Abstract

In 2010, the Renewable Energy Directive (RED) came into force in the EU and establishes a framework for achieving legally binding greenhouse gas (GHG) emission reductions. Only sustainable biofuels can be counted towards Member State targets. The aim of this paper is to calculate realistic and transparent scenario-based CO2-emission values for the GHG emissions savings of palm oil fuel compared with fossil fuel. Using the calculation scheme proposed by the RED, we derive a more realistic overall GHG emissions saving value for palm oil diesel by using current input and output data of biofuel production (e.g. in South-East Asia). We calculate different scenarios in which reliable data on the production conditions (and the regarding emission values during the production chain) of palm oil diesel are used. Our results indicate values for the GHG emissions savings potential of palm oil biodiesel not only above the 19 % default and 36 % typical value published in RED but also above the 35 % sustainable threshold. Our findings conclude the more accurate GHG emissions saving value for palm oil feedstock for electricity generation to be 52 %, and for transportation biodiesel between 38.5 and 41 %, depending on the fossil fuel comparator. Our results confirm the findings by other studies and challenge the official typical and default values published in RED. As a result, the reliability of the Directive to support the EU’s low-carbon ambitions is being undermined, exposing the EU and commission to charges of trade discrimination and limiting the ability of Member States to achieve their legally binding GHG emission reductions.

Highlights

  • The European Union (EU) introduced an ambitious renewable energy policy in 2003, which has been further elaborated since

  • Our results confirm the findings by other studies and challenge the official typical and default values published in Renewable Energy Directive (RED)

  • Greenhouse gas emissions from the production and transport of fuels, biofuels and bioliquids shall be calculated as: EB 1⁄4 eec þ el þ ep þ etd þ eu þ esca þ eccs þ eccr þ eee where EB, total emissions from the use of the fuel; eec, emissions from the extraction or cultivation of raw materials; el, annualised emissions from carbon stock changes caused by direct land use change; ep, emissions from processing; etd, emissions from transport and distribution; eu, emissions from the fuel in use; esca, emission saving from soil carbon accumulation via improved agricultural management; eccs, emission saving from carbon capture and geological storage; eccr, emission saving from carbon capture and replacement; and eee, emission saving from excess electricity from cogeneration

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Summary

Introduction

The European Union (EU) introduced an ambitious renewable energy policy in 2003, which has been further elaborated since . One requirement of the EU Renewable Energy Directive for sustainable biofuels is that ‘‘there should be no damages to sensitive or important ecosystems while cultivating energy feedstocks’’ (EU 2009). This includes the absence of conversion of land with high biodiversity value and the conversion of land with high carbon stock. The Directive requires that the greenhouse gas emissions associated with production and use of biofuels are at least 35 % lower than those associated with production and use of conventional fuels This threshold will rise to 50 % by 2017 and will increase further to 60 % in 2018. This could be confirmed with data obtained from FAOSTAT (2006) for Malaysia where the planted area of rubber, cocoa and coconuts has been decreasing from around the year 1990 to the year 2005 while the planted area of oil palm has been increasing at the same rate during the same period of time

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