Bioenergy for the Energy Transition: Ensuring Sustainability and Overcoming Barriers

By International Renewable Energy Agency IRENA

This report provides an overview of the challenges and related policy measures required to scale up the deployment of key bioenergy applications.

• Language: English
• Publisher: IRENA
• Release date: Aug 1, 2022
• ISBN: 9789292605049

Book preview

© IRENA 2022

Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printed and/or stored, provided that appropriate acknowledgement is given of IRENA as the source and copyright holder. Material in this publication that is attributed to third parties may be subject to separate terms of use and restrictions, and appropriate permissions from these third parties may need to be secured before any use of such material.

ISBN: 978-92-9260-451-6

eBook ISBN: 978-92-9260-504-9

Citation: IRENA (2022), Bioenergy for the energy transition: Ensuring sustainability and overcoming barriers, International Renewable Energy Agency, Abu Dhabi.

ABOUT IRENA

The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future and serves as the principal platform for international co-operation, a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewable energy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity. www.irena.org

ACKNOWLEDGEMENTS

This report was developed under the guidance of Rabia Ferroukhi (Director, IRENA Knowledge, Policy and Finance Centre) and Ute Collier, and authored by Jinlei Feng (IRENA), Adam Brown (consultant) and Chun Sheng Goh (consultant), with valuable contributions from Diala Hawila, Emanuele Bianco, Abdullah Abou Ali and Hanbit Lee (IRENA).

Valuable external review was provided by Ivan Vera (United Nations Department of Economic and Social Affairs), Toshimasa Masuyama (Ministry of Agriculture, Forestry and Fisheries, Japan), Maria Michela Morese, Constance Miller (Food and Agriculture Organization), Arthur Wellinger (European Biogas Association), Bharadwaj Kummamuru (World Bioenergy Association), Phosiso Sola (World Agroforestry), Daniela Thrän (German Biomass Research Centre), Jack Saddler (University of British Columbia), Julia Tomei (University College London), Suani Coelho (University of São Paulo), Gabriel Blanco, Daniela Keesler (National University of Central Buenos Aires) and Angel Alvarez Alberdi (European Waste-based & Advanced Biofuels Association).

The authors would like to thank Dean Cooper (WWF), Stephan Singer (Climate Action Network International) and Craig Hanson (World Resources Institute) for valuable inputs on the sustainability discussions.

Valuable review and feedback were provided by IRENA colleagues Adrian Whiteman, Arvydas Lebedys, Badariah Yosiyana, Paul Durrant, Paul Komor and Seungwoo Kang.

For further information or to provide feedback: [e-mail].

Available for download: www.irena.org/publications.

DISCLAIMER

This publication and the material herein are provided as is. All reasonable precautions have been taken by IRENA to verify the reliability of the material in this publication. However, neither IRENA nor any of its officials, agents, data or other third-party content providers provides a warranty of any kind, either expressed or implied, and they accept no responsibility or liability for any consequence of use of the publication or material herein.

The information contained herein does not necessarily represent the views of all Members of IRENA. The mention of specific companies or certain projects or products does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not mentioned. The designations employed and the presentation of material herein do not imply the expression of any opinion on the part of IRENA concerning the legal status of any region, country, territory, city or area or of its authorities, or concerning the delimitation of frontiers or boundaries.

