Beleidsnotitie milieu en hernieu by jianglifang


									 Policy memorandum on the environment and
 renewable energy in development cooperation

                                    Appendix 1
                            Biomass for energy purposes
                           Action Plan for Global Biomass
                                             3 July 2008

This action plan is based on the policies and the efforts of the Dutch Ministry of Economic
Affairs [EZ], the Ministry of Agriculture, Nature and Food Quality [LNV], the Ministry of
Housing, Spatial Planning and the environment [VROM] and the Ministry of Foreign Affairs. It
outlines the framework employed by the Dutch government with regard to international
cooperation in the field of the use of biomass for energy purposes. The policy framework will be
reviewed once per year. The action plan aims to make the Dutch effort coherent and effective.

 1. Policy context

 The attention for biomass for energy purposes, specifically „modern‟ forms of bio-energy, has
 increased explosively in recent years. Traditional forms have been the source of major
 supply of energy for a large proportion of the global population for a long time. The
 interest in biomass in recent years has been generated by the necessity of reducing the
 emission of greenhouse gasses. High oil prices and the demand for energy security also play
 an increasingly large role. For developing countries, the greater demand for biomass provides
 opportunities for rural economic development and export.

 Biomass is used for many purposes (e.g. food, cattle feed, building materials) and is the basis
 for the production of industrial raw materials (see also the broad government vision on the
 “bio-based economy”). This action plan is concerned with biomass for energy purposes (the
 transport and generating of electricity), but interaction (additional or competitive use) with
 other purposes will always play a role. This action plan for Global Biomass must be viewed
 within the international context of the Dutch energy and sustainability policy.

 Related to the above, the EU and the Netherlands have decided to stimulate the use of
 biomass by means of a blending obligation (5.75% in 2010, 10% in 2020). This has created a
 large demand. It is to be expected that ultimately, the biomass required can partly be
 produced cost-effectively in the EU. Apart from the bio-ethanol production in Brazil, most of
 the production of biofuels is not yet profitable. Policies and subsidies are currently
 stimulating the development of biofuels. Biofuels on the basis of residual flows will take on
 increasing importance in the coming years.

The government has set clear goals in the area of international sustainability; the costs and the
benefits for people, planet and profit are weighed up against each other. Our responsibility with
regard to climate issues and the interests of our own energy security must not lead to us passing
on the costs to other countries and the environment. The Netherlands has therefore developed
Testing framework for sustainable biomass (letter from Minister Cramer to the Dutch
Parliament, 29 June 2007).

The main lines of the policies for sustainable biomass have been laid down in the Dutch
position on the proposal of the commission concerning the promotion of the use of renewable
energy. The Netherlands aims to achieve the sustainable production of renewable energy as
cost-effectively as possible, among other things by dismantling existing trade barriers. The
biomass required for that production will be grown both within and outside the EU. It is
therefore important that the production is made sustainable by means of sustainability criteria
and monitoring and reports on the consequences of biomass production. The effects concerned
can manifest both directly and indirectly and moreover at different scale levels.

On 23 January 2008, the EU presented a proposal for a guideline mentioning sustainability
requirements. Once adopted, these will be the conditions that will be employed by member
states. Voluntary agreements and subsidy regulations can naturally be more ambitious. The
Netherlands aims to have the guideline include social (poverty) and economic (division of
wealth) aspects of sustainability. The sustainability criteria proposed are:
1. A reduction of Greenhouse gas by at least 35% with regard to fossil fuels;
2. No production on land with a high biodiversity value (among other things
forest, protected natural areas and grassland) and;
3. No conversion of land with a high CO2 content (such as in forests and on peaty soils).

Sustainability is particularly a responsibility of the enterprises that market and use biomass
and biofuels. The government will establish the terms and supervise their observance. The
social debate and public opinion are essential in relation to the observance of agreements.

Three groups of countries can be distinguished:
1. Developing producing countries, some of which already produce biomass on a large scale
   (e.g. palm oil in Indonesia) and countries wishing to enter the new market (e.g.
   Mozambique). These countries are looking both at the local energy supply and export
   possibilities. Cooperation with them is oriented towards the development and trying out
   of a testing framework for the sustainable production of biomass. The support of policy
   development, setting up trial projects and capacity-building are therefore the most
   important components in this bilateral cooperation.

