Resolving Responsibilities, clarifying criteria: Sustainability certification under the EU Renewable Energies Directive
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1 Resolving Responsibilities, clarifying criteria: Sustainability certification under the EU Renewable Energies Directive Presentation by Martina Gaebler, GIZ 05 July, Odessa Project: Supporting sustainable biomass production and use in Ukraine Page Seite 1 1
2 Content EU s Renewable Energies targets and its request for sustainable feedstock Why sustainability criteria and what are they? Certification as a tool to prove compliance with sustainability criteria What certification schemes can be used under the RED? Project: Supporting sustainable biomass production and use in Ukraine Page Seite 2 2
3 EU aims to increase consumption of renewable energies 20% renenewable energies in the national energy mixes by % renewable energies in the transport sector by 2020 Legal basis: Directive 2009/28/EC of 23 April 2009 (Renewable Energies Directive, RED) Biofuels are part of the solution Project: Supporting sustainable biomass production and use in Ukraine Page Seite 3 3
4 EU biofuels market potentials for Ukrainian feedstocks EU market: No biofuel selfsufficiency Imports needed Source: European Commission Joint Research Centre (2011): EU renewable energy targets in 2020: Analysis of scenarios for transport Project: Supporting sustainable biomass production and use in Ukraine Page Seite 4 4
5 Ukraine s position as a rape seed supplier to the EU 2008/ / / / /13 Production Imports thereof Ukraine Australia Canada Total Use Source: Töpfer International (USDA, ACTI, OilWorld) Project: Supporting sustainable biomass production and use in Ukraine Page Seite 5 5
6 Realising export potentials to EU bioenergy market Liquid biofuels must meet sustainability criteria in order to be counted towards these targets and receive financial support (EU Renewable Energy Directive RED) Biofuel feedstock produced in Ukraine are only attractive for the EU market if producers can prove compliance with the EU sustainability criteria Compliance can be proven by being certified under a recognised biomass certification scheme Project: Supporting sustainable biomass production and use in Ukraine Page Seite 6 6
7 Sustainability criteria for biofuels RED compliance criteria: Mitigate climate change 35% (50%) green house gas savings compared fossil fuels Land conversion Feedstock not produced on protected areas, primary forests, highly biodiverse grasslands, land with high carbon stocks or peat land (cut off Jan 2008) Trace sustainable biofuels Traceability from production to consumption (mass balance) RED reporting criteria (compliance mandatory in some schemes) Protect social rights Respect of ILO Core Labour Norms, land rights Protect the environment Protection of water, soil and air quality and quantity Project: Supporting sustainable biomass production and use in Ukraine Page Seite 7 7
8 How to proove compliance with sustainability criteria? certification schemes as a tool to show compliance Project: Supporting sustainable biomass production and use in Ukraine Page Seite 8 8
9 What is certification? Certification is used to make a claim claim compliance with EU RED sustainability criteria Certification offers a guarantee of quality or way of production guarantee that biofuel was produced in an environmentally responsible manner Certification assures credibility through control by an independent system or authority Project: Supporting sustainable biomass production and use in Ukraine Page Seite 9 9
10 What are certification schemes? Documents that tell you what to do and what not to do in your enterprise Documents that t tell the auditor how to carry out the audit Ensures that all audit firms operate according to the audit standard. Ensures that audit results are credible and comparable Standards - Compliance requirements - Checks that you respect the rules set in the standard and awards the certificate, if positive Accreditation - Quality control Certification - Guarantee system - Project: Supporting sustainable biomass production and use in Ukraine Page Seite 10 10
11 What are certification schemes? Standard d Setting Body Sets: Production Standard Chain-of-Custody/traceability Standard Recognition requirements for certifying bodies Claims Policy... Accredits and controls certifying bodies Awards certificate for biomass producer and d/ /or trader/processor Accreditation Body Certifying/Inspection Body Project: Supporting sustainable biomass production and use in Ukraine Page Seite 11 11
12 Who get certified? Individual certification Primary production Trade Processing Blending Chain of Custody Documentation Production Standard Chain of Custody Standard d Chain of Custody Standard d Chain of Cusotdy Standard d Greenhouse Gas Emissions Greenhouse Gas Emissions Greenhouse Gas Emissions Greenhouse Gas Emissions Project: Supporting sustainable biomass production and use in Ukraine Page Seite 12 12
13 Who gets certified? Farmer Group certification Primary production Trade Processing Blending Chain of Custody Documentation Production Standard Chain of Custody Standard Chain of Custody Standard Chain of Cusotdy Standard Greenhouse Gas Emissions Greenhouse Gas Emissions The first gathering point gets certified and a sample of his suppliers are verified Greenhouse Gas Emissions Greenhouse Gas Emissions Project: Supporting sustainable biomass production and use in Ukraine Page Seite 13 13
14 Which are the certification schemes under RED? Type A: Multi-stakeholder initiatives, e.g. Roundtable on Sustainable Biofuels (RSB), International ti Sustainability and Carbon Certification (ISCC), NTA 8080, etc. Type B: Private sector initiatives that have developed a scheme for the sector, e.g. REDcert (Germany), 2BSvs (France) Type C: Companies that have developed certification schemes that are only applicable in their respective business, e.g. Abengoa Bioenergía, Greenergy All schemes must be officially recognised by the EU Commission or an EU Member State Project: Supporting sustainable biomass production and use in Ukraine Page Seite 14 14
