ARGENTINA ESTABLISHING A SUSTAINABLE AND CERTIFIED SUPPLY CHAIN FOR EU IMPORT OF BIODIESEL FROM SOY
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2 ARGENTINA ESTABLISHING A SUSTAINABLE AND CERTIFIED SUPPLY CHAIN FOR EU IMPORT OF BIODIESEL FROM SOY Jeroen Douglas Director Solidaridad South America
3 THE CONTRIBUTORS TO THIS PROJECT Donor Project coordinator Partners ARGOS ENERGIES 3
4 PROBLEM DEFINITION AND AIM: THE GREENHOUSE GAS EMISSION SAVINGS BY USING BIODIESEL/LIQUIDS AS PER EU-RED MUST BE AT LEAST 35%, TO BE INCREASED TO 50% AS OF 2017 AND TO 60% AS PER CURRENTLY, THE DEFAULT VALUE FOR SOY IS SET AT 31%, BELOW THE THRESHOLD LEVEL. HOWEVER, GIVEN A TYPICAL VALUE OF 40% FOR SOYBEAN BIODIESEL, THERE IS REASON TO BELIEVE THAT THE ACTUAL VALUE FOR SOY IN ARGENTINA WILL MOST LIKELY EXCEED THE MINIMUM GREENHOUSE EMISSIONS SAVINGS STANDARD. 4
5 5 PROJECT OBJECTIVES: 1. IMPROVING THE RTRS IT PLATFORM 2. IDENTIFY TWO POTENTIAL RTRS CERTIFIED SOY BIODIESEL SUPPLY CHAINS 3. FIELD MEASURING ON GHG EMISSIONS 4. SELLING RTRS CERTIFIED SOY BIODIESEL TO EUROPE 5. DISSEMINATION OF RESULTS 5
6 . RTRS Trading Plat form : I ntroduction 1. DEVELOPMENT OF THE REGISTRY PLATFORM: his manual describes the functionalities of the RTRS Trading Platform. Please take into count that possibly customized functionalities and updates in the ChainPoint software n outdate this manual. In case of doubt contact Chainfood support by sending an e- ail to support@chainfood.com. THE DEVELOPMENT OF THE RTRS IT PLATFORM WAS DONE BY CHAINFOOD. IT ALLOWS FULL TRACK AND l TRACE + CERTIFICATE TRADE hen clicking on the left hand bottom button Market p ace the selected company will isappear on the top and the following screen will appear: 6
7 2. IDENTIFICATION OF TWO SOY- TO-BIODIESEL PILOT CHAINS: PRODUCER LOS GROBO AND PROCESSOR LOS MOLINOS CERTIFIED (RTRS P&C AND RTRS COC RESPECTIVELY) 150,000 HECTARES; SPIN-OFF: RTRS P&C COMPLIANCE CRITERIA WIDESPREAD PROMOTED. 7
8 3. FIELD MEASUREMENTS ON GHG BUDGET: INTA REPORT ON METHODOLOGY AND RESULTS GHG MEASUREMENTS, IN TERMS OF THE GHG REDUCTION POTENTIAL, TAKING INTO ACCOUNT THE ACTUAL VALUES MEASURED IN THE FIELD, PERCENTAGES VARY BETWEEN 54% AND 56%. 8
9 THE PROJECT HAS CONTRIBUTED TO SUSTAINING THE PRODUCTION AND PROCESSING ACTIVITIES RELATED TO SOY 4. BIODIESEL SEPT IN 2011, ARGENTINA LOS BY GROBO PROMOTING SUSTAINABILITY CRITERIA RELATED TO RTRS P&C, BY DEMONSTRATING AND LOS THE MOLINOS GHG REDUCTION SIGNED POTENTIAL IN A THE SECTOR, BY CREATING AWARENESS ON ADHERING TO CONTRACT SOCIAL AND ENVIRONMENTAL WITH COMPLIANCE SHELL CRITERIA. ON ALTHOUGH FIELD MEASUREMENTS ON GHG EMISSIONS CONTINUE RTRS TO (AND TAKE PLACE, ISCC) BASED CERTIFIED ON THE FIRST RESULTS OF THE MEASUREMENTS AVAILABLE, AN EXPECTED SOY BIODIESEL. GHG REDUCTION POTENTIAL LOS GROBO OF 54%-56% CERTIFIED IS EXPECTED. PART OF ITS PRODUCTION AGAINST RTRS P&C. THE PARTNERS HAVE BEEN PROMOTING THE RTRS P&C SUSTAINABILITY STANDARDS TO VARIOUS PRODUCERS, PROCESSORS AND OTHER STAKEHOLDERS IN THE BIOMASS SUPPLY CHAIN IN ARGENTINA. VARIOUS TENS OF THOUSANDS OF TONS WERE EXPORTED TO THE EU. 9
