and entrepreneurs so as to be able to meet the blending targets.

Presentation by Mr. Bart Chilton on “The US Experience in Bioenergy Production and the Benefits for Farmers”

Mr. Chilton described how his country decided to increase energy security through encouraging national production of renewable energy. Production of ethanol started in the 70’s in response to the first oil shocks, but production was not cost-effective. However, farmers decided not to give up and invested in technology. At the same time, farmers put pressure on the Congress for the implementation of policies that encourage the growth of ethanol production. Farmers reached their goal in the mid 90’s when a “renewable fuel standard” was presented, despite initial opposition from the government. Indeed, opponents to this decision in the Congress considered this development as a threat to fossil fuel.

In the late 90’s and early 2000, fossil fuel prices rose to unprecedented levels. This led the Congress to pass the “renewable fuel standard” in 2005 (another fuel standard is under discussion). The key part of this standard is local ownership, a critical element for farmers. 10 years ago, the top 10 companies accounted for 70% of the national production of renewables. Today, this has fallen to 37%, and one hundred local plants under construction. Renewable energy is the only sector in agriculture which has experienced a reduction in the level of concentration.

According to Mr. Chilton, the biggest challenges going forward are: How to increase research in the field of renewables to support their production? How to include tax incentives for renewable energy in the new Farm Bill?

Discussion:

The discussion focused on the following points:

The importance for governments to put in place proper policies including incentives to encourage a reduction in the level of concentration in the bioenergy industry, thus encouraging benefit sharing with farmers.

The need to set up voluntary standards and criteria for ecologically-sustainable biofuels production throughout the whole chain in order to protect the environment. Farmers encourage proper regulations of the production of bioenergy in particular for biofuels.

An important challenge is to find ways to encourage a change in agricultural practices that leads to carbon storage and thus fighting desertification. The potential in this regard is huge; it concerns 3 billion farmers all over the world who are amongst the poorest populations.

Biofuels are not a “silver bullet”. However, they represent an opportunity which needs to be developed the right way through implementing the right policies.