ILUC mitigation illustrated for regional case studies Dr. Birka Wicke Copernicus Institute of Sustainable Development Utrecht University Overview of presentation • Concept underlying ILUC mitigation • Two key ILUC mitigation options • Increased yields • Under-utilized land And their overall results (incl. two more measures) • Policy & governance options to mitigate and even prevent ILUC Concept underlying ILUC mitigation • Given the interlinkages between economic sectors and activities that enhance ILUC, key to addressing ILUC is an integrated view on land use accounting for the various uses of land for food, feed, fiber and fuels. Concept underlying ILUC mitigation • Several options exist with which ILUC can be mitigated and even prevented. • These options relate to resource efficiency in both the biofuel supply chain AND the entire agricultural sector What are the options? • Increasing agricultural yields (today focus on crops, but we also looked into livestock) • Use of biofuels co/by-products • Increased chain efficiency • Bringing under-utilized land into production and demarcating land that should not be converted Why regional case studies? If a region can demonstrate that it can produce additional biofuels while • Guaranteeing other production for food, feed and fibre, and • Not expanding on high carbon stock land, then biofuel production in that region does not cause ILUC. Assessment of regional low ILUC risk biofuel production potential • To define feasible and desirable biofuel production targets per regions • To rank ILUC mitigation measures & their importance for different regions à to define regional strategies for ILUC prevention General approach t targe baseline current Assessment of ILUC prevention measures • Scenario approach to indicate uncertainty in projections (depends also on the level of investment) and effects on results • Three scenarios (low, medium, high) low medium high Regional case studies Three case studies in Eastern Europe • Eastern Romania (macroregion 2): rapeseed biodiesel • Hungary: corn ethanol • Lublin province, Poland: miscanthusbased ethanol Regional case studies One case study in SE Asia • Northeast Kalimantan, palm oil biodiesel 1. Increasing yields Potential of increasing crop yields to mitigate ILUC • Illustration of our approach with case study on East Romania Calculation 1. Assess yield developments of all major crops 5 Other crops Rapeseed yield (t/ha) Rapeseed yield (yt/ha) Rapeseed ield (t/ha) Rapeseed yield (t/ha) 4.5 7.5 4 6.5 4 3.5 5.5 3.5 3 2.7 4.5 2.5 2.5 3 3.5 2 2.3 2.5 1.5 2.5 2.1 2010 2 1.5 1.9 2010 1.5 1.7 2010 1.5 2010 Maize Given 2020 producPon volume is fixed based on MIRAGE projecPons Wheat Rapeseed 2012 2014 2016 2018 (MIRAGE b2016 ut target yield?) 2012 Baseline 2014 2018 Low Baseline (MIRAGE but target yield?) 2012 Medium 2014 2016 2018 Low Baseline High (MIRAGE but target yield?) Medium 2012 Low 2014 2016 2018 High Medium Baseline High Low Medium 2020 2020 2020 2020 High 2. Calculate land area that could be made available for biofuel production (through yield increases) Increased yields – East Romania § Example rapeseed yields This is rapeseed but we did the same for all other major crops Increased yields – East Romania • Land area available for biofuels Scenario Land area for biofuels Extra production % regional NREAP** Low 71 Rapeseed B i o d i e s e l * (kton) (TJ) 35 510 Medium 415 214 3,100 66% High 727 457 6,624 142% (kha) 11% * Rapeseed is part of crop rotation and assumed to be produced only every 4 years (=only ¼ of the land is used) ** % regional NREAP refers to the share of the NREAP allocated to East Romania (based on ag land) In all cases: Increasing yields has a huge potential to reduce the land area needed for meeting the baseline demand (without biofuels) Creating space for biofuel production Easy picks of regions for yield improvements? • Yes, BUT these are the regions that are expected to see large increases in production in the future. • Regions with already high yields also have potential to increase yields further (though less dramatic changes). But very large increases in production are also not expected there. 2. Under-utilized land & land zoning Under-utilized land & land zoning • Different from previous measure because it is not about getting more from the existing land. • It is about finding out what non-ag land is available and suitable for biofuel production. • And it is about what land should be excluded. Approach • Assessment of type of land potentially available (degraded, abandoned, marginal, unused…) • Plot size: when is it economical - >2, 5, 10, … hectare? • Suitability for biofuel crops • Land zoning: carbon stocks, protected areas, current use • Yields Under-utilized land & land zoning: Illustration for NE Kalimantan • Degraded land – vague term and not properly defined à difficult to measure it in the field • Degraded forest? • Imperata grasslands? • Deforested land not in use? Illustration for NE Kalimantan • World Resources Institute developed the Suitability Mapper in order to help identify potentially suitable sites for sustainable palm oil production • We applied this tool to assess under-utilized land areas in this case study Criteria for suitability & availability • No peatland is allowed to be used and conservation area buffer of at least 1000m is applied in all scenarios Scenarios Low and settings Medium High Slope and elevation Conditions where additional measures are needed WRI default settings Rainfall Soil drainage Optimal growth conditions Land cover Existing agriculture may not be displaced Illustration for NE Kalimantan • Ground truthing: is all of this really available? • For West Kalimantan, WRI estimated that only 41% of the area determined by the suitability mapper is actually also available (Gingold et al., 2012). • The same percentage was applied here for NorthEast Kalimantan. • The actual portion for North-East Kalimantan needs to be determined by field checks. Illustration of NE Kalimantan • Results Scenario UnderExtra CPO utilized land production (Mha) (Mt) Low 0.85 3.4 Medium High 0.99 1.70 3.9 6.8 (current production: 0.4 Mt) 4. Overall results Remember the overall picture – if ILUC mitigation measures allow the same production, then ILUC can be prevented Overall picture – E. Romania Land made available by ILUC prevention measures, 2020 (Mha) Total land use according to MIRAGE (Mha) 1 0.8 0.16 Mha needed 0.6 0.12 – 0.94 Mha 0.4 available 0.2 0 Low Medium High Co-products Under-utilized land Above baseline yield Overall picture - Hungary Land made available by ILUC prevention measures, 2020 (Mha) Total land use according to MIRAGE (Mha) 1.2 1 ~ 0.27 Mha needed 0.5 - 1.1 Mha available 0.8 0.6 0.4 0.2 0 Co-products Under-utilized land Above baseline yield Overall picture - NE Kalimantan Land made available by ILUC prevention measures, 2020 (Mha) Total land use according to MIRAGE (Mha) 0.50 2.0 0.45 e n i l e Bas 0.40 Current 0.35 0.30 2008 ~ 0.29 Mha needed 0.8 - 1.8 Mha available 1.5 1.0 0.5 0.0 2012 2016 2020 -0.5 Co-products Above-baseline yield Under-utilised lands & zoning Translation to biofuels targets Hungary (corn) E. Romania NE Kalimantan (rapeseed) (palm oil/CPO) 7.2 0.28 0.4 Additional ILUC free production by 2020: low - high (Mt) 2.5-7.3 0.2-1.9 2.4 – 8.1 MIRAGE projection 2020 for EU biofuel target* (Mt) 0.9 0.15 0.18 Ratio ILUC free potential : MIRAGE projected production (low – high) 3–8 Current production (Mt) 1 – 13 13 - 45 * The MIRAGE projections are disaggregated based on current agricultural land area Analysis of ILUC mitigation measures shows that additional biofuels can be produced without displacing other uses and functions But we need to work (hard) to implement these measures… How to reach suggested yield increases? Focus on entire agricultural sector à Knowledge and capacity building (e.g. seed quality, fertilizer use, machinery) à Improve availability & access to high-yielding seeds/planting material, fertilizer & technology (incl. capital) à Incentivize investments: long-term contracts/price guarantees? § 34 Under-utilized land and land zoning • Lack of detailed data on land cover & use • Kalimantan: what is status and quality of land zoned for production? Where are forests? • E Europe: natural afforestation of abandoned areas? Where are under-utilized land areas? Who owns them? à Improve land use, cover & soil information (spatially and temporally detailed) à Make more informed decisions on land zoning à Improve monitoring & enforcement à Incentivize forest maintenance Concluding remarks • Multiple measures that together lead to ILUC prevention and better performance of agricultural and biofuel supply chains Sustainable intensification of agricultural production (increased yields) Use of under-utilized land & land zoning (Optimal use of co-products) (Increased efficiency in supply chain) Prevention of ILUC My simple message to take home • ILUC can be prevented if we take an integrated perspective on land use for food, feed, fibre and fuels and increase productivity and resource efficiency in the production for all of these purposes ILUC Prevention Project • Spring 2013 – end of 2014 • Results to be published end of Nov/beginning Dec 2014 • Funding: • Dutch Ministry of Infrastructure and the Environment • Netherlands Enterprise Agency • Rotterdam Climate Initiative • industry partners: ePURE, MVO/Fediol, NesteOil, Shell Thank you for your attention! Contact information: b.wicke@uu.nl http://www.uu.nl/staff/BWicke UU Birka Wicke Carina van der Laan Marnix Brinkman Sarah Gerssen-Gondelach RUG André Faaij Extra slides Yields – Scenarios E. Romania Scenario Low Extrapolating the crop-specific linear yield trend in Eastern Romania of the period 1990-2012 to 2020. Yield data is taken from the National Statistics Office. Medium Best counties For each crop the yield of the best Eastern Romania county is extrapolated to the whole macroregion. Data are taken from Eurostat and the Romanian National Statistics Office. High % Poland Ratio of the maximum attainable yield and actual yield currently achieved in Poland applied to the maximum attainable yield in Romania. 