15 Recognition of certification schemes Automatically recognize Applies for recognition EU Renewable Energy Directive recognizes (EU wide authorisation) Certification System A Member State 1 National legislation Can recognize (national authorisation) Will not automatically recognise systems recognised only by MS Applies for recognition Certification System B Member State 2 National legislation Can automatically recognise systems recognised by other MS Chose CS to show compliance Biofuels Supply Chain Operators Project: Supporting sustainable biomass production and use in Ukraine Page Seite 15 15
16 State t of RED implementation ti in the EU RED fully implemented by 5 MS; 19 MS have legislation in place or in preparation; 3 MS off track Full implementation Belgium France Germany Netherlands Poland Transition period harvests expired 2011 and 2012? considered sustainable (harvest 2011) National system --?? National recognition of private systems Acceptance of EU recognised systems Acceptance of systems recognised in other EU MS Information requirements in transition period Obligated operator --? ( ) ? none none n.a. Partial information and verification Biofuels producer/importer Final distributor Final distributor Final distributor?? Project: Supporting sustainable biomass production and use in Ukraine Page Seite 16 16
17 Overview of biomass certification schemes Type A: Multi-stakeholder systems About 25 certification systems have applied for recognition Name of System Feestock EU Recognition Regional scope Bonsucro* Sugar cane global ISCC (International Carbon and All global Sustainability Certification) NTA 8080 (Dutch Sustainability Scheme) All pending global RSB (Roundtable Sustainable Biofuels) All global l RSPO (Roundtable Sustainable Palm Oil) Palm Oil ( ) Global RTRS (Roundtable Responsible Soy) Soy All outside EU *The Scheme is not recognized for Article 17(3)(c) on highly biodiverse grasslands Relevant for Ukraine Project: Supporting sustainable biomass production and use in Ukraine Page Seite 17 17
18 Overview of biomass certification schemes cont. Type B: Private sector systems Name of System Feestock EU Recognition Regional scope Abengoa RED Bioenergy Sustainability Assurance All global Ensus voluntary scheme for Ensus bioethanol production Wheat Ensus plant EU Greenergy Brazilian Bioethanol verification Sugar cane Brazil programme* Neste Oil Palm Oil (?) Pending? Type C: Company systems Name of System Feestock EU Recognition German Recognition Regional scope ll Biograce* All pending -- global REDcert All pending EU+Ukraine 2BSvs (Biomass Biofuels Sustainability voluntary scheme) *partial scheme for GHG calcualtions All -- Global Project: Supporting sustainable biomass production and use in Ukraine Page Seite 18 18
19 Who chooses the certification scheme? Obligated companies in the EU Member States and their chain operators can use any certification scheme recognised by the EU or by the respective MS In practice, the decision on which certification scheme to use is usually made by the end of the chain (e.g. trader, oil company). Guidance on how to decide on a scheme is provided by NL Agency in its Guidance on selection of certification schemes ( ) Project: Supporting sustainable biomass production and use in Ukraine Page Seite 19 19
20 The certification process Application for certification Company Pre-Assessment Close-out gaps Audit Application denied, suspension de-certification Major non-conformities Review and confirmation of findings Minor non-conformities Renewal of certificate Surveillance Corrective actions Objective evidence/follow-up audit Issuing of certificate Project: Supporting sustainable biomass production and use in Ukraine Page Seite 20 20
21 Audit preparation Certifier and applicant company sign a contract and agree on an audit date. Certifier sends an audit plan Company prepares for audit needs to know the requirements Needs to have relevant documents available Needs to make sure that t audit can proceed as planned Company conducts internal audit Certifier conducts audit Duration of audit depends on: size/complexity of company, preparedness of company, company s level of implementation of requirements Project: Supporting sustainable biomass production and use in Ukraine Page Seite 21 21
22 What does the auditor check? Read See Ask Control of documents, e.g. Maps Delivery /purchasing documents Control of processes, e.g. Responsibilities within company Management system Traceability system Site inspection, e.g. Visit of fields, visit of storage facilities Visit bookeeping department Interview staff Project: Supporting sustainable biomass production and use in Ukraine Page Seite 22 22
23 What are the costs? IT DEPENDS!! Certification system Audit company size and structure of company 3 different types of costs System fees (membership, license, certificate, registration fees; per volume) Certification fees (paying the audit service) ask the audit firms! Compliance costs (adapting your business) Example ISCC system fees Annual certification fee: Fee per metric ton: Registration fee: Optional: membership fee: 50-3,000 Project: Supporting sustainable biomass production and use in Ukraine Page Seite 23 23
24 Thank you Спасибо Project: Supporting sustainable biomass production and use in Ukraine Page Seite 24 24
25 Contact the Project Team GIZ Martina Gaebler Phone: IER Yuliya Ogarenko Phone: +38 (044) Project: Supporting sustainable biomass production and use in Ukraine Page Seite 25 25
26 Standard Documents - Examples Project: Supporting sustainable biomass production and use in Ukraine Page Seite 26 26
27 Certificates - Examples Name of certification body Name of certified company Logo of certification scheme Standard against which the company was certifiied Project: Supporting sustainable biomass production and use in Ukraine Page Seite 27 27
28 State of RED implementation in the EU Full implementation: Germany, Netherlands, Sweden, Slovakia, Hungary Legislation being developed or in place or partial implementation: France, Belgium, Portugal, Italy, Spain, UK, Austria, Portugal Not yet transposed: Finland, Greece and Poland (the European Commission decided on 22 March 2012 to send Reasoned Opinions ) Commission is currently preparing a report on the implementation status. Project: Supporting sustainable biomass production and use in Ukraine Page Seite 28 28
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