Aim and scope. The aim of this presentation is:
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1 Promoting sustainable bioenergy production & use Implementation of sustainability criteria for biofuels in Sweden Matti Parikka Swedish Energy Agency 1
2 Aim and scope The aim of this presentation is: to present the current status of the implementation of sustainability criteria for biofuels and bioliquids in Sweden planned activities supporting activities 2
3 Energy supply in Sweden The total energy supply was 612 TWh in 2008 Biomass, especially woody biomass, already contributes substantially in covering energy demands in Sweden The share of biofuels and peat has increased from 9% to 20 % ( ) This corresponds to 123 TWh (incl. 3 TWh peat) With (solid) wood fuels incl. wood pellets being about 44% The share biofuels is now 34% of the total fuel quantity (351TWh) 3
4 Total energy supply in Sweden Heat pumps in district heating plants Nuclear power Hydro power Biofuels, peat etc. Coal and coke Natural gas Crude oil and oil products Source: Swedish Energy Agency 4
5 Use of biofuels and peat in Sweden 140,0 120,0 100,0 80,0 TWh 60,0 40,0 20,0 0, Source: Swedish Energy Agency Year 5
6 Share of different biofuels in Sweden Source: Swedish Energy Agency Totally 120 TWh ~ 34% of the total quantity of Source: Swedish Energy Agency fuels (351 TWh) 6
7 Use of liquid and gaseous biofuels 4,4 TWh ~ 3,7% of the total quantity of biofuels ~ 4,2% of the total quantity of transport fuels Source: Swedish Energy Agency 7
8 Renewable energy share in Sweden 2020 target 49 / 50 % Source: Swedish Energy Agency 8
9 Incentives Renewable Energy Directive RED (2009/28/EC) Sustainability criteria for biofuels (liquid and gaseous), Implementation in progress According to the directive it should be implemented in 5 December 2010 National Renewable Energy Action Plans under Directive 2009/28/EC Ongoing activity, report to the COM in June 2010 Fuel Quality Directive FQD (2009/30/EC) 9
10 Renewable Energy Directive Target EU target, at least 20% renewable energy in 2020 Binding national targets in 2020 Targets for Sweden are: 49% renewable energy of the total final energy consumption (50% national target) 10% renewable energy of the total final energy consumption in the transport sector 10
11 Sustainability criteria Detailed rules and regulations about the criteria, calculation methods and verification Biofuels for the transport sector and bioliquids for other purposes Ethanol, FAME/RME, biogas Tall oil pitch, bio oils (MFA, palm oil, rape seed oil etc.) Solid biofuels are excluded (Report from the COM SEC(2010)65) Binding criteria not suggested, monitoring and voluntary actions A suggestion for implementation in Sweden is now on consideration at the governmental level Suggestion to a bill in 23 March 2010 The law in force 1 August
12 Fulfilment of the criteria according to the directive - Why To be able to include fuels to the binding national targets To be able to use quotas for renewable energy e.g. for the electricity certificate system and a possible biofuel quota obligation To be able to give subsidies / financial support e.g. exemption from energy tax, direct support / subsidies 12
13 Directive criteria (art. 17) Reduction of greenhouse gas emissions 35% by way of introduction (60% 2018) Calculation method according to the directive Protection of high biodiversity areas Natural forests (Primary forest and other wooded land) Protected areas (Reservs etc.) Grasslands (Natural and non natural) Protection of high carbon stock areas Wetlands Peat lands Continuously forested areas 13
14 Directive s legimate claim of a control system (art. 18) The economic actors should show that the criteria set out in art have been fulfilled: A mass balance system should be used Information should be verified by independent auditing The auditing should verify that the reported information shown by economic operators are accurate, reliable and protected against fraud 14
15 Calculation method for the GHG reductions (art. 19) Appointed standard values Actual values according to the appointed method Combination of actual / current values and disaggregated standard values 15
16 The Law Law on sustainability criteria for biofuels and bioliquids Suggestion to a bill 23 March 2010 In force 1 August 2010 Contents Introductory regulations Definitions National definitions e.g. for wastes and residues Harmonised with the waste directive Sustainability criteria Responsibility to report Economic operators who are obliged to report (Annual) reporting Independent auditing Responsible authority for supervision» The Swedish Energy Agency (Sustainable Criteria Authority) Sanctions / penalties Rules of appeal Temporarily regulations 16
17 Wide authorization in law The Law on sustainability criteria for biofuels and bioliquids : The law is aimed to be flexible, i.e. it gives the government or a government authority wide authorization to promulgate further regulations It is also possible to adapt completions and elucidations from the COM Details are going to be presented in ordinances, authority regulations and general advices 17
18 Resulting effects on other laws and Changes in: regulations Law on electricity certificates Changes in the law on electricity certificates and the law on energy taxes should be in force 1 January 2011 Law on energy taxes The terms concerning exemption of tax for certain biofuels is applied from 1 January
19 Judicial consequences between different authority domains Terms / conditions that the criteria is fulfilled in the Law on electricity certificates and the Law on energy taxes The process: The Swedish Energy Agency (electricity certificates) and the Swedish Tax Agency make decisions independently of the Sustainability Criteria Authority (also Swedish Energy Agency) in matters there the terms are valid The Sustainability Criteria Authority makes a decision according to the Law on sustainability criteria Delivery of decision from the Sustainability Criteria Authority to other authorities Reconsideration of the earlier decision (if required) Changes in the Law on electricity certificates and the Law on energy taxes Dead-lines for reconsideration 19
20 Implementation near future activities A lot of work is still to be carried out before the 5 December 2010 Preparation of regulations and ordinances during 2010 Involvement Swedish Energy Agency, other authorities concerned, Government offices, and the bioenergy industry Verification procedures Definitions and methods for calculation of reductions of the GHG emissions Biofuel greenhouse gas emissions align calculation in an Europe project (BioGrace) Concerted Action on the implementation of RES-directive (CA-RES) Complementary information from COM concerning: Criteria for biodiversity Criteria for solid biofuels Solid biofuels are excluded (Report from COM SEC(2010)65) Indirect land-use change (ILUC) Elucidations and details in the comitology 20
21 Conclusions concerning the implementation in Sweden Implementation Fragmentary directive There is only short time for the implementation Complementary additions from the COM? Different national solutions and interpretation of the directive IT applications Big burden for (many) economic operators Possible exceptions Risk allocation Claim of verification Reasonable, possible, trustworthy level! Different certification solutions or what else? Independent verification Qualifications? Certificates in all levels / along the whole chain? Complex and unclear rules and calculations Support and information needs Elaboration of the details / directions / instructions during 2010 Co-operation procedures 21
22 Many Thanks for Your Attention Ph. D. For. Matti Parikka Swedish Energy Agency Eskilstuna, Sweden 22
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