A Closer Look: The Diversification of Sustainability Standards
January 13, 2012
Today, more than 30 sustainability standards have applied for EU Commission approval for compliance with the requirements of the Renewable Energy Directive 2009/28/EC (RED). Since July 19, 2011, the EU Commission did approve the following seven sustainability standards: ISCC, Bonsucro EU, RTRS EU, RSB EU, 2BSvs, RBSA (Abengoa) and Greenergy. Due to the approval by the EU Commission these standards have to be recognized in all EU Member States. (http://ec.europa.eu/energy/renewables/biofuels/sustainability_schemes_en.htm).
Currently, most of the EU Member States have implemented the RED in national law, but not all require biofuels approved by at least one of these standards to the fulfilment of their national biofuel blending quotas. For example, in Spain, sustainability certification of biofuels becomes obligatory from January 2013 only.
More than 2,500 companies worldwide did decide to get certified under at least one of the currently approved standards. Most recognized by the industry is the ISCC standard; however, in specific segments and countries some of his competitors start to gain first working experience.
Due to the fact that sustainability certification is required in the largest fuel markets in the EU (e.g. France and Germany) biofuel exporters will have more and more difficulties to sell non-certified biomass & biofuels. More specifically, the huge Biodiesel Exports from Latin America will need to start certifying their supply chain this year. If they miss these needs, then they will start struggling to find buyers this year for their non-certified material and will have nearly little to no market entry in 2013. Why? In 2013, it is expected that all EU Member states will require biofuel to be certified as sustainable.
The current choice between seven approved standards is feasible for most companies still. However if the EU Commission approves more and more standards the chance to maintain the important overview which one to choose will definitively decrease. Until now, the EU Commission did not set any deadline for new applications of standards and the resources currently bound in the approval process would urgently be needed for:
- Harmonizing current activities; and
- Determining solutions to unsolved problems which put an unnecessary additional burden on the industry.
A further potential point of confusion for the industry are standards which are approved as national standard in one EU Member State only and lack the recognition by the EU Commission.
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