Renewable Energy for Development

STOCKHOLM ENVIRONMENT INSTITUTE – NEWSLETTER OF THE CLIMATE AND ENERGY PROGRAMME

SEI • May 2008 Vol. 21 No. 1 ISSN 1101-8267 SPECIAL THEME ISSUE: PARTNERSHIPS FOR BIOENERGY IN AFRICA Policies and partnerships for biofuels development in Africa By Maria Milagros Morales, SEI

Globally, biofuels are becoming increasingly important as alternative, renewable sources of energy with the potential to displace polluting and expensive fossil fuels while supporting rural trans- formation in developing countries. Currently, liquid biofuels originating from biomass are the focus of worldwide interest due to concerns about energy security, climate change, and the need to support local agriculture and stimulate trade be- Bioethanol feedstock production tween northern and southern regions and among Biodiesel feedstock southern countries themselves. production

Note: Theoretical demand represents ~10% of 2004 liquid transport fuel consumption to be achieved Feedstock potential by 2015. Brazil demand is 40%. Diamonds represent the ratio between the type of fuel feedstock Theoretical demand n the coming years, as demand from the trans- produced. Feedstock potential represents total land which could be devoted to first generation port sector for fuel grows in the north, interna- feedstocks. Current capacity represents biofuels production capacity in place at year end 2006. Current capacity I tional trade in biofuels such as ethanol and bio- Biofuels Supply and Demand markets (New Energy Finance) diesel, as well as biofuel feedstock is set to increase. Countries in the north are increasingly inter- sector priorities. Moreover, they should ensure that effective ested in investing in biofuel production in the south, with and fair mechanisms are in place to guarantee environmental the result that liquid biofuels are fast transitioning from sustainability. Thus, it may be possible for poorer countries to being a local resource to a valuable global commodity. take advantage of the enormous potential of biofuels for socio- Although the challenges associated with establishing an economic development while reducing the associated risks. international trade regime north-south-south are unques- tionable, the related benefits of international trade are In this issue: manifold. Developing countries will be in a position to diversify their energy matrix, exploit local renewable re- Policies and partnerships for biofuels development in Africa sources, and improve rural livelihoods while earning valu- By Maria Milagros Morales...... 1 able foreign exchange from exports as well as from savings through fuel substitution. Public-private partnership for the use of biomass gasification Until recently, biofuels have not been commercially technology in Uganda viable without significant government support. Thus far, By Sunil Dhingra...... 2 Brazil is the only country with a large biofuels industry that is competitive without any type of subsidies. Policies to A biofuels prenuptial: Questions for policy makers before the support the development of the sector include measures to marriage By Margaret N. Matinga...... 3 stimulate domestic biofuel production through direct government support and import tariffs. Other policies such as Development of Local Biofuel Markets: A Case Study from fuel blending and tax reductions for biofuels directly target Ethiopia the replacement of fossil fuels. By Fiona Lambe...... 4 Trade liberalisation within the biofuels sector would help to increase competition and, consequently, improve Lessons from China: Rural Household Biogas, an Integrated efficiency and decrease production costs. The role of gov- Solution for Sustainable Livelihood Development ernment is crucial to enable favourable conditions for bio- By Lailai Li...... 6 fuels markets to develop, to attract the private sector to invest, and to facilitate public-private-partnerships for local Assessing the African Biofuel Debate: sustainable development. The Need for Sustainable Biofuel Development Strategies Policies must be carefully designed to ensure that the By Bothwell Batidzirai...... 8 domestic supply and international trade in biofuels are harmonised and aligned with other agricultural and energy Announcements...... 8

Renewable Energy for Development, May 2008, Vol. 21, No. 1 1 Public-private partnership for the use of biomass gasification technology in Uganda By Sunil Dhingra, The Energy and Resources Institute (TERI), India

The government of Uganda, under its Energy for Rural Transforma- tion (ERT) programme is working to expand biomass energy use in Uganda through the increased use of biomass based gasification systems. The Ministry for Energy and Mineral Development, together with the World Bank, has partnered with The Energy and Resources Institute (TERI), India to establish several demonstration/pilot projects which are being implemented through public-private partnership.