CONTENTS

EXECUTIVE SUMMARY

INTRODUCTION

1. BIOENERGY IN THE ENERGY TRANSITION

1.1. Current deployment status and share in the energy mix

1.2. The role of bioenergy in the energy transition

2. SUSTAINABILITY OF BIOENERGY

2.1. Reducing GHG emissions

2.2. Protecting the environment

2.3. Increasing socio-economic benefits

2.4. Placing sustainability of bioenergy in contexts

3. INTERNATIONAL BIOENERGY TRADE

3.1. Overview of global trade of liquid biofuels

3.2. Overview of global trade of solid biofuel

4. POLICY FRAMEWORK FOR SUSTAINABLE BIOENERGY DEVELOPMENT

4.1 Sustainability-based target setting and long-term planning

4.2. Cross-sectoral co-ordination for bioenergy

4.3. Sustainability governance supported by regulations, certificates and partnerships

4.4. Bioenergy and the SDGs

5. SELECTED CASE STUDIES ON SOUTHEAST ASIA

5.1. Sustainability challenges of bioenergy in Southeast Asia

5.2. Governing sustainability of bioenergy supply chains

5.3. Case studies in Indonesia, Malaysia and Viet Nam

5.4. Lessons learnt and experiences

6. BIOENERGY CROSS-CUTTING BARRIERS AND POLICIES

6.1. Barriers to the deployment of bioenergy

6.2. Cross-cutting policies to address common barriers in all uses

7. SUSTAINABLE BIOMASS FOR CLEAN COOKING

7.1. Background

7.2. Opportunities

7.3. Barriers to deployment

7.4. Policies and measures

8. MODERN BIOENERGY FOR HEAT IN BUILDINGS

8.1. Background

8.2. Opportunities

8.3. Barriers to deployment

8.4. Policies and measures

9. SUSTAINABLE BIOENERGY FOR ELECTRICITY PRODUCTION

9.1. Background

9.2. Opportunities

9.3. Barriers to deployment

9.4. Policies and measures

10. BIOMASS FOR INDUSTRY

10.1. Background

10.2. Opportunities

10.3. Barriers to deployment

10.4. Policies and measures

11. BIOENERGY FOR TRANSPORT

11.1. Background

11.2. Opportunities

11.3. Barriers to deployment

11.4. Policies and measures

CONCLUSION

GLOSSARY

REFERENCES

FIGURES

FIGURE S1. Potential aspects related to bioenergy sustainability

FIGURE S2. A policy framework for sustainable bioenergy development

FIGURE S3. Cross-cutting barriers to bioenergy deployment

FIGURE 1.1. Share of bioenergy and other renewables in global total final energy consumption, 2019

FIGURE 1.2. Share of global bioenergy consumption by end use, 2020

FIGURE 1.3. Modern bioenergy consumption in 2019 and 2050 in IRENA’s 1.5°C Scenario, by sector

FIGURE 1.4. Primary bioenergy supply in (left) and 2050 (right) in the 1.5°C Scenario

FIGURE 2.1. Potential aspects related to bioenergy sustainability

FIGURE 2.2. Numbers of bioenergy jobs and share in total renewable energy jobs, 2012-2019

FIGURE 3.1. Global bioenergy trade in major markets in 2020

FIGURE 3.2. Estimated export volumes of biodiesel from major producers, 2016-2020

FIGURE 3.3. Top ten export markets for US bioethanol, 2016-2020

FIGURE 3.4. Estimated export volumes of wood pellets and other solid biofuels from major producers in 2016-2020

FIGURE 4.1. A policy framework for sustainable bioenergy development

FIGURE 4.2. Government departments’ involvement in bioenergy production and consumption

FIGURE 5.1. An overview of land use in some Southeast Asia countries

FIGURE 5.2. Changes in forested areas in Viet Nam, 1990-2020

FIGURE 6.1. Cross-cutting barriers to bioenergy deployment

FIGURE 7.1. Global clean cooking access rates from 2001 to 2020 and forecasted for 2030

FIGURE 8.1. Major pathways for modern bioenergy use in buildings

FIGURE 8.2. Biogas and biomethane production cost (left) and average prices of natural gas, electricity and fuel oil for residential consumers in OECD countries (right)

FIGURE 9.1. Share of bioenergy in electricity generation by feedstock, 2020

FIGURE 9.2. Conditions that bioenergy power generation projects need to meet to ensure prioritised use of limited biomass feedstock

FIGURE 9.3. Share of different CCS options in total carbon removal needs in the 1.5°C Scenario

FIGURE 10.1. Potential opportunities of bioenergy for industrial decarbonisation

FIGURE 11.1. Total energy demand in transport, by fuel, 2020

FIGURE 11.2. Overall policy framework for deployment of renewables in transport

BOXES

BOX 1.1. Limitations in data reporting and definition of traditional biomass

BOX 1.2. Estimation of biomass supply potentials

BOX 2.1. BECCS

BOX 3.1. International liquid biofuel trade and sustainability

BOX 4.1. Bioenergy within the EU Renewable Energy Directive to 2030 (RED II)

BOX 7.1. Bioenergy and clean cooking in sub-Saharan Africa

BOX 7.2. Development of small-scale biogas digesters in India, Viet Nam and Africa

BOX 7.3. Biogas to provide clean cooking and heating for 160 rural households in Feidong County, China

BOX 7.4. Clean cooking framework to empower women

BOX 7.5. International donor and development funding for clean cooking

BOX 8.1. Waste to energy: Utilising solid urban waste and manure to produce biogas

BOX 9.1. Major co-firing technologies

BOX 9.2. BECCS technology options

BOX 11.1. Targets on biofuels for shipping and aviation in the European Union’s Fit for 55 package

