http://www.nature.com/news/policy-define-biomass-sustainability-1.18058?WT.ec_id=NATURE-20150730&spMailingID=49207299&spUserID=NzUwNTA3NjQzNAS2&spJobID=723870937&spReportId=NzIzODcwOTM3S0

Policy: Define biomass sustainability
Roeland Bosch, Mattheüs van de Pol& Jim Philp
29 July 2015
The future of the bioeconomy requires global agreement on metrics and the
creation of a dispute resolution centre, say Roeland Bosch, Mattheüs van de
Pol and Jim Philp.

The bioeconomy is rising up the political agenda. More than 30 countries
have announced that they will boost production of renewable resources from
biological materials and convert them into products such as food, animal
feed and bioenergy. Non-food crops, such as switchgrass (Panicum virgatum),
are the main focus, as well as agricultural and forestry residues and waste
materials and gases.

It is one thing to write a report; it is another to put a plan into action
sustainably. The biggest conundrum is reconciling the conflicting needs of
agriculture and industry. In a post-fossil-fuel world, an increasing
proportion of chemicals, plastics, textiles, fuels and electricity will
have to come from biomass, which takes up land. By 2050, the world will
also need to produce 50–70% more food1, increasingly under drought
conditions and on poor soils.

There is no consensus on what 'sustainable' means. Biomass assessment is a
patchwork of voluntary standards and regulations. With many schemes comes a
lack of comparability. Confusion leads to mistrust and protectionism,
international disputes and barriers, slow investment and slower growth.

For example, greater use of wood for electricity generation or heating may
decrease greenhouse-gas emissions if it displaces coal. But retaining
forests also sequesters carbon and protects biodiversity. Increased demand
boosts wood-pellet prices, and puts pressure on businesses, such as saw
mills, that use wood. The balance of who saves or creates emissions shifts
when biomass is exported.

The geopolitical implications mirror those of crude oil. Developed
countries that lack fossil fuels are thirsty for renewable energies. Some
developing countries may be tempted to meet that demand without accounting
for the environmental or social cost. It is in everyone's interests to
harmonize sustainability standards and head off disputes before they arise.
Governments should agree on criteria and define metrics for assessing
biomass sustainability. And they should consider creating a centre for
resolving disputes that arise over competition for land and biomass.

No consensus
In 2012, the United States and the European Union laid down their
intentions to grow their bioeconomies2, 3. Now, the G7 industrialized
countries4 and at least 20 others either have a dedicated bioeconomy
strategy in place (including Finland, Malaysia and South Africa) or have
policies consistent with growing a bioeconomy (including Australia, Brazil,
China, India and Russia).

The bioeconomy of Malaysia, for example, is expected to grow 15% per year
to 2030. The palm-oil industry is central to that plan, as it is elsewhere
in southeast Asia.

Making up 45% of the world's edible oil, palm oil can also be processed
into biodiesel. The oil-palm crop is also more effective at sequestering
carbon than other major crops. Using genomics in selective breeding offers
great potential for improvements to the economics of palm-oil production5.

Land disputes between palm-oil companies and local communities have already
begun. Between 2006 and 2010, Indonesia's palm-oil plantation area
increased dramatically, from 4.1 million to 7.2 million hectares. The
increase has been accompanied by a rise in deforestation, water pollution,
soil erosion and air pollution, as well as restrictions on traditional
land-use rights and land losses, increasing land scarcity and land prices6.

A situation that arose between Canada and the EU in 2012 illustrates how
rational decision-making in different countries can lead to disputes. The
EU's Renewable Energy Directive sustainability criteria for biofuels and
bioliquids are non-binding for solid biomass. EU biomass sustainability
standards also prohibit the use of 'primary forest' materials for bioenergy.

In Canada, forests are deemed sustainable by measures of woodland
structure, composition and degree of 'naturalness'. Overall, the area
affected by natural disturbances such as insect infestations and wildfire
is larger than the total area of logging — and the use of such damaged
trees for bioenergy holds potential. But because it stems from primary
forest that has not been harvested or regrown, such wood would be excluded
from importation into the EU.