s in most Sub Saharan Afri- can countries, the develop- Ament of the rural energy sector in Uganda is considered vital for poverty reduction and is thus viewed as a long term policy priority. To this end, the government has ZuzartePhoto: Fiona launched an ambitious scheme to expand rural electrification coverage from the current low rate of 1%, to 10% within 10 years through the Jatropha plantation in semi-Arid region in India increased use of biomass-based gasification systems for electricity gen- gasification for various heat and innovative in that it involves government eration. The initiative is being im- power applications including rural investment in the appropriate technical plemented by The Energy and Re- electrification. Several pilot projects expertise and, crucially, the participation sources Institute (TERI), India, a are underway to demonstrate this en- of local communities. The pilot projects leading international energy and ergy-supply model in a variety of have been setup to meet the demand for environment research organisation settings including universities, where the electricity generated and the feasibility with specialised expertise in the the electricity generated is supplied to of the model. TERI plans to work with introduction and scale up of such the campus buildings. While opera- other counties in the region including systems. tional and technical support costs are Tanzania, Mozambique and Nigeria to supplied by the programme, the sys- replicate the biomass gasification pro- The program aims to demonstrate tem hardware costs are shared with the gramme through the same model of pub- the commercial feasibility of the end users. lic-private cooperation. systems in Uganda by adapting the technology to make use of various This public-private cost sharing For more information, contact local biomass materials and is train- model is important for the future sus- [email protected] ing local engineers to raise aware- tainability of the programme and is ness about the potential of biomass

The Stockholm Environment Institute (SEI) is an is also available through the SEI website. ISSN 1101-8267 international research institute focusing on sustainable The views expressed in the articles in this newsletter are Printed on chlorine-free, 100 % recycled paper development. The Institute works through an interna- those of the authors and not necessarily those of SEI or of tional network of centres, associates, and field staff Sida. around the world. For further information contact Tom Gill, SEI. [email protected] The Climate and Energy Resources Programme is concerned with improving access to environmentally Managing Editor: Fiona Zuzarte Kräftriket 2B friendly energy services, promoting renewable energy Guest Editor: Fiona Lambe SE-106 91 Stockholm, Sweden Tel +46 8 674 7070 and energy efficiency, and advancing global coopera- Publisher: Francis Johnson tion on climate change. Fax +46 8 674 7020 Layout: SEI/Fiona Zuzarte E-mail [email protected] This newsletter is supported by the Swedish Printer: Grafisk Teknik www.sei.se International Development Cooperation Agency (Sida). The newsletter is distributed free of charge and

2 Stockholm Environment Institute A biofuels prenuptial Questions for policy makers before the marriage By Margaret N. Matinga, University of Twente, Netherlands

The current biofuels debate is Firstly, it ignores the fact that often framed between two oppos- in the south, access to clean energy ing views which seem impossible remains extremely low and biofuels to reconcile. For countries in both production for local utilisation can the north and the south, develop- go a long way to meeting this gap. ing coherent biofuels policies will Providing clean energy in the South depend not on persuading one may have broad developmental extreme end to join the other, but benefits beyond GHG emission rather on finding optimal solu- reduction. Indeed one may ask why tions for a complex issue. For the South should produce biofuels

