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Risk management

24 Jan 19
Chris Malins
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The recast Renewable Energy Directive, agreed last year, created a new category of high ILUC-risk biofuels, along with defining a role for certifying low ILUC-risk biofuels. This report, undertaken for Transport and Environment, reviews the links between biofuel feedstocks and conversion of high carbon stock land, and looks at the challenges in certifying feedstocks for avoiding displacement. It finds that both palm oil and soy oil production continue to be associated with significant deforestation, and in the case of palm oil with peat drainage, and recommends that these should be categorised as high ILUC-risk by the European Commission.

Reviewing the status of the low ILUC-risk concept, the report draws attention to the difficulty of measuring the impact of productivity improvement projects and the importance of robust demonstration of project additionality, and proposes a an outline for an effective low ILUC-risk certification.