International certification of Bogdan Silenkov Kiev, 3 June 2013 sustainable biomass Global presence and local service

Europe z Belgium Asia z Bulgaria z Bangladesh z France z China z Germany z Cyprus z Hungary z Hong Kong z Ireland z India z Italy z Indonesia z Netherlands z Japan z Poland z Kazakhstan z Portugal z Korea z Romania z Malaysia z Spain z Russian Fed. z Sweden z Sri Lanka z Switzerland z Thailand z Ukraine z Turkey z UK z Vietnam zPhilippines Middle East z Iran z Iraq z Israel Americas Africa z Jordan z Argentina z Egypt z Lebanon z Brazil z Ethiopia z Saudi Arabia z Colombia z Morocco z Syrian Arab Republic z Canadá z South Africa z Dominican Rep z Tunisia z Ecuador z Ivory Coast z Netherlands Antilles z Ghana z Paraguay z Peru z Uruguay z USA Oceania z Mexico z Australia zEquacor 9 More then in 60 countries 9 120 offices 9 3500 employees International experience of Peterson Control Union for sustainable biomass certification

Countries, in which PCU certified biomass and bioliquids PCU –is the second certification body in the world, for the numbers ISCC certificates issued (720 certificates) Sustainability what does it mean?

Sustainable business –is a growing and profitable business which brings a social and economic results and at the same time takes care of the enviroment Examples of non‐ • gender inequities mean women sustainable business: do the farming but can’t make decisions •Health and Safety is an alien concept SOCIAL FACTORS

• irrigated crop in an •No security of land SUSTAINABILITY area where water tenure for farmers •over‐application of ECONOMIC ENVIROMENTAL supply is low and FACTORS FACTORS fertiliser is “normal” risky practice •in part of the world •no access to credit for where farming is farmers which limits known to be polluting investment opportunity rivers Legal requirements

All certification programs for biomass are based on the Directive 2009/28/EC:

Directive 2009/28/EC: Renewable Energy Directive (RED, April 2009)

Of particular relevance:

Article 17: Sustainability criteria for biofuels and bioliquids Article 18: Verification of compliance with the sustainability criteria for biofuels and bioliquids Article 19: Calculation of the greenhouse gas impact of biofuels and bioliquids

Annex: Rules for calculating GHG impact Legal requirements to ensure sustainability are defined in the EU‘s Renewable Energy Directive (RED)

Requirements for biofuels and their production

GHG Emissions No areas with high carbon No areas with high stocks biodiversity • Peatlands and wetlands • Minimum GHG savings • Forests and wooded of 35% areas • Other areas with trees higher 5 m... • Possible to use default •Protected natural areas values •Highly biodiverse grassland You have a choise: 13 voluntary schemes for certification of sustainable biomass/biofuels:

ƒ ISCC are relevant ƒ REDcert for Ukraine ƒ RBSA (Abengoa) ƒ Bonsucro EU ƒ RTRS EU RED ƒ RSB EU RED ƒ 2BSvs ƒ Greenenergy ƒ Ensus ƒ Red Tractor ƒ SQC ƒ NTA 8080 ƒ RSPO RED Comparison of biomass certification schemes Subprograms of ISCC How to find the best program for us?

Theory: The choice of the certificate holder/client.

Practice: What program should be used determine the last object of the supply chain. Who should be certified?

Farmer / Raw‐ First gathering Conversion material Oilmill Trader point source unit

All objects of the supply chain should be certified

‐ responsible for farmers preparation and certification ‐ each farmer is responsible for their results

‐ only if physical ‐ Can also undergo individual movement of the goods certification How to find the best certification body?

Theory: The choise of the client All certification bodies controlled worldwide

Practice: Certification body should have experience in this area (correct assessment of problems) Certification body should have an office directly at location (travel expenses) certification body should recommend a partner or consultant 10 steps to international certificate

• Inquiry to certification body per telefone or email 1

• Sending the certification application form to the client 2

•Based on the filled in application form, the certification body makes an offer to the client 3

•After signing the offer, the certification body registers the client in ISCC and send out the first preparing documents 4 for the audit

•If necessary, PCU offers a pre‐audit. 5 •Also possible to make an consultancy by a third party

• Preparing for the (first) audit 6

• Carrying out the (first) audit = official estimate by one or more inspectors, preparation of audit report. 7

•Analysis of the inspection report = inspection report (made by certification body PCU Deutschland GmbH) 8

• Decision to issue a certificate 9

• Obligatory yearly control‐audit 10 Action PCU Action client Audit duration?

On farm: 1‐3 hours

First gathering point: 3‐6 hours

Duration depends on: ‐ The size / complexity of the structure of the company ‐ The quality of compliance with the requirements ‐ Level of preparation Key‐factors during the audit:

1. Document control procurement documentation, sales documentation location plans, maps of fields certificate (for example, ownership of the property, compliance with laws and regulations, etc.) mass balance greenhouse gas emissions

2. Management processes organigram management System traceability

3. On‐site inspection (walk around the site) field visit (compliance to the fieldmaps evidence, Ecology and Conservation) storage of chemicals for crop protection, fertilizer warehouse (environmental protection) accounting (record‐keeping) What happens in case of non‐conformities? 2 level a) critical non‐conformity / main criteria / screening criteria b) minor non‐conformity / secondary criteria / other criteria

Examples ISCC: ƒ 100% main criteria and minimum 60% secondary criteria should be achieved ƒ In case of noncompliance its the necessary to determine steps to resolve them ‐ verified by the auditor. ƒ 50 days to eliminate the non‐conformity (exceptions may apply) REDcert: ƒ Scoring system: all the screening criteria and minimum 75% of other criteria should be achieved Costs?

1. Costs for the certification program (eg., ISCC) ƒ Registration (one‐time) 50‐500 € ƒ Certificate fee 50‐500 € ƒ Tariffs: 0,03 €/т bioliquids

2. Certification and inspection costs ƒ Inspection 1‐3 hours at 100 €(farmer) ƒ Inspection 1‐3 hours at 100 €(first gathering point) ƒ Certification 800 €

Example: 1 first gathering point with 2 farmers (suppliers): 250 €+ 250 € + 300 €+ 300 € + 800 € = 2 200 € Thank you.

Please ask your questions.

Богдан Силенков [email protected] www.pcu‐deutschland.de