A dispute arose in 2012 between an environmental organization and an energy
company wishing to ship wood pellets to Europe that had originated from
Canadian primary forest infested with the mountain pine beetle
(Dendroctonus ponderosae). The Dutch government used the case to see
whether mediation might work in such circumstances — and it did. The
dispute was settled.

Increasing demand for biomass makes it likely that such disputes will
recur. Limited land mean that Europe cannot grow enough biomass to meet its
own future demand. Depending on bioenergy policies, biomass use is expected
to continue to rise to 2030 and imports to Europe are estimated to triple
by 2020. Wood-pellet use for large-scale power generation is increasing
dramatically in Europe. Some countries including Germany and Denmark have
become net importers. Europe may import7 80 million tonnes of solid biomass
per year by 2020.

Today's biomass situation bears similarities to that in the 1980s, when a
system of national agricultural subsidies in Europe threatened to start
trade wars. Policies directed at producing more food combined with rapid
technical progress and structural changes led to agricultural trade
barriers. Domestic surpluses of farm goods were stocked or exported with
subsidies — giving rise to the European 'butter mountains' and 'wine lakes'
— by protecting farm producers at the cost of domestic consumers and
producers abroad. The costs weighed heavily on government budgets.
Consumers in countries with protected markets faced higher food bills, and
producers in other countries were penalized by restrictions on access to
those markets8.

The Organisation for Economic Co-operation and Development (OECD) helped to
resolve that situation by developing standards for agricultural subsidies,
which are accepted globally. An analogous, internationally agreed biomass
sustainability governance framework is now needed.

Sustainability metric
A metric for evaluating biomass sustainability needs to be designed. Social
as well as environmental and economic factors must be included. As yet
there is no consensus on what criteria should be used. For example,
international stakeholders (non-governmental organizations, policy-makers,
research and development, bioenergy producers, end-users and traders) from
25 European and 9 non-European countries surveyed in 2011 agreed9
unanimously on only one criterion — minimization of greenhouse-gas
emissions.

Aggregation of sustainability issues into a single measure requires
complicated trade-offs between, say, kilograms of carbon dioxide emissions
and labour conditions. Practitioners' own weightings are subjective.
Life-cycle analysis — a technique to assess environmental impacts of all
the stages of the manufacture, use and disposal of a product — does not
look at social impacts. To define an index, multiple variables must be
expressed using a common denominator.

Using price information is understood by policy-makers and the market. But
placing monetary values on social and ethical costs and benefits is
contentious. Differences between developed and developing countries require
careful handling — for example, the different reactions to placing a cost
on child labour.

“Differences between developed and developing countries require careful
handling.”
A starting point could be the total factor productivity (TFP) metric used
to measure agricultural sustainability. The TFP reflects the rate of
transformation of inputs (capital, labour, materials, energy and services)
into outputs (biomass stock). A cost is attributed to each and to the
negative social and economic impacts.

To develop the TFP approach into an integrated methodology for assessing
biomass sustainability, it should take account of changing conditions and
local situations in biomass importing and exporting countries. For example,
just like oil, the price of biomass will fluctuate. Expensive producers
would be hurt. Sustainability assessment will need to take account of such
fluctuations. A tenet of a bioeconomy is decentralized feedstock access —
biomass-sustainability assessment needs the flexibility to take such
matters into account.

Biomass metrics could be aligned with the United Nations' Sustainable
Development Goals, the indicators10 of which are similar. A step towards
this alignment may be achieved in November at the Global Bioeconomy Summit
in Berlin. This meeting of more than 500 leaders from policy, research,
industry and civil society organized by the German Bioeconomy Council (an
independent advisory body to the German government) could result in
recommendations around global governance and international cooperation.

Beyond that, international agreement is needed on the key biomass
sustainability criteria. The OECD could host initial discussions including
exploring the setting up of an international biomass dispute settlement
facility. Developing countries and biomass producers outside the OECD
should also be represented at such talks. These possibilities will be
discussed at the OECD Committee for Scientific and Technological Policy
ministerial-level meeting in October hosted by the South Korean government
in Daejeon.

Nature 523, 526–527 (30 July 2015) doi:10.1038/523526a

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