2. With regard to producing countries potentially important to the Netherlands (such as
   Malaysia, Brazil and Indonesia), the emphasis is on cooperation aimed at the promotion
   of the export of sustainable biomass to the Netherlands and Europe. Entering into trade
   agreements and agreements on sustainability (and certification for example) with them is
   the top priority.

3. Other large players in the global market, such as China, India, Japan and the United States
   are large producers and/or consumers with a substantial international influence on policy
   developments and on the market for biomass and biofuels. In order to promote the
   sustainability of this market and international agreements, cooperation with them is of
   great importance.

It is evident that biomass can act as an important link in the energy policies of many
countries. The Netherlands and the EU have set high goals in this regard. The use of biomass
for energy purposes is an important part of the new climate policies1. Biomass for energy
embraces both the production of electricity (among other things by means of the burning of
biomass in generating stations) and the addition of biofuels to petrol and diesel fuel. This is
where the energy issue, economic development in developing countries and the climate debate
converge, making it a complex and highly dynamic policy area. Our responsibility for the
climate issue and our own energy security must not lead to us passing on the costs to other
countries or the environment. Due to the great increase in attention focussed on these
matters in the political and the public arena, careful operating, monitoring and if necessary,
policy adjustments are required.

2. Goal and strategy
The goal of this action plan is to stimulate, support and facilitate the promotion of
the sustainable production of biomass for energy purposes, as far as possible
internationally anchored, on the basis of a „level playing field‟ and to make good
use of the opportunities presented to developing countries. The implementation
hereof will contribute to certified biomass for energy purposes entering the
Dutch market and supporting developing countries in using opportunities and
preventing the possible negative effects of these new developments.

In order to reach this goal, we will work along three lines:
    2.1. International anchoring
The markets for energy and biomass are international. Ultimately, agreements will therefore
also have to be made at this level. The Netherlands wishes to play a leading role hereby, thus
contributing to the creation of as much broad-based support as possible for sustainable
production and consumption. The agreements made should preferably link up with existing
frameworks relating to sustainability and/or trade. The Netherlands will have to realize its
policy on the promotion of the sustainability of the energy supply, obligations with regard to
the reduction of emissions of greenhouse gasses, agreements in environmental treaties and the
achievement of sustainable development (including the MDGs) in a coherent manner.
    2.2. Macro-monitoring
The production of biomass has an effect on land use (which products, where and by whom),
access to means of production (land, water, credit, technology) and price development (with
regard to the various possibilities of using biomass; and therefore on the political question
“food, feed or fuel” as well). These sorts of macro-effects can directly and indirectly
contribute to tension and conflicts, lead to a loss of biodiversity and/or an increase of poverty.
These effects must therefore be carefully monitored. Macro-monitoring makes it possible to bring
the implications of the policies into vision and from here, to identify sustainable options. It is
therefore crucial in relation to the sustainability of biofuels.

The support of the development and the testing of systems for the monitoring of the social,
economic and environmental effects at macro level (above the corporate level) aims to provide
insight into the effects of (the expansion of) biomass production, to place these within a
broader context to enable them to lead to an adjustment of the policies at a macro, meso and
micro level. It is self-evident that this is a national and an international question.
    Energy saving and – efficiency will however remain crucial hereby

     2.3. The promotion of the sustainability of the production
Stimulating the sustainable production of biomass and biofuels by the (further) development
and application of testing frameworks for sustainable production and certification. Via pilots, a
number of developing countries will be supported in the development of their biofuel
policies, the development of testing frameworks for sustainability and mechanisms for
achieving certification. These pilots will contribute to internationally accepted agreements
(2.1). The promotion of the sustainability of the production of biofuel is one of the
sustainability themes selected by the government. The theme „Biofuels in development‟
clearly states that sustainable biofuels must be made available cost-effectively and that
developing countries must be able to profit. We moreover consider it important that we do
not only work to establish sustainability criteria but also enter into a dialogue with
developing countries and offer them support in shaping these criteria. Ultimately, this will
benefit sustainability more, while closing the market on the basis of criteria does not. After
all, outside the Netherlands and the EU, there is sufficient demand which is not subject to
sustainability requirements.

