An introduction to the Sustainable Biomass Partnership

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1 An introduction to the Sustainable Biomass Partnership March 2015

2 Outline 1. The sustainability challenge 2. A sector solution 3. Progress to date 4. What next?

3 The challenge To tackle global warming, EU generators are encouraged by the EU and national governments to switch from fossil fuels to renewable feedstock. Financial incentives are provided so that generators can compete with conventional fuels such as coal and gas but this support is contingent on generators demonstrating that feedstock is legally and sustainably sourced The definition of sustainability varies between EU Member States. SBP recognises the credibility of existing forest certification schemes (FSC/PEFC) and does not wish to compete with or replicate them. If FSC or PEFC could meet sector needs we would not need SBP standards. However, these forest level schemes have insufficient take up in key forest source areas and lack some of the key elements needed for biomass so a bridging solution is required.

4 SBP is a European industry initiative Seven critical market players using woody biomass for large scale heat and power generation in the European Union (BE, DK, NL, UK)

5 SBP structure Governance: European partnership incorporated as notfor profit UK company. Board is key decisionmaking body. Standards Development Group Advisory Board Advisory role Advisory role Communications Working Group

6 SBP vision and objectives SBP has set out its vision and objectives that set the direction for its work in Vision: To enable an economically, environmentally and socially sustainable solid biomass supply chain that contributes to a low carbon economy. Objectives: To provide an effective mechanism that enables producers and users of solid biomass for energy production to demonstrate compliance with end user (European/national) regulatory requirements and alignment with existing widely accepted sustainability standards To promote enhanced sustainable forest management and greater uptake of existing efficient and internationally recognised, third party verified forest certification schemes in key wood baskets To contribute to a strengthened scientific evidence base and a greater understanding of issues associated with the use of solid biomass for energy production To deliver increased transparency of supply chain performance and data.

7 SBP strategy (1) SBP s first objective has been to develop a SBP Framework comprising a set of standards and processes for voluntary certification enabling any biomass producers and European generators to demonstrate compliance with regulatory, including sustainability, requirements relating to woody biomass The standards and associated tools are all publicly available on SBP s website. SBP will not develop its own forest level certification scheme but is committed to a core strategy that identifies and uses, wherever possible, existing forest certification schemes (the FSC and PEFC) as the principal building blocks for its approach. Whilst these schemes are highly credible with regulators and stakeholders, neither currently meets members full regulatory, including sustainability, requirements.

8 SBP strategy (2) To address these gaps, the SBP will: Align its standards as closely as possible with FSC and PEFC standards and processes, while seeking to work with these schemes and key stakeholders. Establish an ongoing dialogue and collaboration with FSC and PEFC to enable both schemes to provide alternative solutions that allow biomass producers and users fully to meet their regulatory, including, sustainability, requirements. Support stakeholder initiatives both to improve sustainable forest management practices and to increase uptake of FSC and PEFC certification in key forest source areas or wood baskets.

9 Building the SBP Framework Standards Aim and scope Standards are applicable to source areas globally and are open access Ensure alignment with national regulatory requirements to cover all those countries in which SBP member companies operate generating plants using woody biomass (BE, DK, NL, UK) Provide effective and verifiable assurance Facilitate trading Certification of production unit e.g. pellet mill rather than forest level Alignment where possible with globally recognized forest certifications schemes (FSC/PEFC) many of the SBP processes are derived from FSC and PEFC SBP Approved Certification Bodies will be FSC or PEFC accredited FSC/PEFC certified material accepted Risk based approach for non certified material

10 Building the SBP Framework Standards Aim and scope Informing the debate Providing a solution for regulators e.g. Danish industry agreement based on SBP approach Hitting a moving target Lack of confirmed EU or national standards, so need to work with what is available Therefore, regulatory compliance demonstrated using the most comprehensive and stringent national requirements: Legality from EU Timber Regulation Sustainable Forest Management criteria based on UK Government s Timber Procurement Policy (CPET Category B) requirements plus NL criteria Chain of custody based on existing CoC concepts GHG data to be carried along supply chain meeting Belgian requirements.

11 The certification concept feedstock, pellet mill and biomass Primary Feedstock Secondary Feedstock Tertiary Feedstock

12 The certification framework structure, process and procedures SBP Framework: Scheme Architecture, Structure, Process and Procedures Feedstock Compliance Standard and Verification of SBP compliant Feedstock Standard Primary Feedstock Collection and Communication of Data Standard Secondary Feedstock Energy and Carbon Balance Standard Tertiary Feedstock Certification Systems, Requirements for Certification Bodies Standard

13 The certification concept a risk-based approach Supply Base Evaluation Principles derived from UK TPP, including other relevant criteria Legality Ecosystems Environment Productivity Social Biodiversity Other Relevant Criteria Regional Risk Assessment Desk based assessment against SBP criteria results in a risk rating for each indicator + Supplier Verification Program Field based assessment for those indicators for which no clear risk can be determined in RRA PEFC/FSC certified feedstock Low Risk Criteria No further action needed Compliance Specified Risk Criteria Implement mitigation measures

14 Collection and Communication of Data Standard 1. Data to be collected: Carbon and energy values to be collected are defined. Haulage distance Energy in processing Shipping distance 2. Definitions of the data: Variable definitions across EU Member States and regulators Feedstock type (UK, NL/BE) Fertiliser use in forestry (UK Ofgem) 3. Method for carriage of data: Different data is transmitted and made available in different ways Public summary reports Annual Basis (only for end customer) Batch specific data, e.g. feedstock content (only for end customer)

15 The Standards The six Standards available on 1. Feedstock Compliance Standard: The Principles, Criteria and Indicators defining the management system needed to verify that feedstock is legal and sustainable 2. Verification of SBP compliant Feedstock: The method for the evaluation of the risk associated with feedstock 3. Certification Systems. Requirements for Certification Bodies: The requirements on certification bodies in verifying compliance by SBP certificate holders 4. Chain of Custody 5. Collection and Communication of Data: Methodology for collection of data along the supply chain. 6. Energy and Carbon Balance Calculation: Requirements for generators in calculating GHG values. (In development).

16 Key concepts in summary The SBP Framework comprises standards, structures, systems and processes Makes maximum use of FSC and PEFC and complements where necessary Addresses specific biomass issues Can be used in areas with limited uptake of FSC/PEFC certification Independent third party certification SBP certifies four components: sustainable feedstock, chain of custody, energy and carbon data collection, GHG calculation Risk based approach for non certified feedstock Central role for pellet mill, FSC Controlled Wood PLUS approach Stakeholder input in Supply Base Evaluation and certification processes

17 Review Progress Draft standards published for stakeholder consultation and engagement (March 2014) SBP response to key issues identified (September 2014) (see website) Version 0.0 Beta standards published (September 2014) Sector road testing certification CBs and BPs (October December 2014) Further refinement took place to: take account of learnings from test certification align with emerging regulatory requirements (especially NL) address stakeholder issues Version 1.0 standards published (March 2015) Piloting SBP Regional Risk Assessment concept in Lithuania now extended to other Baltic states Work ongoing with PEFC to develop Greenhouse Gas (GHG) data module for use in PEFC chain of custody

18 Going forward Indicative timetable for development of Version 2.0: : Further refinement and strengthening Key aim is to more effectively embrace a wider group of stakeholders e.g. resource owners and NGOs in development of Version 2.0 End 2016: Version 2.0 available

19 Further information Contact: Peter Wilson Executive Director

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