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  • Carbon Market

Decarbonization needs biofuel and biofuel needs more allies

  • Posted in 06/05/2022

By Erasmo Carlos Battistella, CEO of BSBIOS

I felt a great honor to be able to represent the Brazilian biofuels sector during the High-Level Thematic Debate on Tourism and the Sustainable Development Goals promoted by the World Tourism Organization (UNWTO), on May 4, 2022. Due to my personal trajectory as an entrepreneur with over 20 years of experience and the company I represent in Brazil, BSBIOS, a national leader in biodiesel production, with innovative investments in the area of advanced biofuels in Paraguay and now also in Switzerland, we were able to reinforce the concrete contributions of the sector in relation to the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) and which are also fully linked to the tourism activity.

Opening the event, Abdulla Shahid, President of the 76th Session of the United Nations General Assembly (UN), highlighted the importance of “building a more sustainable, resilient and responsible global tourism sector”. He said: “We should not restart global tourism as usual, we should be more ambitious than that, more responsible than that”. Shahid encouraged Dialogue participants to seize every opportunity to transform the tourism sector and aim for a more sustainable, inclusive and responsible approach. “Now is the time for bold action and all ideas are welcome,” he added.

Tourism as a space to accelerate the transition

According to the sustainable development goal 7 – Clean and sustainable energyAs an energy-intensive sector, tourism can accelerate the shift towards increasing the share of renewable energy in the global energy mix. By promoting investment in clean energy sources, tourism can help reduce greenhouse gases, mitigate climate change and contribute to energy access for all. Biofuels are an immediate and ready-made solution to enable the transition to a clean energy mix.

In the case of Goal 11 – Sustainable Cities and Communities, tourism can advance urban infrastructure and accessibility, promote regeneration and preserve cultural and natural heritage, assets on which tourism depends. Investment in more efficient transport infrastructure, with reduced air pollution, should result in smarter and greener cities, not only for residents but also for tourists. Biofuels are a solution for large cities, in the case of urban and freight transport, without the need for major investments in transitional infrastructure.

For the goal 13 – CLIMATE ACTION, tourism stakeholders must play a leading role in the global response to climate change. By reducing its carbon footprint, in the transport and accommodation sectors, tourism can benefit from low-carbon growth and help address one of the most pressing challenges of our time. Biofuels are an immediate solution to reduce carbon emissions and ensure the preservation of the environmental beauty that motivates tourists to travel.

Six months have passed since the 2021 United Nations Climate Change Conference (COP26) in Glasgow. All of us who were there saw the commitment shown by world leaders to fulfill their commitments to a low-carbon economy. And to achieve this, global mobility, whether by air, sea, rivers, roads or streets, plays a fundamental role.

Today, there is already a fuel capable of enabling the transition to low-emission energy in transportation at low cost. Biofuels fit perfectly into this sense of urgency that we all talk about to achieve decarbonization goals and we are ready and able to reduce emissions in all modes of transportation.

Aircraft around the world are already flying with SPK (Synthetic Paraffinic Kerosine, also known as SAF). The industry aims to meet the requirements of CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) and, to this end, advanced biofuels will play a key role in achieving these GHG (greenhouse gas) reduction targets.

But in addition to SAF, renewable diesel HVO (acronym in English for Hydrotreated Vegetable Oil) is an immediate delivery fuel, which goes straight to the tank. It can be used in a diesel engine of a truck from the 60s and 70s, as well as in the latest generation engines developed in Europe and the United States without the need for adaptations, unlike some other alternatives to the use of petroleum, which require a high investment in the creation of refueling infrastructure and in the purchase of a new truck or bus.

The fact that they directly supply the tank without the need for engine adaptations is an important difference, as it makes the potential market size much larger than that of traditional biodiesel, which is usually used in a mixture with fossil diesel.

The development of the role of biofuels in the international decarbonization process is fully related to the mobilization of governments, international organizations and many sectors that need to accelerate the energy transition in their businesses. 

Conrado Clifford, vice president and deputy director general of the International Air Transport Association (IATA), highlighted this important scenario during the event: “We need sustainable fuels, which are key to decarbonizing our (airline) industry. Our problem is carbon emissions, and the way to decarbonize the aviation sector is to rely on sustainable fuel. At the moment, we only have 120 million liters (of SAF – Sustainable Aviation Fuel) available in the world, but we need 450 billion liters. We have this gap that we need to fill in the next 20 years. Governments will need to encourage the production of these fuels so that they become affordable.”

The governments of Norway and Sweden have enacted legislation to support sustainable biofuels in aviation, while France is discussing a mandate for their introduction in the near future. In the United States and Japan, voluntary adoption is already underway, and major airlines will use biokerosene.

As stated in the “Sustainable Aviation Fuel Policy Toolkit” from Clean Skies for Tomorrow (an initiative of high-ambition companies and organizations working to decarbonize global aviation through sustainable aviation fuels and other next-generation technologies), sufficient supply of advanced biofuels requires production, which requires large investments, which in turn require reliable and lasting regulatory frameworks.

The biofuel industry, specifically, is also a powerhouse for sustainable development and so-called green employment.

In the case of biodiesel, in Brazil, within the context of the National Biofuels Policy (RenovaBio), the sector has already made investments exceeding R$10 billion in the last decade and a half, installing a park with 55 plants, in 14 states, in all regions of the country.

Biodiesel is a vector for increasing the Gross Domestic Product (GDP) and for the internalization of growth with the direct inclusion of almost 300 thousand people linked to family farming. In 2020, according to data from the Ministry of Agriculture, Livestock and Supply (MAPA), more than 74.2 thousand families moved R$5.9 billion with the sale of raw material for biodiesel production.

Production certified by international organizations does not encroach on forests or conservation areas to access raw materials. The mix of inputs also uses waste from other manufacturing sectors, representing a solution to environmental liabilities. 

This is a battle that requires the involvement of governments, international organizations and many sectors that need to accelerate the energy transition in their businesses. Advanced biofuels need allies so that they can deliver their decarbonization solutions on a large scale.

But for this to be possible, we need clear public policies and stable regulatory frameworks to attract new investments committed to producing a fuel that will make the transition possible.

The solution exists – we need to pave the way to get there quickly. With more allies and together, we can transform the world.

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