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Copernicus Institute of Sustainable Development

Sustainability regulation for solid biomass for energy in NL, BE & UK

Dr. Martin Junginger Copernicus Institute, Utrecht University Conference on Biomass and Sustainability

19 October 2015, Copenhagen, Denmark

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Short history of sust. criteria for solid biomass 2010 EU recommendations to MS to follow more or less the biofuels criteria:

• GHG accounting to include end-use

conversion, small bioenergy installations (below 1 MW) to be exempted & biomass origin and quality in small-scale uses (e.g.

households) to be monitored by MS

• Ongoing review of the effectiveness of such

approach, considering new market and policy

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Overview of national policies

Four countries in EU with (development of) governance frameworks for solid biomass

1. Belgium (Flanders/ Walloon regions): Binding legislation since 2002

2. United Kingdom: legislation in place since 2013, closely following EC recommendations

3. Netherlands: Sustainability criteria to be developed, including carbon debt and iLUC, for co-firing of solid biomass in National energy agreement (sept 2013).

4. Denmark: industry agreement (covered by next speaker)

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Overview of National Schemes

Country Schemes & Aims

Belgium

Green Certificates

- Support renewable energy & optimise GHG emissions

Denmark

Industry Agreement

- Ensure sustainable use of solid biomass

The Netherlands

Energy Accord, Contracts for Difference (SDE+) – Support production of sustainable energy from biomass

The United Kingdom

Renewables Obligation, Renewable Heat Incentive, Contracts for

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UK

Sustainability

Criteria Details

1. Fuel Classification

Clarify what exemptions available for reporting against the sustainability criteria

2. Land Use

2.1 Timber Standard - In accordance with EU Timber Regulation

- Sustainable harvesting rates, biodiversity protection & land use rights for indigenous people

2.2 Land Use - Derived from RED

- Land category: to clarify compliance 3. GHG emissions - A minimum of 60% GHG emission saving (2017) compared with

1990 level, to increase to 75% saving by 2025 - GHG calculations: follow methodology defined in Annex V of RED

(emissions from collection process to processing, transportation and distribution stages)

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UK

Reporting requirements Details – for generators over 50 KW

Monthly reporting

Report against land use/ timber standard criteria and GHG criteria

Annual reporting

Provide sustainability audit report (TIC ≥ 1 MW)

Recognition of voluntary schemes

Land criteria

(land use/ timber standard)

- Category A evidence: FSC and PEFC - Category B evidence: through collection of bespoke evidence

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Belgium

Sustainability

Criteria Details

1. Fuel Classification

- wood, waste wood and wood pellets: sustainably sourced; no commercial value

2. Land Use Not included

3. GHG emissions Differ between regions (Wallonia & Brussels-capital region, Flanders) Wallonia & Brussels - GHG reduction regarding biomass fed for electricity production Flanders - GHG reduction regarding efficiency of green energy production

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Belgium

Reporting requirements Details

Quarterly reporting - Wallonia

Report electricity production to receive GCs grant

Annual reporting – Flanders

Submit specific number of GCs to Vreg to prove compliance with certificate obligation

Recognition of voluntary schemes

Land criteria

(land use/ timber standard)

- Recognition of FSC, PEFC certification schemes

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Danish Industry Agreement

Sustainability

Criteria Details

1. Fuel Classification

- Not defined

2. Land Use Only timber standard included

Legality; biodiversity/ecosystems protection; maintenance of forests’

productivity; forest health & functioning; labour rights

3. GHG emissions Reduction percentage follows EU guidelines & UK on GHG emissions reductions - GHG reduction: 70% (2015) and 75% (2025) - GHG emissions calculation: to be decided

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Danish Industry Agreement

Reporting requirements Details

Annual reporting

- For generators ≥ 20 MW

Recognition of voluntary schemes

Land criteria

(land use/ timber standard)

- Recognition of FSC, PEFC certification schemes

Land Criteria & GHG emissions

- SBP

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Source: Peter-Paul Schouwenberg, RWE Essent

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Source: Peter-Paul Schouwenberg, RWE Essent

Start year project

# years of pellet mill certification

Forest certification required starting in …

Required for nr of years

2015/16 6 2021/22 2

2017/18 5 2022/23 3

2019 4 2023 4

2020 3 2023 5

>2020 0 2021 8

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Source: Peter-Paul Schouwenberg, RWE Essent

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Dutch Energy Agreement

Sustainability

Criteria Details

1. Fuel Classification

- Defined for biomass both originating from agriculture and forests 2. Land Use - Forest biomass: legislation & regulations; ecological, economic &

management aspects; CoC - Agricultural & waste residues: mainly about compliance with

legislation & CoC

3. GHG emissions - Requirements for GHG emissions reductions; conservation of carbon stocks; ILUC - Average> 70% savings, each batch >60% savings

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Dutch Energy Agreement

Reporting requirements Not yet published

Recognition of voluntary schemes – not yet published New verification protocol will provide more guidance on

methods and indicators to demonstrate compliance with the principles and indicators.

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Overview

National Support Schemes for Solid Biomass

RO, RHI, CfDs - UK GCs - BE IA - DK EA - NL

I. Strictness of certification Mandatory Mandatory Voluntary Mandatory II. Timeline of implementation End of 2015 Already

implemented

2016 In 2 years time?

III. Sustainability Criteria Coverage

A. Greenhouse Gas Emission

B. Land Criteria:

- Fuel classification ±

- Timber Standard

- Sustainable Forest Management ±

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Overview

National Support Schemes for Solid Biomass (continued)

RO, RHI, CfDs - UK

GCs - BE IA - DK EA - NL

III. Sustainability Criteria Coverage

- Carbon debt

C. Cascading biomass

D. Compliance with other related laws &

local rights

±

E. Chain of Custody

F. Mass balance

V. Recognition of other voluntary and obligatory international schemes

Legend

Covered

± Partly covered

To be covered in the future

Not covered

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GHG emission calculations

RO, RHI, CfDs - UK GCs - BE IA - DK EA - NL

Calculation Follow BioGrace II tool &

based on EU SWD 2014*

Own method Follow BioGrace II tool & UK approach

To be identified – based on EU SWD

2014 Limit (compared with 1990

baseline level)

60% (2017) – 75% (2025)

No limit (?) 70 % (2015) – 75 % (2025)

70% / 60% for indiv.

batches Time of Implementation End of 2015 Already implemented 2016 To be identified Possible harmonisation? - Calculation method and emissions limits in Danish, Dutch and the UK schemes

are comparatively aligned: Follow BioGrace II tool & based on EU SWD 2014 - Implementation timeline needs to be further identified in Danish IA and Dutch EA

Harmonisation possible?

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Harmonisation possible?

• SFM certification: strongly depending on eligibility of existing schemes in the

different countries. “FSC or equivalent”

main issue in the Dutch negotiations for the past 2 years; full forest certification after 2023 challenging

• Carbon Debt: Dutch approach first attempt to tackle the issue, EU & UK developments to be awaited

• Competition between use for materials

and energy: different Belgian and Dutch

approach

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Discussion points

• Current developments will likely hinder international wood pellet trade; industry- developed SBP system will need to evolve

• Leakage possible: imports from US &

Canada are increasingly also used for small—scale residential use (e.g. Italy)

• Same in the sourcing areas themselves (e.g.

use of legal but ‘unsustainable’ biomass in

the US, sustainable biomass export to EU)

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Thank you for your attention!

More information?

Dr. Martin Junginger, h.m.junginger@uu.nl Thuy Mai-Moulin, t.p.t.mai-moulin@uu.nl

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