Biofuels in Sweden: national verification system for sustainability

Transcription

1 Biofuels in Sweden: national verification system for sustainability Swedish Energy Agency Alesia Israilava Programme manager 24 April 2013

2 Contents Energy and transport: the picture EU and Swedish policy Summary of the legal framework for verification of sustainability criteria in Sweden Biofuels in transport (report 2011)

3 Domestic energy use 2010 Bioenergy is the champion

4 Share of different bioenergy in Sweden, 2010 Such as: - Forest and logging residues - Low quality round wood - Used wood - By-products (e.g. bark and saw dust) - Wood pellets / briquettes / powder Totally 141 TWh ~ 38% of the total quantity of fuels (372 TWh)

5 Biofuels for transport

6 Transport target 10 %

7 Objectives: EU and Swedish policy RED: 20% renewable energy, 20% emissions reduction,10% renewables in transport FQD: transport fuel distributors shall reduce the emission by 6% Sweden: 50% renewable energy, 10% renewables in transport Fossil independent transport fleet 2030 Zero emissions 2050

8 Energy policy instruments promoting bioenergy Carbon and energy tax (exemption) Electricity certificate system EU-ETS Others include Pump law Car taxation Rural development programme

9 Only SUSTAINABLE biofuels and bioliquids: To be accounted for against the national RED objectives (10% transport) To get tax exemption or reduction (state aid) To be used for electricity certificate (bioliquids) To be accounted for biofuel quota (future act on quota system for biofuels

10 Sustainability criteria: Implementation in Sweden Renewable Energy Directive (2009) Act (2010:598) concerning sustainability criteria for biofuels and bioliquids (spring 2010 ) In force as of 1 Jan 2011 Ordinance (Dec 2010) Regulations (Feb 2011) Detailed provisions in place in February 2011 Amendments (1 Nov 2012) Sustainability Decision Reporting obligation = taxable Agreements within the production chain, samples etc Updated Ordinance and Regulations

11 The legal framework - Sweden HBL = Act (2010:598) concerning sustainability criteria for biofuels and bioliquids, and Act (2011:1065) concerning amendments in Act (2010:598) concerning sustainability criteria for biofuels and bioliquids HBF = Ordinance (2011:1088) concerning sustainability criteria for biofuels and bioliquids HBFS = Regulations (2011:2) concerning sustainability criteria for biofuels and bioliquids Guidance 3.0

12 Summary (1) Sustainable = fulfills the requirements in Act (2010:598) concerning sustainability criteria for biofuels and bioliquids: Greenhouse gas emission saving Land criteria Traceability through the production chain (the mass balance principle) Requirements on verification systems (sampling procedures, deviation management, etc.)

13 Summary (2) From 1 November 2011, the Swedish Energy Agency can issue a Sustainability Decision for biofuels and bioliquids In order to receive a Sustainability Decision, the economic operator with a reporting obligation shall: Have a verification system in place that ensures sustainability in the entire production chain which is audited by an independent auditor. Apply for a Sustainability Decision at the Swedish Energy Agency Sustainable quantities (and sustainability characteristics for each consignment) shall be reported annually to the Swedish Energy Agency

14 Reporting The economic operator with a reporting obligation shall report the quantity of sustainable fuel that is, or forms part of fuel for which the economic operator s tax obligations have entered into force in accordance with Act (1994:1776) concerning Energy Tax sustainable bioliquids used Annual reporting, done at the latest 1 April for the previous year (starts 1 April 2012) Electronically on the Swedish Energy Agency s website

15 Sustainability Decision (1) Verification systems approved beforehand The decision means that the reported quantities are to be considered sustainable Is valid until further notice, but shall be reviewed Application for a Sustainability Decision Description of the verification system Statement from the independent auditor Description of the independent auditor s competence and assurance of independence Electronically through a tool at the Swedish Energy Agency s webpage

16 Sustainability Decision (2) Sustainability Decision for specific quantities issued if the quantity is proved sustainable after it has been put on the market List of approved Sustainability Decisions (EN and SE) nability/sustainable-fuels/sustainabilitycriteria-for-biofuels-and-bioliquids/