BOX 11.2. Biofuel blending mandates in Brazil

BOX 11.3. The US Renewable Fuel Standard

BOX 11.4. The Low Carbon Fuel Standard of California

TABLES

TABLE 4.1. Certification schemes for bioenergy

TABLE 4.2. Maximising synergies between bioenergy and the SDGs

TABLE 6.1. Cross-cutting policies and the targeted barriers

TABLE 7.1. Barriers and policies for bioenergy in clean cooking

TABLE 8.1. Barriers and policies for bioenergy heat in buildings

TABLE 9.1. Barriers and policies for bioenergy in power generation

TABLE 10.1. Barriers and policies for biomass use in industry

TABLE 11.1. Barriers and policies for bioenergy in transport

ABBREVIATIONS

BECCS bioenergy with carbon capture and storage

CAD Canadian dollar

CCS carbon capture and storage

CCU carbon capture and utilisation

CHP combined heat and power

CNY Chinese yuan renminbi

CO2 carbon dioxide

COP26 26th United Nations Climate Change Conference of the Parties

ECOWAS Economic Community of West Africa States

EFB empty fruit bunch

EJ exajoule

ETS emission trading system

EU European Union

EU-RED European Union Renewable Energy Directive

EUR euro

FAME fatty acid methyl esters

FAO Food and Agriculture Organization

FFV flex-fuel vehicles

FIT feed-in-tariff

FSC Forest Stewardship Council

GBEP Global Bioenergy Partnership

GBP United Kingdom pound

GDP gross domestic product

GGL Green Gold Label

GHG greenhouse gas

GJ gigajoule

GtCO2 gigatonne of carbon dioxide

GW gigawatt

ha hectare

HEFA hydroprocessed esters of fatty acids

HVO hydrogenated vegetable oil

ICRW International Center for Research on Women

IEA International Energy Agency

ILUC indirect land-use change

IMF International Monetary Fund

IRENA International Renewable Energy Agency

ISCC International Sustainability & Carbon Certification

ISPO Indonesian Sustainable Palm Oil

KWh kilowatt-hour

LCFS Low Carbon Fuel Standard

LPG liquified petroleum gas

MSPO Malaysian Sustainable Palm Oil

MSW municipal solid waste

Mt megatonne

MtCO2 million tonne of carbon dioxide

MW megawatt

NDC Nationally Determined Contribution

NEDO New Energy and Industrial Technology Development Organization (Japan)

OECD Organisation for Economic Co-operation and Development

PEFC Programme for the Endorsement of Forest Certification

PKS palm kernel shell

PM particulate matter

POME palm oil mill effluents

PV photovoltaic

RBF results-based financing

RD&D research, development and demonstration

RED II Renewable Energy Directive recast

RFS Renewable Fuel Standard

RNG renewable natural gas

RSB Roundtable on Sustainable Biomaterials

RSPO Roundtable on Sustainable Palm Oil

SDG Sustainable Development Goal

SFM sustainable forest management

SOx sulphur oxide

UCO used cooking oil

UN United Nations

US United States

USD United States dollar

USDA United States Department of Agriculture

VAT value-added tax

VFDS Viet Nam Forestry Development Strategy

EXECUTIVE SUMMARY

Bioenergy currently contributes the largest share (two-thirds) of renewables utilisation worldwide, when including the traditional use of biomass. A growth in production and use of modern bioenergy will be critical for the global energy transition with low-carbon to net zero emissions scenarios. According to the International Renewable Energy Agency’s (IRENA’s) 1.5°C Scenario, bioenergy production would need to increase significantly by 2050 to achieve the 1.5°C climate goal. Without the deployment of sustainable biomass for different purposes, achieving this goal may be challenging.

The current deployment of bioenergy remains well below what is needed to achieve the energy transition, even though many technologies are available, and the modern use of biomass and liquid biofuels has been growing significantly in some regions. At the same time, billions of people still rely on the traditional and inefficient use of biomass for cooking and heating, affecting health and gender inequity, while leading to deforestation in many areas and adding to climate change. Modern bioenergy will need to increase significantly in all end uses. Accelerating progress will depend on tackling the traditional biomass use problem by facilitating a shift to alternative sustainable fuels, as well as developing more ambitious policy portfolios for modern biomass use, supported by investments.

Realising bioenergy’s role in the energy transition will be a major challenge. For policy makers, bioenergy is a complex area, involving a much wider range of stakeholders and issues than most other forms of renewable energy. It interacts with many other sectors, such as agriculture, forestry, environmental protection and waste management, and can have positive or potentially negative impacts if the supply chain is not managed properly. The potential sustainability risks of the bioenergy supply chain and its deployment are linked to land use, air pollution, water and soil quality, biodiversity, competition with food supply, and effects on indigenous communities and smallholders (see Figure S1).

International trade of bioenergy has further increased the complexity of sustainability governance. Wood pellets, biodiesel and bioethanol are major commodities produced by countries in North and South America and Asia, while European countries are main destinations for most of these commodities to support their decarbonisation ambitions. Many drivers along the bioenergy trade have triggered the adoption of certifications and regulations and a wide range of stakeholders to address the sustainability issues.

Ensuring the sustainability of bioenergy along the supply chain, including most notably biomass feedstocks, is the most fundamental element of bioenergy policy making. The aim of this study is to assist policy makers in this complex area. While no one solution fits all, policies and measures should be contextualised and based on engagement with various stakeholders. The policy framework for sustainable bioenergy should consist of sustainability-based target setting and long-term planning, co-ordinated planning across departments, regulations, certification schemes and partnerships. Moreover, the Sustainable Development Goals (SDGs) can also be used to help bioenergy policy making (see Figure S2).