3. Implementation
It is to be expected that in the future, a large part of the demand for biomass/bio-energy will
be produced outside the EU, both in temperate zones and in the tropics. The Netherlands
wishes to cooperate with a number of other countries, particularly developing countries, to
promote the sustainability of the production. Depending on the country and the product
concerned, the cooperation will have to be shaped, while the responsibilities and input of the
departments concerned will differ. Cooperation will take place with a number of
developing countries. This will focus on policy development, capacity building, the
development of national sustainability testing frameworks (possibly on a regional basis), the
development of the monitoring of macro-effects and the certification of the production.
Cooperation will also take place with other (non-developing) producing countries.

The action plan links up to other initiatives in the area of sustainability that are already
receiving support and which will possibly be intensified: sustainability covenants, the
„Schokland agreements‟, the Round Tables for palm oil and soy, bilateral programmes, FSC
and FLEGT.

    3.1. International anchoring
International anchoring is required to realize agreements on the sustainability of biofuels at
different levels and the creation of a „level playing field‟ and a broad basis for support. As
part of the EU, the Netherlands is involved in the development of international agreements
(guidelines with regard to the sustainability criteria of biomass). The Netherlands will focus
on the development of broad-based international sustainability testing frameworks and/or
agreements on the sustainability of the production of biomass for energy purposes, for
example by putting these issues on the agenda of the WTO. This event will naturally take
place in conjunction with many other actors and will be coordinated with other EU member

The government is currently drawing up an inventory of the international forums that are
relevant for sustainability diplomacy and which department represents the Netherlands
therein as well as the nature of the action to be taken and the focus of the Netherlands. The
contribution of the Netherlands in these forums will be coordinated and feedback will be
given on the results of the action taken, in order for the state of affairs and the course of
the process on the various fronts to be known to all those involved at all times. The

interconnectedness will improve and strengthen the efforts made.

Bilateral contacts will make a further contribution to the promotion of the international
debate and agreements on sustainability and sustainability criteria, whereby cooperation
with like-minded parties will strengthen the Dutch position (e.g. the United Kingdom, the
European commission and Germany).

The pilots and activity as set out in section 3.3 should lead to applicable criteria for
sustainable production and an internationally accepted meta-standard. One option is a CEN or
ISO standard in the area of sustainability that a certificate can be awarded for, initiatives can
be credited to and that can be used to verify private labels/certificates in terms of reliability.
This will also curb any undesirable proliferation of labels for different biomass flows. Talks
must be held with NEN, CEN and ISO with a view to exploring possibilities and efforts. In
terms of the international harmonisation of voluntary standards, ISEAL may be a significant

         3.1.1. EU
An EU ad-hoc working group is currently considering a number of the sustainability
criteria proposed that may in the future be made applicable both to the guideline on fuel
quality and the new guideline on renewable energy. The most important elements of the
proposal are a minimal CO2 reduction of 35%, criteria for the protection of biodiversity and
criteria for the protection of carbon stores. With regards to sustainability aspects, in Europe,
the Netherlands is focussed on reaching the “Cramer level”, as laid down in the “Testing
framework for sustainable biomass” report. This means that in the vision of the
government, all six sustainability aspects included in the Testing framework should be
dealt with, also within a European framework. Attention should also be paid to so-called
indirect effects (specifically food supply and biodiversity). The Netherlands is of the
opinion that with regard to sustainability aspects, in addition to the criteria for the CO222
performance, the preservation of biodiversity and the preservation of carbon stores on and
in the soil, as well as the local environmental quality and social aspects such as welfare and
prosperity should be dealt with. With regard to the CO2 performance that according to the
commission‟s proposal must be at least 35% better than that of fossil fuels, the Netherlands
is aiming for 50%. In any case, the Netherlands sets great store by adherence to
progressing standards, meaning an increase of the CO2 criterion in the future. With regard
to biodiversity demands, the Netherlands attaches a great deal of value to a specification of
the chairmanship‟s proposal. The Netherlands has a preference for being a party to
international conventions such as the Convention on Biodiversity and the Ramsar
Convention on „wetlands‟. In the field of biomass and fuel, the Netherlands will moreover
press for the cost-effective availability of biofuels among other things by dismantling
existing trade barriers such as import tariffs. The Netherlands is of the opinion that the
issue of sustainability should thereby be raised. Attention must also be given to making
the second generation of biofuels commercially available and the sustainable production of
these fuels. The Netherlands is of the opinion that in fleshing out local environmental
aspects and social aspects, „WTO conformity‟ must be taken into account. This must
therefore be further assessed. The Netherlands supports the chairmanship‟s proposal where
this provides an incentive to develop international sustainability standards and certification
procedures parallel to European certification.

