Transcript Background Paper on Biofuels Industry Development in Africa

PRESENTE PAR PHILIPPE NIYONGABO,
CHEF DE DIVISION ENERGIE
COMMISSION DE L’UNION AFRICAINE
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Petroleum fuel faces acute peaking problems due to :
1.ever
increasing demand in the face of dwindling production rate
2.instabilities in the centres of petroleum production,
Results = Huge swings in crude oil price affecting national and
global economies.
Renewed interest in biofuel as an alternate sustainable fuel to
augment energy-security and avert the associated environmental
issues.
Biofuels are used for lighting and powering engines.
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Production and consumption of liquid biofuels for
transport accounts for <4% of road transport fuels
worldwide but growth rates and future potentials are
significant.
Biofuels promotion in developing countries can assist achieve
the Millennium Development Goals (MDGs) through poverty
reduction, health impact and climate change.
Africa, having vast land, varieties of biofuels feedstocks,
favourable climate for growing many of the energy crops and
low labour cost ought to take advantage of this emerging
industry and market.
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Enhancing rural economy through integrated bioenergy and agroindustrial development
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decrease energy-security risks associated with crude oil importation by
local production and consumption of biofuels;
Creation of numerous jobs from the farming to the
marketing/exportation of products;
Sustainable and environmentally friendly pack of biofuels production
methods;
improvement on the existing agricultural and forestry policies and
practices;
Large scale mechanised farming through cooperatives;
Well-directed R&D and other support systems with a focus on
developing new and good farming methods;
see biofuels development as an agricultural promotion with an energybenefit;
avoid becoming raw material producer for the biofuels industry;
Successful pathways chartered by nations such as Brazil, USA, India, 4
1.
Environmental Sustanability
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2.
Social Sustainability
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3.
Forest Depletion & Biodiversity Theat
Pollution
Land Utilisation
Job Creation
Rural Development
Food Security
Labour Issues
Land and Water Acces
Health
Fuel Burden
Economic Sustainability
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Objectives of Proposed Biofuels Development Programme in
Africa
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To brief policy makers, the private sector and regional
institutions on the development of bio-fuels and their
importance to Africa
To explore the possibilities of Biofuels in Africa while
ensuring a balance between the potentials, risks and
trade-offs of Biofuels
To bring together stakeholders in the Biofuel sector to
develop a common strategic plan for the development
of this new source of energy in Africa; and
To facilitate the development of viable policies and
strategies on the Biofuels Industry in Africa
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Broad areas for assessment and development include
the following:
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Current Status and Plans in Africa for each of the sector subgroups (e.g. biogas, biodiesel, bioethanol, gel fuels and
gasification)
Trade and consumption issues, sustainability, potential risks
and trade-offs
Costs and benefits of biofuels development
Policy frameworks (Regulation, Investment and Financing,
Technology Transfer, Environment, etc)
Roles of national governments, regional economic
communities, development partners and local as well as foreign
private sector
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Deliberations are to aid in formulating sets strategic guidelines and
policies in developing biofuels in Africa. Discussion of the
challenges & benefits covers:
Trade and Consumption Benefits
Biofuels
trade is deemed modest currently but is growing rapidly
with the increasing mandate usage in USA and the EU.
Increasing Chinese demand for energy.
Exportation of finished products considered cheaper than bulky
biomass.
Win-win opportunity to exporting & importing countries/regions.
Tariffs and non-tariff measures – Distortion of international
biofuels markets.
Total biofuels use in Africa - Expected to remain small
Policies targets - Domestic and the growing international biofuels
market.
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2.
Poverty Reduction
Biofuels industry has a huge employment potential & can
increase the incomes of Africans thereby lifting them from
the poverty trap.
Resources available for these are:
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the vast land resources and
varied nature of the feedstocks
favourable climate
human resources
Biofuels market can aid farmers to earn better incomes for
their produce due to the expanded market.