10 5. DISSEMINATION, RECOMMENDATION AND FOLLOW- UP: ON MAY 13, 2013 SOLIDARIDAD ORGANIZED A DISSEMINATION EVENT AT CARLOS CASARES TO LAUNCH THE NITROX SENSOR AND TO SHARE THE PRELIMINARY RESULTS. PARTICIPANTS FROM INTA, RTRS, LOS GROBO, SOLIDARIDAD PLUS REPORTERS WERE PRESENT DURING THIS EVENT WHICH WAS LIVE BROADCASTED BY STREAMING VIDEO. 10
11 MAIN OUTCOME OF THE PROJECT: THE PROJECT HAS CONTRIBUTED TO SUSTAINING THE PRODUCTION AND PROCESSING ACTIVITIES RELATED TO SOY BIODIESEL IN ARGENTINA BY PROMOTING SUSTAINABILITY CRITERIA RELATED TO RTRS P&C, BY CERTIFYING THE LOS GROBO-MOLINOS-SHELL CHAIN, BY EXPORTING RELEVANT VOLUME AND BY DEMONSTRATING THE GHG REDUCTION POTENTIAL IN THE SECTOR, BY CREATING AWARENESS ON ADHERING TO SOCIAL AND ENVIRONMENTAL COMPLIANCE CRITERIA. 11
12 ALTHOUGH FIELD MEASUREMENTS ON GHG EMISSIONS CONTINUE TO TAKE PLACE, BASED ON THE FIRST RESULTS OF THE MEASUREMENTS AVAILABLE, A GHG REDUCTION POTENTIAL OF 54%-56% IS EXPECTED. 12
13 LESSONS LEARNED: 1. THE EU HAS SHOWN TO BE AN UNRELIABLE PARTNER. PROHIBITIVE TARIFFS FOR ARGENTINE SOYBASED BIODIESEL HAS DESTROYED THE BUSINESS; NO TARGET TO DECARBONIZE TRANSPORT FUELS BY THE GHG REDUCTION POTENTIAL IS ESTIMATED TO BE BETWEEN 54% AND 56%. THERE IS REASON TO BELIEVE THAT THE ACTUAL VALUE FOR SOY IN ARGENTINA WILL MOST LIKELY EXCEED THE EU MINIMUM GREENHOUSE EMISSIONS SAVINGS STANDARD OF 40%. 3. THE PROJECT HAS EXPERIENCED STRONG COMPETITION BETWEEN 2BSVS (BIOMASS BIOFUELS SUSTAINABILITY) VOLUNTARY SCHEME, ISCC (INTERNATIONAL SUSTAINABILITY AND CARBON CERTIFICATION) AND RTRS ON THE BIODIESEL MARKET. DOWNGRADING ON STANDARDS. 13
14 RECOMMENDATIONS FOR POLICY: INSIDE ARGENTINA: 1. LOCAL MARKET OBLIGATION MUST RAISE FROM 8 TO 10 PERCENT IN 2014 TO OFFSET SMALLER EXPORTS DUE TO EU MARKET RESTRICTIONS. 2. PROMOTION AND RECOGNITON BY THE ARGENTINE GOVERNMENT OF CERTIFICATION SCHEME FOR BIODIESEL WILL ENHANCE SUSTAINABILITY AND SECTOR IMAGE. IMPROVED ACCESS FOR SOY OIL TO PREMIUM MARKETS. TOWARDS THE EU: 1. USE THE INTA DATA GENERATED BY THE PROJECT ON GHG REDUCTION POTENTIAL (BETWEEN 54% AND 56%) FOR NEGOTIATIONS AT THE EU, SO AS TO REDUCE THE PROHIBITIVE DUTY OF 24.6 PERCENT ON BIODIESEL IMPORTS FROM ARGENTINA. 2. POLICY ON DECARBONIZED TRANSPORT FUELS FOR 2030 MUST BE STRNGTHENED URGENTLY. 14
15 CHANGE THAT MATTERS 15
16 JEROEN DOUGLAS solidaridadnetwork.org /company/solidaridad 16
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