The debate on sustainability criteria cannot be considered separately from the goal set by the
European Council in 2007. Among other things in view of the recent research reports and
publications on the sustainability of current biofuels, in line with its governmental policy, the
Netherlands will bring forward the necessity of a step-by-step approach whereby the
sustainability and cost-effectiveness of a biofuel obligation must be guaranteed at all times, as
laid down in the conclusions of the European Council in the spring of 2007. This means that
in the event of insufficient compliance with sustainability and cost-effectiveness requirements
in a European framework, the set of instruments employed and at worst the quantitative
goals will have to be questioned. The Netherlands moreover requires a report on the local
social and environmental aspects issued by the companies concerned.

The European Commission has indicated that it intends to enter into bilateral consortiums
with producing countries. At the present, it is not yet clear in which way the commission
intends to further develop such cooperation. When this becomes clear, we will have to see the
degree to which synergy can be created with Dutch bilateral activity. At present, the
Netherlands is in the lead within the EU.

        3.1.2. WTO and other forums
The Netherlands aspires to dismantle the trade barriers to trade biofuel. At the same time, one
of the greatest challenges is to make the „sustainability of production‟ criterion a subject of
debate in the WTO. This will require a great deal of patience; attempts to subject methods of
production to sustainability requirements come up against the WTO provision on the non-
discrimination of comparable products and debates on linking up non-trade concerns and
trade. The possibilities offered within the framework of the WTO to compromise with non-
trade concerns are being further explored. The studies of Van den Bosche et al and Doorne et
al show that there is a „grey‟ area in which it is not clear in advance what is possible and
what not within the framework of the WTO. In spring 2008, the government will take a
position on the non-trade concerns. In addition, within the framework of the EU, the
Netherlands will urge the European Commission to make a case for agreements on the
promotion of the sustainability of the production of biomass for energy purposes within the
framework of the WTO, for example by setting up a separate working group. Such a
working group could discuss the production of biomass as part of the NTCs.

Sustainability will also require constant attention in other international negotiations/
consultations. The developments within CITES make it clear that consistent attention for
sustainability in international trade can be effective. Possibilities may also exist in other
specific forums. Examples are the ILO (specific labour standards), CBD (biodiversity), ITTO
(tropical wood and non-wood products) and the Kyoto protocol (climate). It is thereby
important to operate very specifically in forums such as the EU, the UN Commission on
Sustainable Development, Convention on Biodiversity, OESO, FAO, UNCTAD, the World
Bank, the UNEP and the IEA. These are also forums in which the development and the use
of the monitoring system for macro-impacts must be put on the agenda (see also 3.2).

Especially in the short-term, multi-stakeholder consultations provide opportunities for
concrete progress. For this reason, cooperation with and in the following forums will take
place: the Round Table on Sustainable Biofuels, that various stakeholders are participating
in, the Round Table on Sustainable Palm Oil (RSPO) the RTRS (Round Table on
Responsible Soy) and the G8 Global Bio-Energy Partnership (GBEP), that is working on
sustainability criteria for crops that can also be used as biofuel. Making use of these forums
is also in compliance with the line set out in the sustainability framework of the Dutch

        3.1.3. CDM and JI
One of the goals of CDM is that in addition to reducing greenhouse gas emissions, projects
contribute to the sustainable development of the guest country. In connection with CDM,
biomass projects are supported in various developing countries. In addition, there are a
number of biomass projects in the pipeline, among other countries in Mozambique. For
CDM, a number of relevant decisions have been taken within the framework of the UN (a
definition of renewable biomass, guidelines for monitoring, including guidelines on „carbon
leakage‟ and displacement effects with regard to land use). The possibility of using CDM
projects as trial projects and/or experiences with existing projects is currently being
examined, as well as whether the above-mentioned definitions and guidelines can be used in
relation to this action plan.

