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Report on Small-Scale Bioenergy Initiatives in ASEAN +3 Small-Scale Bioenergy Initiatives in ASEAN +3 Small-Scale Bioenergy Initiatives in ASEAN +3 Food and Agriculture Organization of the United Nations Regional Office for Asia and the Pacific Bangkok, 2014 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. © FAO, 2014 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected]. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. For copies of the publication, write to: Patrick B. Durst Senior Forestry Officer FAO Regional Office for Asia and the Pacific 39 Phra Atit Road Bangkok 10200 Thailand Tel: (+66 2) 697 4139 Fax: (+66 2) 697 4445 E-mail: [email protected] Printed and published in Bangkok, Thailand Foreword As the price of fossil fuels continues to rise and resources become increasingly scarce, the need for more environmentally sustainable energy sources continues to grow. Continued research and development into alternative renewable energy technologies – particularly in bioenergy – has seen the number of small-scale projects increase substantially. This expansion is both a challenge and an opportunity for countries and regions considering bioenergy development. On the one hand, bioenergy production utilizes many of the same resources, both natural and human, that currently support food production systems. Competition for resources such as land, water and labour could lead to increased prices in food, putting more pressure on those closest to the poverty line. Large-scale expansion could also lead to disparities in feedstock production and quality, for both food and bioenergy utilization. Additionally, climate change could place added strain on the existing natural resource base, affecting both food and bioenergy systems. However, some bioenergy technologies and projects have been able to promote economic development in rural areas without negatively affecting food security. These projects not only improve livelihoods, but can enhance energy security and promote better health and nutrition. In addition, the by-products of bioenergy production (such as bioslurry and biochar) can help reduce reliance on costly chemical inputs and improve soil biomass production. The FAO Regional Office for Asia and the Pacific is committed to helping the region identify and strengthen efforts to balance the trade-offs associated with bioenergy development. To this effect, FAO has worked closely with Practical Action Consulting (PAC) to commission a follow-up study on Small Scale Bioenergy Initiatives in ASEAN +3. This report re-examines cases initially identified in a joint FAO/DFID PISCES publication from 2008, as well as identifying a number of new cases in the ASEAN +3 region. The analysis highlights not only the successful elements of each initiative, but also identifies barriers and bottlenecks in each part of the market system and recommends interventions to address these barriers and allow sustainable bioenergy initiatives to be scaled up and replicated throughout the ASEAN +3 region. The report examines the sustainable market development, value chains, livelihood benefits and food security issues to identify what has made them successful or unsuccessful. The aim is to use this knowledge to better support bioenergy market systems and bioenergy development throughout the ASEAN +3 region in order to enhance food and energy security, rural development and the environment. Hiroyuki Konuma FAO Assistant Director-General and Regional Representative for Asia and the Pacific iii Contents Foreword ................................................................................................................................................. ii Acknowledgements ................................................................................................................................. v Abbreviations and acronyms ................................................................................................................. vi Small-Scale Bioenergy Initiatives in ASEAN +3 ......................................................................................... i Executive Summary ................................................................................................................................. x 1 Introduction .................................................................................................................................... 1 2 Small-scale bioenergy initiatives in ASEAN +3 ................................................................................ 3 2.1 The ASEAN +3 context............................................................................................................. 3 2.2 Lessons from small-scale bioenergy Initiatives in the ASEAN +3 ............................................ 4 3 Analytical framework ...................................................................................................................... 6 3.1 Study methodology ................................................................................................................. 6 4 Identification of ASEAN +3 bioenergy initiatives .......................................................................... 10 4.1 Overview of case studies ...................................................................................................... 10 5 Bioenergy market mapping ........................................................................................................... 17 5.1 The market chain .................................................................................................................. 18 5.1.1 Market chain analysis of ASEAN +3 bioenergy case studies ......................................... 19 5.1.2 Barriers, opportunities and intervention at the market chain level ............................. 22 5.2 Mapping the inputs, services and finance ............................................................................ 24 5.2.1 Barriers, opportunities and interventions .................................................................... 26 5.3 Mapping the enabling environment ..................................................................................... 27 6 Outcomes for sustainable livelihoods ........................................................................................... 32 6.1 Land use ................................................................................................................................ 32 6. 2 Land tenure rights ................................................................................................................. 33 6.3 Food prices ............................................................................................................................ 34 6.4 Changes in income ................................................................................................................ 35 6.5 Jobs and labour conditions ................................................................................................... 35 6.6 Energy access ........................................................................................................................ 36 6.7 Food security ......................................................................................................................... 37 7 Conclusions ................................................................................................................................... 40 7.1 Lessons from small-scale bioenergy initiatives in ASEAN +3 ................................................ 40 7.2 Final recommendations for further work ............................................................................. 43 7.3 Final recommendations for ASEAN +3 .................................................................................. 44 7.4 ASEAN BEFS Regional Framework ......................................................................................... 46 v Annexes – Case studies ......................................................................................................................... 54 Indonesia (Case 1): Lombok energy initiative ..................................................................................
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