41 Yield trend Eastern Romania Description Increased yields – Hungary Example corn yields Land freed Scenario Land freed from food production (kha) Low 343 Medium 466 High 659 Increased yields – NE Kalimantan Example FFB yields Land freed Scenario Land area for additional biofuel (kha) Low -75 Medium 37 High 44 Increased yields – Lublin Example wheat yields Land freed Scenario Land freed from food production (kha) Low 95 Medium 220 High 413 You might also argue that increased yields could have other negative effects 1. Rebound effect Publication by Carrasco et al. in Science, Oct 2014 But the case studies illustrate that we need to address all agriculture and forestry: land savings come from various crops § 45 Land savings come from increased productivity in the agricultural sector as a whole– not one crop alone § Example Romania – land saved by different crops Scenario Land saved from food production (kha) Maize Wheat Rapeseed Other crops Low 71 28 34 23 -14 Medium 415 210 88 32 86 High 727 468 155 70 34 § Significance of maize & wheat also as a result of currently large area in use You might also argue that increased yields could have other negative effects 1. Rebound effect If yields of all crops are further advanced, rebound effect will be negligible. § 47 You might also argue that increased yields could have other negative effects 2. Agricultural intensification • For example, increased fertilizer application à more GHG emissions • Often it is not about more fertilizer/ agrochemicals but about optimizing fertilizer application (timing & frequency, how much of what component) • Western Europe has shown that output can increase with decreased inputs à Sustainable intensification of agriculture § 48 Under-utilized land 3. Use of biofuel co/by-products Use of biofuel co/by-products • Optimized use of co/by-products increases per hectare output • Typical examples are DDGS from corn/ wheat ethanol or meal from oil seeds, • But there are lots of other useful coproducts (e.g. glycerin, straw/stover, EFB, palm trunks, POME,…) Co-products: Important aspects for calculations • What are the co-products and how are they used? • What is the production ratio of coproduct? • In what livestock sector is it used? • What does it displace? • Depends on which livestock sector (dairy vs. meat cattle, pigs, poultry) and on where it is used • Replacement rate? Co-product use – Illustration for Hungary • Co-product: corn DDGS • Use: livestock feed • Production ratio: 0.3 t/t corn • Used in livestock sector: dairy and beef cattle, poultry, pigs (varies across studies) • What does it displace: corn, soymeal, rapeseed meal, sunflower meal (division depends on location & animals) • Replacement rate: Depends on what is crop displaced & what animal is getting it (varies across studies) Co-product use – Illustration for Hungary • Development of three scenarios (low, medium, high) based on a combination of what it displaces, replacement factors, and division to livestock sectors Co-product use – Illustration for Hungary • Development of three scenarios • Low: DDGS replaces marginal source of protein (imported soy meal), low domestic savings • Medium: US data on division to sectors; replacement following Hungarian feed tests. • High: DDGS replaces an energy crop (barley), high domestic savings. Co-product use – Illustration for Hungary Scenario Domestic Land savings land savings abroad (k ha) (k ha) Low Medium High 0 23 49 37 16 0 Based on less imports of soybean/meal Important benefit, but outside of the region and therefore not included in the remaining calculations Co-products Substitution rates of DDGS to maize and Soybeans. The numbers are livestock sector specific. This means the total substitution is the sum within one livestock category. Replaced amounts in t/t DDGS. Beef Maiz e L a b o r d e [5] b W i s n e r .99 [32] H of f m a n 1 & Baker #1 [33] H of f m a n 1.2 & Baker #2 [33] Universit y o f Pannonia [34] cattle Dairy cows Poultry Pigs S o y Maiz S o y S u n f l o w e r R a p e Maiz S o y Sunflow Maiz S o y meal e meal meal meal e meal er oil e meal .11 .51 .05 .21 .22 .45 0 .60 .21 .77 .11 0 .45 .55 .51 .50 .89 .10 0 .73 .63 .61 .44 .70 .30 .61 .44 .59 .38 0.38 0.31 .56 .27 -0.05a Co-products • Division of the DDGS to four livestock sectors Scenar Description io Labord In the report of Laborde the assumed division e between cattle and other livestock is almost equal. Curren Based on the data by Wisner [32], the average t division to the livestock sectors in the period divisio 2009-2012 will be used. n US Cattle Pannonia indicated the product is marketed at use in the cattle sector. Therefore a scenario with only use for beef cattle and dairy cows, the ratio between these is the ratio in occurrence in Hungary, see Table 18. Beef All DDGS is used in the beef sector. % % % % beef dairy poultry pigs 50% 50% Dairy Pigs 53% 34% 5% 7% 45% 55% 0% 0% 100% 0% 0% 0% All DDGS is used in the dairy sector. 0% 100% 0% 0% All DDGS is fed to pigs. 0% 0% 100% 0% 0% 0% 0% 100% Poultry All DDGS is used in the poultry sector. Co-product use • Co-products DDGS and oilseed meal are already used efficiently (how much they contribute to ILUC mitigation depends on how they are used) • Some co-products palm oil chain seem to be under-utilized (EFB & POME) and polluting when not managed properly (POME) à National waste management regulation • Co-products from miscanthus to ethanol case still some unknowns à More research is needed to allow optimal use
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