In connection with the Joint Implementation (JI), the reductions of emissions are
purchased from biomass projects in central and Eastern Europe. Contrary to CDM, JI
projects do not have to comply with the condition that they must contribute to
sustainable development in the guest country. The possibility of using JI projects as trial
projects and the way in which the experiences of existing projects can be used in
connection with this action plan are currently being examined.

    3.2. Macro-monitoring
The production of biomass for energy purposes will influence land and water use and the
price of biomass (and thereby also the price of food and cattle feed for example). In the
government‟s legislation and regulations, in the first instance, sustainability is the
responsibility of the producer. A number of effects will however particularly manifest at a
higher level; these are moreover not issues only coming to the fore in connection with the
production of biomass for energy purposes. The Cramer Commission mentions change in
ground and food prices, land ownership, the availability of food, change with regard to
access to land, water and credit, change of vegetation and change to the biodiversity. The
nature of the social-economic and environmental effects is extremely complex and it is
therefore difficult to obtain a univocal and balanced picture. Careful planning and stringent
monitoring of the effects is consequently required. The draft guideline of the European
Commission presents a clear framework to this end (a step by step approach). The
monitoring of the macro-effects of the developing biomass flows must contribute to further
policy development, stimulate specific research and will be of influence on the (political)
support for biofuels.

Within the framework of the EU, the Netherlands is currently involved in an initiative that
stimulates the development and implementation of a global monitoring system, in cooperation
with the relevant international organisations. In addition, cooperation between the European
Commission, member states, relevant UN organisations, NGOs, the scientific community and
the business community is desirable. The Netherlands will thereby contribute knowledge and
experience in this area, as stated in the exploratory memorandum on its position with
regard to the European policy on the use of biofuels.
In order to develop a system to map these different effects, the MNP has been asked to draw
up an inventory of what information is available where and where important information is
lacking. Current statistics, database, regional import/export balances, satellite data etc will be
hereby examined. Moreover, in cooperation with the NIVR, the extent to which radar satellite
monitoring can play a role in macro-monitoring will be studied. Among other things, the
outcome will be incorporated in the MNP report that will be rounded off in the coming

The ultimate goal is the realization of a global system in which different macro-effects can
be analyzed in an integrated manner. Which parties will be able to take what responsibilities
herein is not yet apparent. Together with others, the Netherlands can play an initiating and
supportive role. Developing countries can obtain support in building up their own capacity
for this purpose.

The effects of the production of biomass are receiving increasing national and international
attention in the media, the scientific community, politics and policy. The ultimate goal is the
realization of a global system in which different macro-effects can be analyzed in an
integrated manner. The Netherlands will take the following steps:
     together with partner countries, it will focus on the monitoring of macro-effects (among
        other countries in Indonesia and Mozambique)
     within an EU and a multilateral framework, it will focus on an initiative that will
        stimulate the development and implementation of a global monitoring system.
        Cooperation will take place with the European Commission, member states,
        relevant UN organisations and producing countries.
     involve NGOs, the scientific community and the business community aiming at (a)
        broad-based support for a system, and (b) a well-balanced discussion on the macro-

    3.3. Promotion of the sustainability of the production
Pilots are needed to gain experience and to fuel the debate and the negotiations based on
the actual situation in the field. The pilots at a bilateral level fuel the policy development
and agreements at an international level. The production of biofuels (certainly the first
generation) is based on agrarian production and thereby also linked to questions of
productivity, water efficiency, infrastructure, institutional capacity, technological
developments and chain development. These aspects of the promotion of sustainability are not
explicitly dealt with here.