17 Who is affected? A reporting obligation according to HBL is designated to those who are taxable for fuel that is partly or completely comprised of biofuel or bioliquid according to Chapter 4. Energy Tax Act 1994:1776; or are economic operators that in their business activity use biofuel or bioliquid that is neither partly nor completely taxable according to the Energy Tax Act All economic actors in the production chain are indirectly affected Must have procedures in place and deliver information regarding sustainability to their clients (through agreements)

18 Which biofuels and bioliquids are covered by HBL? Biofuels (for transport) Ethanol, FAME biodiesel, HVO, biogas Bioliquids (for energy purposes other than transport) Bio-oils, tall oil, tall oil pitch, (RME) Only liquid fuels (not gaseous) NOT biogas for electricity and heating Not solid biofuels

19 The Swedish system 1. Application for Sustainability Decision 2. Sustainability Decision emitted by SEA 3. Reporting of sustainable volumes 1 April

20 Verification system with a valid Sustainability Decision Verification system in operation Review Annual reporting of quantities Follow up independent audit Significant deviations Essential changes

21 Implementation of reporting according to the Fuel Quality Directive (FQD) Fuel suppliers: 6 % greenhouse gas emission savings 2020 Reporting in 2012 in accordance with Act (2011:319) on fuels The Swedish Energy Agency is the supervisory authority in Sweden according to Ordinance (2011:346) on fuels. The Swedish Agency s time schedule for regulations: autumn 2013 depending on commission draft Reporting obligation for amounts of fuels used in Nov 2012, for April 2013 (together with RED reports) Proposal for a commission directive concerning reporting is still being negotiated

22 Energy/transport policy instruments on the way EU: ILUC proposal Sweden Qouta system

23 Summary: Biofuels in Sweden 2011 Total emission reduction during 2011 was ton carbondioxide ekvivalents Total of 5,5 TWh biofuels has been reported Average reduction of emissions: Ethanol 62%, FAME 38%, HVO 88%, Biogas 71%, DME 78% Countries of origin is mainly in Europe, no feedstock from Africa or the Pasific region

24 Biofuels 2011

25 Sustainable biofuels 2011 (2) Fuel category Energimängd [GWh] Sustainable volume [m 3 ] Ethanol FAME Biogas HVO ETBE DME* >0 >0 Verified Unverified 540 Total 6 061

26 Sustainable biofuels 2011 (3): appr. 1 Mt emission reductions

27 Sustainable biofuels 2011 (5): ethanol, feedstock Feedstock Sustainable amount (m3) Sustainable amount (%) Wheat ,1% Corn ,6% Sugar cane ,1% Grain ,1% Triticale ,3% Wine residues ,9% Sugar beet ,7% Rye ,6% Molasses from sugar cane ,2% Lye ,1% Total %

28 Sustainable biofuels 2011 (6): ethanol, origin Share [%] Feedstock origin Volume [m 3 ] Sweden ,4 % France ,0 % Brasil ,9 % Spain ,3 % UK ,7 % Other ,8 % Total % [1] Belgium, Costa Rica, Denmark, Estonia, Guatemala, Latvia, Lithuania, Romania, Russia, Serbia, Germany, Hungary, Ukraine and USA

29 Sustainable biofuels 2011 (7): FAME, origin Share [%] Feedstock origin Volume [m 3 ] Denmark ,4% Lithuania ,6% Ukraine ,4% Germany ,3% France ,6% Other ,7% Total ,0% [1] Afghanistan, Bulgaria, Kazakstan, Latvia, Russia, and Sweden.

30 Sustainable biofuels 2011 (8): FAME, average emission reduction Almost all sustainable FAME that has been used in Sweden has been produced from rape Most of the reporting companies has been using the default value 38%, when reporting emission reduction for FAME

31 Sustainable biofuels 2011 (9): HVO, average emission reduction HVO was produced mainly from tall oil, which is a residue from the forest industry Other feedstock is used in small amounts The average emission reduction as reported for HVO was 88 %

32 Gas for transport (Natural gas + Biogas) Mm 3

33 Sustainable biofuels 2011: biogas Feedstock Sludge from municipal waste water plants & household sewage Sustainable amount (m3) Sustainable amount (%) ,7% Slughterhouse waste ,5% Sorted food waste (solid) ,1% Glycerol, unrefined ,5% Sorted food waste (liquid) ,2% Corn ,9% Liquid waste from food industry ,7% Sludge from grease traps in restaurants and caterers (canteens) ,1% Cereal residues ,8% Manure (liquid) ,3% Other ,2% Total %

34 Sustainable biofuels 2011: biogas, origin Share of feedstock Sweden 89% Norway 6% Germany 5% Denmark 0,02% Almost 90 % of feedstock has domestic origin.