Southern policy makers in par- Photo: flickr.com/Murkas simply to assist the North to meet its ticular, the question that should GHG emissions obligations when be asked is: under what circum- the production and use of biofuels in stances can biofuels be produced the South may not only reduce Farming Soya for optimal sustainable develop- global GHG emissions, but also ment benefits? Addressing this meet standards and are often geo- meet energy needs, improve health issue will help Southern policymak- graphically scattered, requiring more due to clean energy use and protect local ers enter into better partnerships. complex logistical arrangements (e.g. environments. Moreover, the transport of transporting feedstock to a production biofuels from the South to the North has ltimately, the motivation for plant or pooling together liquid biofu- added to the litany of criticism against the south, in particular Af- els made at different satellite depots). biofuels. The localisation of production U rica, to trade in biofuels Without supportive policies, these and use of biofuels can contribute to re- should be based on whether and how smaller farmers seeking partnerships ducing the CO2 emissions from the lifecy- it contributes to sustainable devel- with the north are unlikely to be com- cle of biofuels while yielding local bene- opment as a whole, rather than a petitive against larger, well organized fits in poorer areas. consideration of GHG emission private entities that own substantial Secondly, while transport fuels are reductions. Although exporting bio- land on the continent. Northern and indeed a major drain on national revenues fuels to the North seems particularly Southern policy makers and partners due to importation costs of petroleum attractive, Africa must avoid the all should therefore look for new ways of based transport fuels, there are other needs too familiar trap of biofuels becom- efficiently and sustainably supporting in the South that are equally if not more 1 ing another “extractive ” industry. In these farmers. Fair trade initiatives in important. Bioethanol for use in the current discussions, the focus has the food industry and elsewhere may household sector can improve health, been on Africa as a feedstock pro- provide starting points for such inno- particularly for women and children who ducer and very little debate has cen- vative partnerships in the biofuels are exposed to high levels of indoor air tred on who will produce these bio- sector. pollution from solid fuel use. Biodiesel fuels and how they will be produced. can also power clinics to enable wider, as This risks a return to the age-old Biofuels produced for whom? well as emergency use, of health facilities. pattern of exporting unprocessed and The discussion on benefits for poor Conclusions semi-processed products to the farmers leads directly to the next ques- The debate surrounding biofuels remains north, leaving African farmers with tion which is: for whom should biofu- complex and ill-understood with no clear marginal benefits. Ideally, biofuels els be produced? There seems to be an “yes or no” answer. As with many prod- should benefit poor and small scale assumption (especially in line with the ucts and industries, its impacts can be farmers and their households. For EU biopact) that biofuels should pri- negative or positive depending on how this to occur, the biofuels value marily be produced in the South for they are exploited. For the Southern part- chain must, to a large extent, shift to export to the North, particularly the nerships perspective, the starting point the countries of feedstock origin, so EU. It is also assumed that biofuels should not be GHG reduction targets in that processing is undertaken by should be produced for the transport the North. Rather, it should be maximising small scale farmers therein. sector. These comfortable positions not only raise concerns over scales of sustainable development benefits for the Can biofuels benefit poor farmers? production (and the inherent equity, poor in the South. It is issues such as these The challenge is that these small social and environmental problems of that policy makers both in the South and farmers often lack the capacity to large scale biofuels productions) but North need to address as they enter part- also ignore two important points as far nerships with each other for biofuels de- 1Extractive here is used in a broader sense not as the sustainable development agenda velopment and trade. just of mining but a general extraction of re- of the potential producer countries is sources in form or raw materials and commodi- concerned. For more information, contact ties with little or no processing within the [email protected] continent. Renewable Energy for Development, May 2008, Vol. 21, No. 1 3 Development of Local Biofuel Markets: A Case Study from Ethiopia By Fiona Lambe, Stokes Consulting Group/Gaia Association

