Biofuels in the Greater Mekong Subregion: Energy Sufficiency, Food Security, and Environmental Management

In the Greater Mekong Subregion (GMS), a growing demand for biofuels could help support the agriculture sector and provide an alternative source of energy. However, if deployed unsustainably, biofuels development can be associated with numerous risks that have negative ramifications for human development. This paper reviews existing literature and integrates various themes to provide an overview of four main issues related to biofuels deployment in the GMS: the need for alternative energy, risks to food security, considerations for environmental management, and opportunities for rural development. This paper was prepared as a discussion piece for the GMS 2020 International Conference (20–21 February 2012 in Bangkok, Thailand).

Biofuels have been the focus of intense interest, discussion, and debate in recent years. Spurred on by the adoption of policies and incentives to support their increased use in the European Union (EU) and the United States (US), both global production and trade of biofuels have expanded rapidly in the last decade (IEA 2010a). In response, several Asian governments announced ambitious plans to promote biofuels production for both domestic consumption and export (Zhou and Thomson 2009) and, as a result, the total production of biofuels in Asia increased from just over 5 billion liters in 2002 to almost 11 billion liters in 2010 (OECD-FAO 2011).

For decision makers in the Greater Mekong Subregion (GMS),1 growing global demand, particularly for first-generation biofuels,2 could provide a new market for existing agricultural products, and help support the agriculture sector, which sustains the majority of the region’s population. It has been argued that due to the availability of farm land, abundant labor, and favorable weather conditions in the subregion, biofuel expansion could help farmers diversify their activities and earn additional income (Malik et al. 2009). Conversely, experience from the subregion and elsewhere has shown that, if deployed unsustainably, biofuels development can be associated with numerous risks, particularly in terms of food security, impacts on soil and water quality, and biodiversity, which in turn have negative ramifications for human development (USAID 2009).

Much work has been done on the regional impacts of biofuel deployment in Southeast Asia (Elder et al. 2008, USAID 2009, Zhou and Thomson 2009). Much of the work considering the GMS, however, has either focused on an individual aspect of biofuel deployment, such as impacts on trade (Yang et al. 2009) and employment (Malik et al. 2009), or has presented results of case studies from individual countries (ERIA 2009, Shepley et al. 2009). This paper draws extensively on existing literature and integrates various themes to provide an overview of three main issues related to biofuels deployment within the overall context of energy demand and environmental trends in the GMS. The initial sections of the paper describe the energy utilization context and biofuels industry in the subregion, and analyze the extent to which biofuels development in the GMS could offset fossil fuel demand under different scenarios. Subsequent sections of the paper discuss three major issues related to biofuels development in the GMS—food security, environmental management, and rural development. Finally, recommendations are made on how policies need to be designed and implemented to ensure that the production and utilization of biofuels in the GMS may be sustainable.

ADB. Pradeep Tharakan, Naeeda Crishna, Jane Romero, and David Morgado No.8.January 2012

Biofuels in the Greater Mekong Subregion: Energy Sufficiency, Food Security, and Environmental Management x

Brasil.Institutional Framework for Sub-salt Oil Production

This consultancy will support the National Agency of Petroleum, Natural Gas and Biofuels (ANP) in the development of the new regulatory framework and of an appropriate institutional framework for the economic use of the sub-salt reserves.

The document will provide detail on who are the different actors involved in the process, including the definition of the areas to the realization of production, what are their roles, and what are the laws and regulations governing their actions. Also, the study intends to clearly identify and differentiate the missions and responsibilities of the different authorities, so as to avoid inefficiencies and overlap.

In particular, in relation to ANP (the National Agency of Petroleum, Natural Gas and Biofuels) and PPSA (Pré-Sal Petróleos SA, the sub-salt company) the study should consider a transition phase, where ANP will act as PPSA. Thus, the study should suggest what would be the decision-making processes and the major administrative tasks that should be incorporated into ANP which will subsequently be transferred to PPSA.These objectives are consistent with the country strategy in two key areas: (a) productivity and infrastructure ... to use public-private partnership models in new investments ... and (b) modernization of the state and institutional strengthening (as contained in the document GN-2570 of May 4, 2010).

IDB. IBR-T1206 : Institutional Framework for Sub-salt Oil Productions

Barbados to diversify energy matrix, promote sustainable energy sources with IDB assistance

The Inter-American Development Bank (IDB) has approved a $70 million loan to help Barbados reduce its dependence on fossil fuels by diversifying its energy matrix, promoting sustainable energy sources, and supporting power saving efforts.