However, tendency to start a vicious cycle of soaring prices
of food and food products must be carefully analysed and
avoided.
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3.
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Environmental Benefits
It is accepted that at least 13% per kilometre savings can be
obtained using biofuels against fossil fuel (IEA, 2006).
Certificates and eco-labelling of biofuels and products based on
robust internationally acceptable sustainable criteria could be
good instruments.
The potential of reducing climate change via decrease in
greenhouse gases (GHG) has to be assessed on the full life-cycle
of the biofuel feedstocks.
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Common Policy for Africa coordinated by the AU, should be
implemented and use RECs as mediums.
Initiatives that could boost development of the sector and
advocated for establishment are:
African Biofuel Board,
Centres of Excellence and
Biofuel Fund for Africa.
Encourage African oil producing countries to invest in biofuels
in non-oil producing countries for mutual benefit.
Investigate & implement policies on Stabilization Fund to
relieve the pressure of high oil prices on ongoing development
projects.
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Comprehensive policy integrating R&D, investment, production,
land use, land ownership, loss of biodiversity, use of GMOs,
GHG, soil erosion and other soil degradation, water use and
water contamination, human health impacts and labour
conditions has to be implemented at continental level.
Translation of formulated policies into long-term development
space available for the production of a large variety of feedstock
species.
Policies to settle land acquisition issues in order to facilitate
private investment to be formulated.
Mechanised farming appears to be a key component in the
development of this industry. But large-scale models run the risk
of squeezing out small-scale producers and the associated
sustainable development benefits.
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Objectives to be targeted include:
Food and energy security - diversification and progressive
substitution of oil;
Reduction of oil import bill;
Wealth creation and poverty reduction;
Employment creation;
Foreign exchange generation;
Significant climate change mitigation impacts;
Uptake of clean cooking technologies using ethanol gel fuels and
vegetable oil.
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Policy guidelines to be listed as short term, medium term and long term and
recommended to member states for adoption.
List below could be incorporated in the discussions:
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B.
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F.
G.
H.
I.
J.
K.
L.
M.
N.
Harmonization of National Policies at Continent level
National Policies Development and Implementation
Environment, Social, Health and Safety Certification Systems
Statistics and Information
Research and Development Programmes
African Biofuel and International Trade
Capacity Building, Education and Public Awareness
Land Tenure and Ownership
Creation of a Common Fund for Biofuels
Rural Labour
Innovative Financing Mechanisms
Rural Labour
Ownership Structure
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Mandatory Blending Percentage Accompanied by Sustainability Measures
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b)
The impact of integrated biofuels system on rural/industrial
development is envisaged to be enormous in increasing access to
power and improving her economy.
Following the success stories of biofuels implementation and
concerns for global demand and possible problems, the
following recommendations have been made:
Policy Support: Biofuels strategy devised would have to have a
strong government policy framework to ensure availability of
market through :
increased awareness creation via workshops/seminars on the
advantages of using biofuels over petroleum fuels.
provision of incentives. Fiscal incentives are necessary to create
a viable and successful industry for manufacturing biofuels and
such incentives could be linked to carbon savings.
The public acceptance of biofuels as a visible and important
industry will be based on manifestation of continental, REC and
national governments’ commitment.
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2.
Poverty Reduction: This industry can generate enormous
number of jobs and can also raise the local economy. The
sustainability to the rural areas could be ensured if the farmer is
cited as the pinnacle of the crop production and oil processing
systems, in the short to medium terms.
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Standing on the shoulders of giants: Lessons learnt from other
nations and regional blocks could be used to carve Africa out to
become a successful biofuel centre.
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Great potential exist for developing innovative small companies
and clusters innovation through well-directed R&D and other
support systems. Many other benefits and added-value can arise
from enhanced biodiversity to new products and crops.
Not withstanding the above, Africa should avoid becoming raw
material producers for the biofuels industry.
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THANK YOU !
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