African governments play a crucial role in supporting the emergence Box 1: Urban Clean Cooking Initiative: Providing Ethanol Stoves to of local biofuels markets by facili- Condominium Residents in Addis Ababa tating public-private partnership and introducing policies to in- The Municipality of Addis Ababa EPA (Environmental Protection Authority) crease biofuel production. This is and a Sub-City district selected by the EPA is working closely with Gaia Asso- the case in Ethiopia where the ciation, Dometic AB, Makobu Enterprises, and Finchaa Sugar Factory to develop government is currently working a project whereby initially 2000 CleanCook stoves will be installed in newly with the private sector to support built condominium apartments. These apartment units are conceived as private the development of a household developments that are facilitated by government to play a role in the city’s urban market for domestically produced renewal. Wood and charcoal stoves are not permitted in these condominium ethanol. buildings. The CC stove will be financed within the price of the condominium unit; financing will be provided by the condominium association with the assis- ince 2004, Gaia Association, tance and facilitation of the Municipal EPA, the Sub-City Administration and a a local Ethiopian NGO, has financing entity. The finance rate is regulated by the government and is kept S been working to provide low. households in Ethiopia with access Ethanol fuel will be purchased from Finchaa Sugar Company at a contrac- to ethanol, a clean, affordable and tual price by Makobu Enterprises and delivered to the condominium association environmentally sustainable cook- distribution point. The fuel storage and distribution infrastructure will be fi- ing fuel, to replace traditional, un- nanced by the condominium association. The Ethiopian EPA will work with one healthy, and increasingly unafford- Sub-City Administration to package the stove financing into the condominium able solid biomass and kerosene. In financing through the national bank. As a result, a major energy need (cooking) late 2008, the first ethanol fuelled will be acknowledged in urban condominium development and financing. Two cooking stove, the CleanCook (CC) thousand CC stoves will be financed in 2008 and approximately 360,000 liters of stove by Swedish company, state-owned domestically produced alcohol will supplant kerosene, charcoal and Dometic AB, will be commercial- firewood use. The other nine Sub-City administrations could then replicate this ised for the household market in model. Ethiopia in a venture led by Ethio- pian company, Makobu Enterprises Since the CC stove is clean burning, its introduction will improve indoor air PLC. This progress came about as quality and, consequently, household health. Another advantage of this model the result of public-private sector lies in the potential for Clean Development Mechanism (CDM) financing. The partnership in Ethiopia as well as effect of switching from kerosene to ethanol for cooking in households is to re- cooperation at both the international duce both indoor air pollutants and GHGs. Because alcohol is a cleaner fuel and local level. (CO2 emissions) than all other liquid and solid household cooking fuels presently The ethanol utilised for the available in Ethiopia, the ethanol fuel and stove have the potential to qualify for stove project is produced at one of CDM financing three state-owned sugar factories, Finchaa Sugar, from molasses, a by- a dialogue with the most relevant product of sugar cane production. ministries to communicate the Initially, Project Gaia began work in enormous potential of domestically Ethiopia in response to a request produced ethanol in the household made by Finchaa and the Ethiopian market. At the commencement of Sugar Industry for assistance in the pilot project, key contacts were Lambe Photo: Fiona developing a domestic market for its developed at the Ministry for Trade ethanol by introducing alcohol fu- and Industry and the Ministry for elled cooking stoves to Ethiopian Mines and Energy, and efforts were homes. This was at a time when no made to ensure that both Ministries other domestic market was being were well briefed on the progress considered for the product and the and success of the project. export price for ethanol was prohibi- Local manufacture of CC stove parts, In 2006, the government be- Addis Ababa tively low. Thus, from the begin- gan to consider allocating ethanol ning, the government has had a clear for fuel blending in the transport stake in the stove project. Since the sector. Given that ethanol supply sugar industry in Ethiopia is state- will remain constrained until early owned, it was vital that Gaia Asso- 2010, convincing the government to ciation, at an early stage, established prioritise the household sector at the 4 Stockholm Environment Institute early stages was crucial, and was Private Sector Participation confidence are established among all par- achieved through round table discus- Makobu Enterprises, a local company, ties and the lines of communication re- sions with the relevant ministries. will lead the way in scaling up the main strong. Gaia Association has proven Crucially, Gaia Association demon- commercial venture, initially in the that the CC stove is appropriate technol- strated the considerable foreign ex- condominiums, and later, to the ogy for the Ethiopian market and has lob- change savings which would accrue broader private household market in bied the government to ensure a reliable at the national level by replacing Addis Ababa. Currently the CC stoves supply of ethanol is available in the early expensive kerosene imports with are imported from Slovakia where stages of commercialisation. This in turn locally produced ethanol. As a result they are manufactured, but local pro- has built confidence in Makobu Enter- of this policy dialogue, ethanol for duction will soon commence in Addis prises that the risk they are taking in investing in the start-up of the business is low and that there will be a market for their product. Dometic, facilitated by Gaia Association, has developed a strong working relationship with Makobu and has brokered a fair and workable licensing agreement for the local manufacture of their product. Sectors that benefit Although the challenges associated with starting a business in Ethiopia are undeni- able, the potential rewards are great, not just for Dometic and Makobu, but for the households that will benefit from an improved fuel and stove, and for the government of Ethiopia which will save foreign currency by making use of a local renewable resource. The role of government policy has been central for the development of a domestic bioethanol industry in Ethiopia, as well as for building a local market for ethanol as a household cooking fuel. At a time when many Afri-