35 Feedstock for production of biogas: Emission reduction Sludge from waste water plants Slughter house waste Food waste (solid) Glycerol Food waste (liq) Corn Waste from food industry (liq) Sludge from grease traps Manure (liq) Cereal residues 0% 20% 40% 60% 80% 100%

36 Summary: Bioliquids in Sweden 2011 Total emission reduction during 2011 was ton carbondioxideekvivalents Total of 3,6 TWh biofuels was reported, (tall oil pitch was nearly half amount) Approx 70 % of the reported bioliquids has an emmission reduction that is higher than 50 %

37 Sustainable bioliquids in Sweden 2011 Feedstocks (residues and wastes mostly) Energy [GWh] Share [%] Biooils Tall oil pitch ,7% MFA (Mixed Fatty Acid) ,4% Tall oil ,7% Vegetable residue oils 55 1,7% Residues from animal feed production 54 1,6% Residue oils from pulp mills 24 0,7% FFA (Free Fatty Acid) 12 0,3% Liquid waste oils from food industries etc 11 0,3% Vegetable oils 8 0,2% Terpentine 6 0,2% Etanol Brown liquor 8 0,3% FAME Rape seed 5 0,1% Animal waste 3 0,1% Metanol Raw methanol 287 8,6% Totalsumma ,0%

38 More information about Sustainability Criteria in Sweden Website: bara_branslen/ Legal information, guidance, FAQ, information concerning the application procedure, e-portal for application and reporting, calculation tools, news Newsletter Questions: or tel. +46 (0)

39 Verification system HBL Chapter 3, section 1a HBF sections HBFS Chapter 3, section 1

40 Verification system The economic operator with a reporting obligation shall, through a verification system, ensure that the biofuels and bioliquids it is to report are to be considered sustainable Direct and indirect agreements through the entire production chain Samples Audited by an independent auditor Accurate, reliable, and protected against fraud

41 Verification system shall: Cover production chains handled within the system Be based on a risk assessment of the operation Take into account how the greenhouse gas emission saving is calculated Include written guidelines and procedures, particularly for sampling and mass balance Be auditable regarding the basic data pertaining to the assurance sustainability that is saved for at least 10 years Be managed with a clear distribution of responsibility and functions within the organization Include a specific deviation management system with a designated responsible person.

42 Agreements Direct agreements in the production chain Between an economic operator with a reporting obligation and supplier Indirect agreements Between supplier and subcontractor Samples to ensure that biofuels and bioliquids are to be considered sustainable

43 Agreements The economic operator with a reporting obligation makes direct agreements with its supplier concerning requirements on sustainability and sampling, and that the supplier and its subcontractors make agreements concerning requirements on sustainability and sampling further down the production chain. Direct agreement Indirect agreement In the indirect agreement, the supplier makes agreements with its subcontractors that they make agreements with their subcontractors concerning requirements on sustainability and sampling further down the production chain. The subcontractor makes the same indirect agreements further down the production chain Indirect agreements further down the production chain

44 Sampling Sampling can be performed by The economic operator with a reporting obligation The independent auditor Other competent and independent third party Samples shall cover a selection of sustainable quantities Sampling procedures and methods shall be part of the audit when applying for a Sustainability Decision The sample size shall be part of the audit when reviewing the Sustainability Decision

45 Deviation management system and significant deviations The verification system shall include a specific system for managing deviations The deviation management system shall have a designated responsible person Significant deviations identified shall be reported to the Swedish Energy Agency electronically The deviation report shall include a description of the deviation as well as an action plan for rectifying the deviation

46 If the supplier earlier in the production chain has a Sustainable decision or is certified by a voluntary scheme: The verification system of an economic operator with a reporting obligation only need to include the parts of the production chain that is not covered by the certificate or the Sustainability Decision

