UN panel rejects jatropha oil biofuels project in CDM

Hello again,

today I'd like to forward an article about agrofuels (aka biofuels, which I consider a total misnomer, especially in German-speaking countries where the prefix "bio-" evokes associations with organically produced food):


09.10.07 UN panel rejects jatropha oil biofuels project in CDM

[CDM = clean development mechanism]

A UN panel of experts that decides whether greenhouse gas reduction methodologies can earn carbon credits has recommended the rejection of a project type which could dramatically cut greenhouse gas emissions in developing countries.
The Methodology Panel, a consulting group to the clean development mechanism (CDM) executive board, recommended the board reject carbon finance for a plan to create biodiesel from crude palm oil and jatropha oil.
"I couldn't tell you why our methodology was rejected. I am still waiting for the official response," said Bhaskar Chalasani, author of the project design document and managing director of Naturol Bio-Energy Ltd.
The methodology (NM0224) assumes that the biodiesel generated from these types of projects will replace dirtier liquid fossil fuel, such as gasoline and diesel, which would otherwise be used in combustion engines. The result would be a reduction in emissions of greenhouse gases such as carbon dioxide and nitrous oxide. According to the World Resource Institute, transport emissions accounted for 14 per cent of global output in 2000, and with a number of countries setting long-term emission reduction targets, many countries, including the EU 27 bloc, are establishing targets for biofuel use. However, carbon finance to fund biofuels production remains close to non-existent.
The CDM executive board has so far approved just one methodology, rejecting several others on the grounds that projects could cause deforestation and create a situation where emission reductions are counted twice.
Deforestation and double counting
Biofuels come from crops that are often cultivated on land which otherwise could be used for forestry or agriculture, particularly in the case of palm oil in Indonesia and Malaysia. Consequently many biofuel-based CDM projects fail because they can be responsible indirectly or directly for emissions resulting from deforestation.
Yet, creating biofuel from jatropha seed oil can avoid this pitfall, because the jatropha bush can grow on barren land that cannot be used for forestry or agriculture and is not susceptible to pests or drought.
One problem that project developers face when attempting to get carbon credits for any biofuel production is the issue of double counting. This involves the seller receiving carbon credits for producing biofuel and the consumer reducing their emissions, and in some cases being awarded carbon credits, for consuming it.
But while the EB is likely to follow the Meth Panel's recommendation to reject the plan when they meet on 15-19 October, project developers see biofuels as a solution to many environmentally-related problems, such as generating sustainable development investment in regions largely untouched by the CDM, namely Africa.
"The perennial problem with Africa and the CDM is that number one, there is no investment, and number two, there are no emissions. But the one place there is emissions in Africa is in the transport sector," said Justin Guest, an investment advisor to carbon fund Trading Emissions plc. "There are legitimate issues with biofuels and the CDM and yes there are problems, but we need to apply some thought to this and not just wring our hands. Places like Laos, Nepal and Bhutan all have terrible problems with their transport emissions. In fact in some areas of Brazil it takes 3 litres of diesel to deliver one litre, but if you can grow it right next to you ... these are the type of things that biofuels can help with," Guest said.
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