Photo: Fiona Lambe Photo: Fiona can countries are embarking on large scale biofuel production for the export market, the Ethiopian government has recognised the need to give priority to the domestic Domestic use of clean cook stove, Addis Ababa household sector where locally produced ethanol will bring the most significant the household sector is now consid- Ababa, which will make the technol- socioeconomic and environmental bene- ered a national priority. ogy more affordable to the average fits. Continued cooperation and dialogue Gaia Association has partnered Ethiopian household. Dometic has between the public and private sectors will with the City Government of Addis assisted with Makobu with modifying be essential for the future success of this Ababa to supply stoves and ethanol the stove design to better meet local initiative. Gaia Association and its part- to newly developed urban housing needs and is providing technical guid- ners are working to forge a common ap- projects around the city (See Box 1). ance for developing the local stove proach that will create a locally owned, These developments are part of the production line. A successful venture sustainable business model to provide governments’ initiative to reduce the in Ethiopia will encourage Dometic to affordable and clean household energy to number of slums in the city by mov- initiate a market for the CC stove and millions of Ethiopians. ing families into condominium possibly other Dometic products else- apartments. The use of traditional where in Africa and other emerging biomass is prohibited in these dwell- markets. For more information, contact ings and kerosene is strongly dis- Gaia Association in its capacity [email protected] couraged for safety reasons. Thus, as an NGO is playing a key ‘bridging’ the government acknowledges the role between Makobu, Dometic and need for a local clean cooking alter- the government of Ethiopia to ensure native and recognises the ethanol that the project becomes commercially stove as such. sustainable. It is crucial that trust and

Renewable Energy for Development, May 2008, Vol. 21, No. 1 5 Lessons from China: Rural Household Biogas, an Integrated Solution for Sustainable Livelihoods By Lailai Li, SEI

Food production and energy short- funds, there was often no viable market Integrated Rural Development in ages are among the most serious for their products. Moreover, financial and South Africa challenges facing African farmers technical support for essential water con- In 2002, the district of Sekhukhune, today and should be viewed as in- servation projects was lacking and as a South Africa was selected as a node trinsically linked. Failure in rural result, communal garden schemes and for Integrated Sustainable Rural De- development programs has often agricultural activities had very limited velopment, a policy developed by the been found due to lack of a holistic success. national government to facilitate sus- approach or coordination between The Sekhukhune case raises a number tainable economic growth and address government, local communities and of important issues related to the way in rural unemployment in the area. Key the private sector. The two case which integrated rural development pro- programme areas included employ- studies are reviewed below to first grammes should be implemented. ment generation through training and examine the factors affecting an Clearly, a strategic programme for linking the funding of income generation pro- integrated rural development plan various rural development initiatives and jects to support food production and in South Africa (2007, Ziervogel, ensuring participation of all stakeholders, business development. Despite recog- G., Taylor, A., Thomalla, F., and T. public and private, is needed. Looking to nizing the main causes of poverty and Takama), and then draw on the successful initiatives in other regions can identifying the major areas to be ad- lessons learned implementing a be a useful way of identifying workable dressed, the programme was largely successful rural biogas programme models for adoption in the African con- unsuccessful for a number of reasons. in China (2000, Lailai Li) to ex- text. The approach was generally frag- plore how this model may be ap- mented with little coordination be- plied in the context of African rural tween the government, community Rural Biogas program in China. development programming. and household levels. This in turn led In the early 1980s, a similar pattern of