47 Independent auditing HBL Chapter 3, section 1 a HBF sections 15, 19 HBFS Chapter 4, sections 1-10

48 Independent auditing The verification system shall be audited by an independent auditor The audit shall verify that the verification system is accurate, reliable, and protected against fraud The audit shall include an evaluation of the frequency of samples The audit shall include an evaluation of the information submitted by the economic operator concerning its verification system

49 Independent auditing The auditor shall be independent relative to the audited economic operator/persons The auditor shall have the necessary technical and economic competence when taking into account the nature and extent of the operation Basic data corroborating the auditor s competence and independence shall be included in the statement that is sent to the Swedish Energy Agency

50 Audit before application of a Sustainability Decision Risk analysis of the verification system Audit plan for the verification system Assessment of procedures and methods, particularly concerning samples and mass balance Assessment of the requirements set on basic data that ensure sustainability

51 Audit before application for review of a Sustainability Decision Assessment of whether or not the verification system fulfills its purpose through control of samples and selection of procedures within the verification system Control of sampling performed by the economic operator with a reporting obligation or other third party, alternatively that sampling is performed by the auditor.

52 Reporting HBL Chapter 3, section 1 e HBF section 13 HBFS Chapter 5, section 1

53 Reporting Consignment = quantity with unique sustainability characteristics fuel category uses sustainable quantity lower heating value raw material country of origin residues/waste cellulose content of the raw material emission savings method for the determination of emission savings type of production chain claimed considerations certification that goes beyond requirements in the directive

54 Mass balance system (a) allows consignments of raw material or biofuel with differing sustainability characteristics to be mixed; (b) requires information about the sustainability characteristics and sizes of the consignments referred to in point (a) to remain assigned to the mixture; and (c) provides for the sum of all consignments withdrawn from the mixture to be described as having the same sustainability characteristics, in the same quantities, as the sum of all consignments added to the mixture.

55 Mass balance system Traceability from the feedstock production up until the release of the fuels for consumption The mass balance shall be achieved over an appropriate period of time and in a defined site Economic actors with a reporting obligation may regard their tax warehouses in Sweden as a single site

56 Mass balance system Consignments which would normally be in physical contact can be considered a mixture Consignments which can be physically separated can only be considered a mixture if they are the same type of biofuel/bioliquid or feedstock/raw material

57 Mass balance achieved during a specific time period and within a site Ethanol 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz Ethanol 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz

58 One type of biofuel not physically mixed, but stored within the same site Ethanol 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz Ethanol 500 m 3 Ethanol 500 m 3 Ethanol 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz

59 Two different types of bioliquids which are not physically mixed, but stored within the same site Palmoil 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz NOT ALLOWED TO SWITCH SUSTAINABILITY CHARACTERISTICS BETWEEN DIFFERENT TYPES OF BIOFUELS/BIOLIQUIDS/ FEEDSTOCKS IF THEY HAVEN T BEEN PHYSICALlY MIXED IN THE SAME TANK Palmoil 500 m 3 Rapeseed oil 500 m 3 Rapeseed oil 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz

60 Physically mixed in the same tank and different types of bioliquids Palmoil 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz Rapeseed oil 500 m 3 RAPSOLJA 500m 3 Rapeseed oil 500 m 3 PALMOLJA 500m 3 Palmoil 500 m 3 sustainability characteristics xxxxx xxxxx xxxxx zzzzzz zzzzzz zzzzzz

61 Revoking a sustainability decision The sustainability decision can be revoked by SEA if: the econonomic operator, or someone in the production chain break the rules of the verification system so that: The biofuels reported can not (with good reason) be considered sustainable The sustianability can not be satisfactory assessed it is obvious that the reported biofuels can not be considered sustainable even though the commitments in the verification system is followed A sustainability decision shall not be revoked due to minor errors A revoked sustainability decision is in force immediately

62 Supervision by the SEA Due to supervision plan Certain aspects of the regulation (e.g mass balance or land criteria) Certain types of operators Etc. If suspicion of irregularities of particular operators, quantities or parts of verification systems SEA can request all information neccesary and can prescribe measures to be taken

63 Discussion