Background Paper on Biofuels Industry Development in Africa at the AU/Brazil/UNIDO HIGH LEVEL SEMINAR ON BIOFUELS IN AFRICA 30th July - PowerPoint PPT Presentation

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Background Paper on Biofuels Industry Development in Africa at the AU/Brazil/UNIDO HIGH LEVEL SEMINAR ON BIOFUELS IN AFRICA 30th July

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PRESENTE PAR PHILIPPE NIYONGABO, CHEF DE DIVISION ENERGIE COMMISSION DE L UNION AFRICAINE Challenges Ahead Environmental Sustanability Forest Depletion ... – PowerPoint PPT presentation

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Title: Background Paper on Biofuels Industry Development in Africa at the AU/Brazil/UNIDO HIGH LEVEL SEMINAR ON BIOFUELS IN AFRICA 30th July


1
Background Paper on Biofuels Industry
Development in Africaat the AU/Brazil/UNIDOHIGH
LEVEL SEMINAR ON BIOFUELS IN AFRICA30th July
1st August, 2007 
PRESENTE PAR PHILIPPE NIYONGABO, CHEF DE DIVISION
ENERGIE COMMISSION DE LUNION AFRICAINE
2
INTRODUCTION/BACKGROUND
  • Petroleum fuel faces acute peaking problems due
    to
  • ever increasing demand in the face of dwindling
    production rate
  • instabilities in the centres of petroleum
    production,
  • Results Huge swings in crude oil price
    affecting national and global economies.
  • Renewed interest in biofuel as an alternate
    sustainable fuel to augment energy-security and
    avert the associated environmental issues.
  • Biofuels are used for lighting and powering
    engines.

3
  • Production and consumption of liquid biofuels for
    transport accounts for lt4 of road transport
    fuels worldwide but growth rates and future
    potentials are significant.
  • Biofuels promotion in developing countries can
    assist achieve the Millennium Development Goals
    (MDGs) through poverty reduction, health impact
    and climate change.
  • Africa, having vast land, varieties of biofuels
    feedstocks, favourable climate for growing many
    of the energy crops and low labour cost ought to
    take advantage of this emerging industry and
    market.

4
PROPOSED VISION STATEMENT FOR BIOFUELS IN
AFRICA
  • Enhancing rural economy through integrated
    bioenergy and agro-industrial development
  • decrease energy-security risks associated with
    crude oil importation by local production and
    consumption of biofuels
  • Creation of numerous jobs from the farming to the
    marketing/exportation of products
  • Sustainable and environmentally friendly pack of
    biofuels production methods
  • improvement on the existing agricultural and
    forestry policies and practices
  • Large scale mechanised farming through
    cooperatives
  • Well-directed RD and other support systems with
    a focus on developing new and good farming
    methods
  • see biofuels development as an agricultural
    promotion with an energy-benefit
  • avoid becoming raw material producer for the
    biofuels industry
  • Successful pathways chartered by nations such as
    Brazil, USA, India, etc.

5
Challenges Ahead
  • Environmental Sustanability
  • Forest Depletion Biodiversity Theat
  • Pollution
  • Land Utilisation
  • Social Sustainability
  • Job Creation
  • Rural Development
  • Food Security
  • Labour Issues
  • Land and Water Acces
  • Health
  • Fuel Burden
  • Economic Sustainability
  • Objectives of Proposed Biofuels Development
    Programme in Africa

6
Objectives of the First High-Level
AUBrazil/UNIDOBiofules Seminar in Africa
  • To brief policy makers, the private sector and
    regional institutions on the development of
    bio-fuels and their importance to Africa
  • To explore the possibilities of Biofuels in
    Africa while ensuring a balance between the
    potentials, risks and trade-offs of Biofuels
  • To bring together stakeholders in the Biofuel
    sector to develop a common strategic plan for the
    development of this new source of energy in
    Africa and
  • To facilitate the development of viable policies
    and strategies on the Biofuels Industry in Africa

7
  • Broad areas for assessment and development
    include the following
  • Current Status and Plans in Africa for each of
    the sector sub-groups (e.g. biogas, biodiesel,
    bioethanol, gel fuels and gasification)
  • Trade and consumption issues, sustainability,
    potential risks and trade-offs
  • Costs and benefits of biofuels development
  • Policy frameworks (Regulation, Investment and
    Financing, Technology Transfer, Environment, etc)
  • Roles of national governments, regional economic
    communities, development partners and local as
    well as foreign private sector

8
EXPECTED OUTCOMES
  • Deliberations are to aid in formulating sets
    strategic guidelines and policies in developing
    biofuels in Africa. Discussion of the challenges
    benefits covers
  • Trade and Consumption Benefits
  • Biofuels trade is deemed modest currently but is
    growing rapidly with the increasing mandate usage
    in USA and the EU.
  • Increasing Chinese demand for energy.
  • Exportation of finished products considered
    cheaper than bulky biomass.
  • Win-win opportunity to exporting importing
    countries/regions.
  • Tariffs and non-tariff measures Distortion of
    international biofuels markets.
  • Total biofuels use in Africa - Expected to remain
    small
  • Policies targets - Domestic and the growing
    international biofuels market.