The operation, the second in a series of two programmatic loans for the sector, will support policy and legislation moves aimed at promoting renewable energies as well as the rational and efficient use of fossil fuels.

As a result, Barbados is expected to reduce its electricity consumption by 19 percent by 2029.

Greater efficiency will also enable Barbados to cut its oil import bill by about 30 percent over a 20-year period, yielding cumulative savings of approximately $600 million. This could have a dramatic economic impact on the population at large, as soaring prices of oil used for power generation mean that Barbados residential users currently face one of the highest electricity rates in the world—$0.30 per kilowatt hour.

Under the plan, the country will aim to have 29 percent of electricity consumption come from renewable sources such as photovoltaic, solar water heating, wind, biomass cogeneration, and waste-to-energy projects by 2029.

The program will also advance plans to promote the use of biofuels by blending ethanol with gasoline, encourage the use of natural gas as a substitute for other types of fossil fuels, and replace incandescent light bulbs with more efficient alternatives.

The program will enable Barbados to reduce greenhouse gas emissions by around 4.5 million tons of carbon dioxide equivalent by 2029; it will support energy sector climate-change initiatives; and will help fund institutional strengthening, public education and awareness, and capacity building drives to promote sustainable energy and conservation initiatives.

The loan is for a 20-year term, with a five-year grace period, and at a variable interest rate based on LIBOR

IDB. News Releases.Nov 8, 2011

Future Prospects for Industrial Biotechnology

The field of industrial biotechnology has moved rapidly in recent years as a combined result of international political desire – especially in the case of biofuels – and unprecedented progress in molecular biology research that has supplied the enabling technologies. Different geographical regions have different priorities, but common drivers are climate change mitigation and the desire for energy independence.

Now, industrial biotechnology has reached the centre of scientific and political attention. At no time in the past has there been a more pressing need for coherent, evidence-based, proportionate regulations and policy measures; they are at the heart of responsible development of industrial biotechnology.

This publication examines the international drivers, the enabling technologies fast-tracking industrial biotechnology, industry trends, some of the products that are appearing on the market, industry structure and finance, and finally policy measures and trends. It examines separately biofuels, biobased chemicals and bioplastics.

It is quite clear that a supportive policy framework for the development of biofuels exists in many countries, but that no such framework is in place for biobased chemicals and bioplastics. This seems at odds with the apparent need for the integrated biorefinery, where chemicals and plastics production will significantly improve profitability when produced alongside transportation fuels.

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Table of contents

Executive summary
Chapter 1. Introduction – Scope and drivers for industrial biotechnology
Chapter 2. Emerging synthetic enabling technologies
Chapter 3. Trends in industry and products
Chapter 4. Current high-visibility industrial biotechnology products
Chapter 5. Business organisation and finance in industrial biotechnology
Chapter 6. Biotechnology policy – Developments, implications and conclusions

Browse the full publication free on line

Pages: 140 October 2011 ISBN 978-92-64-11956-7

Renewable Fuel Standard: Potential Economic and Environmental Effects of U.S. Biofuel Policy

Committee on Economic and Environmental Impacts of Increasing Biofuels Production; National Research Council

In the United States, we have come to depend upon plentiful and inexpensive energy to support our economy and lifestyles. In recent years, many questions have been raised regarding the sustainability of our current pattern of high consumption of nonrenewable energy and its environmental consequences. Further, because the United States imports about 55 percent of the nation's consumption of crude oil, there are additional concerns about the security of supply. Hence, efforts are being made to find alternatives to our current pathway, including greater energy efficiency and use of energy sources that could lower greenhouse gas (GHG) emissions such as nuclear and renewable sources, including solar, wind, geothermal, and biofuels. The United States has a long history with biofuels and the nation is on a course charted to achieve a substantial increase in biofuels.

Renewable Fuel Standard focuses on biofuels and evaluates the economic and environmental consequences of increasing biofuels production. The report describes biofuels produced in 2010 and projected to be produced and consumed by 2022, reviews model projections and other estimates of the relative effects of increasing biofuels production as a result of Renewable Fuels Standard, as amended by EISA (RFS2), on the prices of land, and discusses the potential environmental harm and benefits of biofuels production and the barriers to achieving the RFS2 consumption mandate.

Summary

Report in Brief