Today, the Bioenergy Technical Working Group released their proposed eligibility criteria for bioenergy projects that qualify under the Climate Bonds Standard. The criteria are now subject to a 60 day period of public consultation. You can submit your comments on this page or via email.
The committee of international experts includes members from Food & Agriculture Organisation, National Wildlife Federation, International Institute for Sustainability Analysis and Strategy (IINAS), University of British Columbia, University Wisconsin-Madison. It’s overseen by the Industry Working Group comprised of representatives from Rabobank, Boeing UK and VITO that provides guidance on market practicability of the science committee proposals.
Bioenergy – renewable energy made available from materials derived from biological sources such as wood, manure or any other agricultural byproducts – has the potential to significantly contribute to reduction of greenhouse gas emissions globally. The International Energy Agency (IEA) tells us that biofuels could provide 27% of total transport fuel and in particular contribute to the replacement of diesel, kerosene and jet fuel.
WWF estimates even higher dependency on bioenergy; its 2011 WWF Energy Report examining world’s technical, environmental and financial feasibility to run on 100% renewable electricity concluded that by nearly 50% of the energy consumption could be bioenergy based.
Sean Kidney, CEO of the Climate Bonds Initiative said:
“The potential climate mitigation role of bioenergy is critical. If we are to decarbonise certain sectors that currently depend on liquid fuels such as aviation, switching to bioenergy is the only renewable alternative.”
At the same time, concerns have been raised around the negative impacts that bioenergy might have on forests, food availability and competition for biomass resources. Its contribution to real reduction in greenhouse gas emissions has also been questioned.
The working group was tasked with coming up with criteria that will provide a straightforward guidance for investors who consider putting money into a bioenergy project.
László Mathe, Lead Specialist on the Expert Committee said:
“Robust environmental and social sustainability criteria, paired with ambitious GHG reduction targets are the key ingredients of successful bioenergy projects. Sustainability, independently certified by third parties, is important not only for the environment and local communities but also for the long term financial success of the project.”
The Expert Committee concluded that bioenergy investments certified under the Standard must deliver on: GHG mitigation potential, environmental and social sustainability. They also decided to leverage existing, credible market standards as proxies.
The proposed criteria states that bioenergy projects applying for certification need to be certified under one of the following standards: Roundtable for Sustainable Biomaterial (RSB), Round Table Responsible Soy (RTRS), Roundtable for Sustainable Palm Oil (RSPO), Bonsucro and FSC (Forest Stewardship Council). Additionally, at least 60% reduction in emissions comparing with local baselines must be demonstrated for biofuel projects and at least 70% for solid biomass projects. See full criteria here.
After 60 days the criteria will be submitted to the Climate Bond Standards Board for confirmation. Board members are CalSTRS , the (US) Investor Network on Climate Risk, the (EU) Institutional Investor Group on Climate Change, the (Australian) Investor Group on Climate Change, NRDC, CDP (formerly known as the Carbon Disclosure Project), The International Cooperative and Mutual Insurance Federation (ICMIF) and the State Treasurer of California, John Chiang.
Members of the Bioenergy Technical Working Group:
- Dr. Ausilio Bauen, Director, E4 Tech consultancy
- Dr. Aziz Elbehri, Senior Economist, Food & Agriculture Organisation (FAO)
- Barbara Bramble, Senior Director for International Wildlife Conservation, National Wildlife Federation
- Dr. Birka Wicke, Copernicus Institute of Sustainable Development (Faculty of Geosciences) , Utrecht University
- Jack (John) N. Saddler, Department of Wood Science, University of British Columbia
- László Máthé, Independent consultant
- Dr. Molly Jahn, University of Wisconsin-Madison
- Uwe R. Fritsche, International Institute for Sustainability Analysis and Strategy (IINAS)
- Shay Reza, Co-Founder, Arise International
Industry working group:
- Luc Pelkmans, VITO
- Richard Mills, Strategy Director for the UK and Ireland, Boeing UK
- Hans Biemans, Rabobank