9
  • Poverty Reduction
  • Biofuels industry has a huge employment
    potential can increase the incomes of Africans
    thereby lifting them from the poverty trap.
  • Resources available for these are
  • the vast land resources and
  • varied nature of the feedstocks
  • favourable climate
  • human resources
  • Biofuels market can aid farmers to earn better
    incomes for their produce due to the expanded
    market.
  • However, tendency to start a vicious cycle of
    soaring prices of food and food products must be
    carefully analysed and avoided.

10
  • Environmental Benefits
  • It is accepted that at least 13 per kilometre
    savings can be obtained using biofuels against
    fossil fuel (IEA, 2006).
  • Certificates and eco-labelling of biofuels and
    products based on robust internationally
    acceptable sustainable criteria could be good
    instruments.
  • The potential of reducing climate change via
    decrease in greenhouse gases (GHG) has to be
    assessed on the full life-cycle of the biofuel
    feedstocks.

11
PROPOSED INSTITUTIONAL FRAMEWORK
  • Common Policy for Africa coordinated by the AU,
    should be implemented and use RECs as mediums.
  • Initiatives that could boost development of the
    sector and advocated for establishment are
  • African Biofuel Board,
  • Centres of Excellence and
  • Biofuel Fund for Africa.
  • Encourage African oil producing countries to
    invest in biofuels in non-oil producing countries
    for mutual benefit.
  • Investigate implement policies on Stabilization
    Fund to relieve the pressure of high oil prices
    on ongoing development projects.

12
Policy Options and Priorities
  • Comprehensive policy integrating RD, investment,
    production, land use, land ownership, loss of
    biodiversity, use of GMOs, GHG, soil erosion and
    other soil degradation, water use and water
    contamination, human health impacts and labour
    conditions has to be implemented at continental
    level.
  • Translation of formulated policies into long-term
    development space available for the production of
    a large variety of feedstock species.
  • Policies to settle land acquisition issues in
    order to facilitate private investment to be
    formulated.
  • Mechanised farming appears to be a key component
    in the development of this industry. But
    large-scale models run the risk of squeezing out
    small-scale producers and the associated
    sustainable development benefits.

13
Policy Objectives
  • Objectives to be targeted include
  • Food and energy security - diversification and
    progressive substitution of oil
  • Reduction of oil import bill
  • Wealth creation and poverty reduction
  • Employment creation
  • Foreign exchange generation
  • Significant climate change mitigation impacts
  • Uptake of clean cooking technologies using
    ethanol gel fuels and vegetable oil.

14
Policy Guidelines
  • Policy guidelines to be listed as short term,
    medium term and long term and recommended to
    member states for adoption.
  • List below could be incorporated in the
    discussions
  • Harmonization of National Policies at Continent
    level
  • National Policies Development and Implementation
  • Environment, Social, Health and Safety
    Certification Systems
  • Statistics and Information
  • Research and Development Programmes
  • African Biofuel and International Trade
  • Capacity Building, Education and Public Awareness
  • Land Tenure and Ownership
  • Creation of a Common Fund for Biofuels
  • Rural Labour
  • Innovative Financing Mechanisms
  • Rural Labour
  • Ownership Structure
  • Mandatory Blending Percentage Accompanied by
    Sustainability Measures

15
CONCLUSIONS RECOMMENDATIONS
  • The impact of integrated biofuels system on
    rural/industrial development is envisaged to be
    enormous in increasing access to power and
    improving her economy.
  • Following the success stories of biofuels
    implementation and concerns for global demand and
    possible problems, the following recommendations
    have been made
  • Policy Support Biofuels strategy devised would
    have to have a strong government policy framework
    to ensure availability of market through
  • increased awareness creation via
    workshops/seminars on the advantages of using
    biofuels over petroleum fuels.
  • provision of incentives. Fiscal incentives are
    necessary to create a viable and successful
    industry for manufacturing biofuels and such
    incentives could be linked to carbon savings.
  • The public acceptance of biofuels as a visible
    and important industry will be based on
    manifestation of continental, REC and national
    governments commitment.

16
  • Poverty Reduction This industry can generate
    enormous number of jobs and can also raise the
    local economy. The sustainability to the rural
    areas could be ensured if the farmer is cited as
    the pinnacle of the crop production and oil
    processing systems, in the short to medium terms.
  • Standing on the shoulders of giants Lessons
    learnt from other nations and regional blocks
    could be used to carve Africa out to become a
    successful biofuel centre.
  • Great potential exist for developing innovative
    small companies and clusters innovation through
    well-directed RD and other support systems. Many
    other benefits and added-value can arise from
    enhanced biodiversity to new products and crops.
  • Not withstanding the above, Africa should avoid
    becoming raw material producers for the biofuels
    industry.

17
  • THANK YOU !
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