to inefficient resource allocation and a environmental degradation and extreme ith more than 55% of the divergence in the expectations and poverty to that of Sekhukhune district population considered priorities of the local government and existed in Gongcheng County, southern very poor, an unemploy- W the villagers. The villagers, more con- China. At the time, the local energy struc- ment of 69% and almost 68% of the cerned about income, found it difficult ture was characterised by heavy depend- population without access to educa- to see how they fit into the govern- ence on gathered fuelwood which led to tion, the rural district of Sekhuk- ments’ broader development plans. deforestation and soil erosion. The loss of hune, South Africa is characterised The community viewed the pro- soil severely impacted upon the liveli- by extreme poverty. Variability of gramme as disconnected from their hoods of the local communities which rainfall and high evaporation se- needs and as a result, participation was relied on subsistence farming and fed into verely limits subsistence farming low. the cycle of poverty. and most families live entirely on These problems were confounded In 1985, the county government of government grants. Poverty and by a lack of government support for Gongcheng, China, recognising that environmental degradation reinforce the farmers’ initiatives. Waiting lists household energy shortage is a key factor one another with energy shortages at for project approval were long, and contributing to rural poverty and environ- the household level leading to defor- where businesses did receive seed mental degradation, adopted a series of estation and soil erosion.

Climate Employment change (jobs) Energy shortage Rainfall vairability Income Deforestation Poverty

Water Health environmental degradation Food

Figure 1: Poverty perceived in Sekhukhunes Figure 2 Poverty cycle driven by energy shortage

6 Stockholm Environment Institute ture was involved in from 44% to 80% and the village of introducing improved Gongcheng became energy self sufficient. agricultural and live- The Chinese government, with support stock varieties, while the from international development coopera- Department of Planning tion agencies including UNDP, FAO and facilitated the market the World Bank, has invested heavily in development for the the scheme and the “Gongcheng Model of fruits produced using Ecological Agriculture” has since been biogas wastes. replicated throughout China.

Conclusion To encourage pri- If energy access is the key factor for pov- vate sector participation erty of the communities, then household

Photo: Flickr.com/Nomade Moderne Moderne Flickr.com/Nomade Photo: in the initiative, the energy must be considered central to rural government contracted Biogas use in China development and the holistic approach the Rural Energy Ser- adopted in Gongcheng should be consid- vice Company (RESCo), policies under the county’s 5-year ered by African policy makers when de- a private company specialising in Integrated Social Economic Devel- signing integrated rural development research and development for renew- opment Plan to provide incentives plans. As demonstrated by the involve- able energy technology, to run demon- for household biogas development. ment of RESCo in Gongcheng, the private stration projects and provide training The programme was implemented sector can play a central role in strength- and technical support for the partici- through close coordination between ening livelihoods and enhancing commu- pating villages. RESCo, as an inde- various government departments and nity participation in rural development pendent economic entity, is responsi- benefited from substantial govern- programmes. Coordination between gov- ble for its own profit and loss, but ment investment to subsidise the ernment departments and local stake- enjoys tax reductions for supporting construction of biogas digesters for holders and participation of the communi- the household biogas program. Em- use in household agricultural and ties in planning were obviously lacking ployment was created for farmers who livestock production. with the Sekhukhune district programme, received training and the rural villages In the early stages of the pro- which were affecting the implementation worked closely with RESCo to de- gramme, the county government process and were seen as major reason for velop new techniques for the effective played a leading role strengthening the failure of the initiative. In addition, use of biogas systems. village organisations, training farm- development of local markets to support The role of the communities, re- ers, creating demonstration projects livelihoods was neglected, where the gov- garded as the main implementation and providing technical support and ernment can actually play an important force for the program rather than its financial subsidies. Once the dem- role. The county government of Gong- beneficiaries, was crucial for the im- onstration projects showed their cheng, by focusing on involving the vil- plementation of the project. They are benefits, initiatives to replicate the lage-level beneficiaries and providing fully engaged in every aspect of the successful practices were developed training and technical support, ensured programme, from energy production spontaneously by the villages, facili- local ownership and future sustainability to agricultural development and land tated by the village committees. of the projects. Moreover, by investing in and water resource management. Later on, the government, while research and development, the rural biogas The programme was highly suc- continuing to support the pro- technology was adapted to serve local cessful and in the 10 years following grammes financially, shifted the needs in an effective manner. its launch, local farmers saw their focus of its work to research and annual income increase from RMB development to ensure that the bio- 200 to RMB 3400. Moreover, in this For more information, contact gas system fit the local needs effec- time, fuelwood consumption de- [email protected] tively. The Department of Agricul- creased by 80%, forest cover rose

