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Leakage, spatial and temporalBiofuel rating system may be prematurePosted by biodiversivist (Guest Contributor) at 10:33 AM on 30 Apr 2007I received an email yesterday from Richard Plevin over at Berkeley: I can only conclude from your post on Grist that you didn't actually read our report. The implications that we are either unaware of the environmental issues surrounding biofuels, or that we dismiss them, are incorrect. Your post does a disservice to those reading it by suggesting this. Likewise, I could conclude that he didn't read my post since he missed the gist, which was that all His conclusion that my "post does a disservice to those reading it by suggesting this" is moot because it rests on the following strawman arguments: "...we are either unaware of the environmental issues surrounding biofuels, or that we dismiss them ..." However, he was right about me not reading the report. I was inferring what was in it. So I took up his offer to critique it and read all 71 pages. I hope this critique adds value to the agrofuel debate. It turned out to be pretty much what I assumed -- a biofuel mimic of existing schemes like USDA Organic, LEED, Forest Stewardship, the EPA green vehicle guide, and shade grown coffee certification. For example, the following is a borrowed idea that has landed 0.1 percent of the coffee market for Fair Trade products in the United States: Using a green biofuels index in one of the implementations identified above would allow producers to differentiate their products and command higher prices by using environmentally superior practices. All the above programs combined have barely made a measurable dent in the unsustainable juggernaut consuming the planet's biodiversity and resources. People are going to use wood to build their homes and grow crops to eat, but do we really need to add to the planet's burden by demanding that it grow fuel for our cars? Do we really "need" biofuels yet, if ever? The existing Prius fleet saves more gas annually than all the ethanol produced in America (2001 data). The first calls for moratoriums and bans are just starting to be heard. We need more research, not government funded industrialization and ratings systems for environmentally destructive fuels. They are on the right track here: ... without appropriate information, incentives, and rules, the biofuels industry is likely to expand production in environmentally harmful ways. [From my perspective, this is a gross understatement. At present the industry is an environmental disaster that is expanding like a star gone nova]. Coincidentally, they discuss at the end of the report what I would call the fatal flaw of all agrofuels: "leakage." Some of us would not have read any further if it were at the beginning (the old counting angels on the head of a pin problem). I'll just hand this over to the authors and hope they are wearing bulletproof shoes: Leakage occurs when emissions increase in unregulated areas that counteract reductions in a regulated area. For example, under a regime that prohibits biofuels production on deforested land, producers could convert cropland to palm plantations while clearing rainforest to provide more cropland. Bauen, Howes, et al. (2005) recommend disallowing biofuels produced on recently cleared land from a regulated trading regime. However, this is not guaranteed to prevent leakage, as land is fairly fungible: Lands cleared more recently than, say, 10 years ago might be used for export markets where no restrictions apply, while land cleared more than 10 years ago would be used for regulated markets. Note that this can be a problem for domestically produced as well as imported biofuels, most notably if Conservation Reserve Program (CRP) or other grasslands are converted to row crops such as corn and soybeans. Eventually, like everyone else, they make the standard plea for government subsidization via one of its many and varied forms (see Note 1). Insisting that the government pick economic and environmental winners for us is a bad idea. Ag and biofuel subsidies aside, the hybrid car subsidies given out by our bumbling government were, as is typical, not only wholly unnecessary but counterproductive, providing fuel for anti-hybrid rhetoric. The report also has some interesting inconsistencies. For example, they tell us: ... Other biofuels (such as biodiesel) are important, but we have chosen to focus on ethanol ... Only current biofuel feedstocks and conversion pathways are discussed in this section. Having said that, they then went on to mention biodiesel over twenty times (excluding footnotes) and devised a rating system that includes futuristic rather than "current biofuel feedstocks and conversion pathways." By acknowledging that "it is unclear which will succeed," they also inadvertently acknowledge that none of the cellulosic conversion technologies may succeed. "[C]urrent biofuel feedstocks and conversion pathways" means only those technologies that are presently being used to commercially mass-produce fuel in an economically competitive manner, not economically unproven technologies like bio-butanol, biomass-based Fischer-Tropsch diesel, algae based biodiesel and cellulosic ethanol. However, later in the report you find that the only "fuel conversion pathways" that would receive a gold rating per their scheme are futuristic, economically unproven technologies: cellulosic ethanol using switchgrass, wood, and agricultural wastes (see Note 2). They have leaped into the future and wrapped a whole green rating scheme around something that does not exist yet, analogous to giving hydrogen fuel cells the gold sticker for being the best way to power electric cars. In addition, it has been pointed out many times on this blog and elsewhere that humanity already burned up its forests once and had to switch to coal. Using forests to make liquid fuels would be a very inefficient use of that wood's stored energy. It would be far more efficient to displace coal by burning the wood directly (not to say I am promoting that) to generate electric power (URGE2). The paper sure isn't another Origin of Species. They pretty much borrow from every idea floating around out there: Trading, a potentially important element of a green biofuels policy, introduces important flexibility into the market. Trading improves economic efficiency by allowing firms with poor performing assets (such as older, inefficient processing facilities) to compete in the biofuel market by purchasing credits from very green facilities, rather than face closure or very high retrofitting costs. The green facilities, of course, would see an additional revenue stream and might have sufficient incentive to improve their performance even more. If you suspect that a rating system might be an expensive, complex, ineffective bureaucratic nightmare of entanglement, I'm with you. See Note 3 (bring some toothpicks for your eyelids). Cheers. ----- Note 1: ... governments could require that heir agencies (and possibly their contractors) purchase only biofuels with a minimum green index rating. As purchase is a binary action (buy or don't buy), any index used for this option must be one-dimensional in the end. Note 2: On the other hand, biofuels production can also have positive impacts on the environment. Converting row crops to perennial crops such as switchgrass, for example, reduces erosion, water consumption and chemical use while significantly increasing soil carbon. Note 3:
The cost of measuring and verifying environmental performance will increase the cost of production, and uncertainties about the potential for higher prices for green biofuels can create fundamental impediments to participation by farmers, processors, and biofuel producers that would undermine the entire market, leading to potentially unacceptable market volatility and extreme peak prices. Thus, it is crucial to any measurement and verification process not only that cost and regulatory burden be reasonable, but also that the process be, and be seen as, feasible ...
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