Box 2: Household Biogas System

Household biogas systems are simple, featuring a biogas Livestock digester connected to livestock barn (or sanitary toilet), Food Sanitary processing Livestock toilets kitchen and agricultural production field. Livestock and wastes organic wastes from agriculture and cooking are main raw Lighting & Biogas Biogas Biogas materials of biogas production. A family of 5 members, heating digester residuals raising 2 pigs and with household waste would generate enough biogas to provide energy for cooking, lighting and Food (fruit/ agricultural/ Water pump vegetable) domestic small food processing. The biogas wastes are good organic production wastes food fertilizers. Farmers can also sell the livestock which thereby supplementing income.

Renewable Energy for Development, May 2008, Vol. 21, No. 1 7 Assessing the African Biofuel Debate The Need for Sustainable Biofuel Development Strategies By Bothwell Batidzirai, Chinhoyi University, Zambia

Access to modern energy services is fuel crops could also result in defores- opment is very context specific and a suc- now widely recognised as being a tation. Concerns that biofuel develop- cessful programme in one area may not be prerequisite for sustainable devel- ment will compromise agricultural replicable elsewhere. It is crucial that opment and essential for addressing production are growing and this is African governments take full advantage the MDGs. compounded by the fact that global of all of the enormous benefits of indige- food stocks are currently dwindling. nous biofuels industries, while taking all owever, for most of Sub Pro-biofuels analysts contend that measures to reduce potential risks. This Saharan Africa, traditional Hbiomass accounts for 50- 90% of national energy supply and as populations grow, fuelwood shortages and environmental degradation are increasingly common. Moreover, since most SSA countries rely on petroleum imports, the rising price of crude oil is having a severe impact on national economies and further reducing household energy access for the poor. The Photo: Fiona Zuzarte recent emergence of biofuels as an Jatropha Seed and plant alternative energy option for the developing countries have nothing to will require carefully thought through region has sparked an intense debate lose from promoting biofuels since programs and effective policies, encom- on the socioeconomic and environ- land, particularly degraded land that passing capacity building and localization mental implications for African can be utilised for fuel crops such as of technology. African countries must economies. sugar cane and jatropha, is in excess examine their national resource structure, While locally produced biofuels supply. In addition, biofuel production particularly in terms of land and water have the potential to enhance energy has the potential to boost rural econo- availability, and technical expertise while security and boost socioeconomic mies by creating employment and a ensuring food security and environmental development for African economies market for agricultural products. Since sustainability are not threatened as a result by reducing dependence on oil im- biofuels are considered carbon neutral, of biofuel development. ports, there are fears that their de- developing countries could take ad- velopment could jeopardise food vantage of carbon finance as well as security, damage biodiversity and international markets for biofuels. For more information, contact destroy rural economies by increas- Although this debate is necessary, [email protected] ing competition for land. It is argued often analysts generalise their conclu- that the demand for land to grow sions, forgetting that bioenergy devel-

Announcements: Recent Events and Publications from Climate and Energy Programme in Stockholm

SEI has participated in the following events: • Washington International Renewable Energy Conference (WIREC), Washington, USA, March 2008. • Commission on Sustainable Development (CSD), New York, USA, May 2008 • World Bioenergy Conference, Jönköping, Sweden, May 2008 More information can be found on the ‘News and Events’ link at www.sei.se The following recent reports are available on the ‘Publications’ link at: www.sei.se • Joint report with UNIDO entitled Industrial Biotechnology and Biomass Utilisation: Prospects and challenges for the developing world (keyword search: ‘Industrial Biotechnology’) • Working Paper entitled Market Barriers to Clean Cooking Fuels in Sub-Saharan Africa: A Review of Literature (keyword search: ‘Household cooking’) A new series of reports have been issued on Bioenergy from Sugarcane in southern Africa and are available at: www.carensa.net

8 Stockholm Environment Institute