        3.3.1. Developing producing countries
The upcoming biomass market is offering developing countries opportunities for economic
development and consequently poverty reduction. The incomes of the producers of biomass
will rise and national energy security can grow. Increasing independence with regard to
(expensive) oil imports and new opportunities for economic development are presenting
themselves, also for the bulk of the poor living in rural areas. There are however also risks
involved in the (large-scale) production of biomass for energy. Pressure may grow with
regard to natural resources (ground, water, nutrients) as well as a demand for labour, capital
and technology. Land rights of the local (indigenous) population may be placed under extra
pressure, local food security can be threatened and/or vulnerable biodiversity may disappear.
The rising demand (particularly also due to the economic growth of China and India) will
cause the global market price for many agricultural products to rise (OECD-FAO
Agricultural Outlook 2007-2016). The Millennium Ecosystem Assessment (2005) and the
Second Sustainability exploration of the MNP (Netherlands Environmental Assessment
Agency) clearly indicate that striving to achieve the MDGs generally goes along with
adverse affects on biodiversity and ecosystems and increased CO2 emissions. In order to
make use of the opportunities and as far as possible to prevent risks from materializing,
developing countries need our support. The goal of the cooperation with developing
countries is to support them in defining sustainability in their own context, with regard to the
sustainable production of biomass for energy purposes so that this will contribute towards
poverty reduction and providing input for international policy developments.

The concrete stimulation of sustainable production will take place in various ways. The
support in developing countries is largely aimed at policy development with regard to
sustainable production and capacity building. The implementation of pilots for developing
and testing frameworks and sustainability criteria in developing countries in practice, in
cooperation with the business community, will produce information for the country-
specific and area-specific context and the crop concerned. The aggregated information will
contribute to the improvement of regional and international sustainability frameworks and the
creation of a meta-standard, stimulating the (voluntary) use of the latter in practice by means
of systems of certification. The pilots will furthermore indicate a direction for possible
Dutch cooperation in the long term.

A selection has been made of countries on the basis of current ongoing activity in
connection with biomass. Talks are being held with Indonesia and Mozambique as partner
countries where the production of biomass for energy purposes offers possibilities for export
to the Netherlands. Tanzania and South Africa have indicated that they are highly interested
in cooperating with the Netherlands in order to explore and test the possibilities for the
production of sustainable biomass. In relation to bilateral cooperation in among other
countries Colombia, Ethiopia, Mali, Argentina and Vietnam, ideas concerning initiatives to
support the promotion of the production of sustainable biofuel are currently being considered.
Brazil and Malaysia are investing in the production of energy crops in Africa themselves and
besides export to the EU/The Netherlands, are interested in South-South cooperation.

The cooperation with other producing countries (e.g. Brazil) is aimed at the exchange of
information for the promotion of the sustainable production of bio-energy, among other
things via an international standard and the transfer of technology to developing countries.

       3.3.2. Certification
The certification of sustainable biomass is an important way of stimulating sustainable
production as it provides reliable and verifiable information on the origin and method of
production of biomass flows on the basis of which consumers can make their own choices.
The certification of sustainable biomass also gives businesses the opportunity to take their
own responsibility from the point of view of socially-responsible entrepreneurship and
provides companies with the opportunity to distinguish themselves from their competition.
With regard to certification, there are two main points: the certification of production units in
producing countries and the setting up of sustainable chains from producers to consumers.

Within this context, projects are started to support developing countries in fleshing out and
testing sustainability criteria for different crops (such as sugar cane, oil palm, Jatropha,
sugar-palm, second generation) in various countries, and to support small-scale producers
in certifying their biomass for energy purposes. It may be possible to link up to CDM
projects in the field of the use of biomass for energy purposes.

As far as possible, existing forums and ‟round tables‟ aimed at sustainable production and
trade are used, including an analysis of the usability of the experiences with FLEGT (EU-
programme Forest Law Enforcement, Governance and Trade), RSPO, FSC and cooperation
with the UN (e.g. FAO and UNEP).

In addition to providing support to developing countries in further developing and testing
systems of certification for sustainable production, it is also important that the chain between
the producer and the consumer is made sustainable. This will have advantages for
developing countries as it will mean the emergence of new markets for sustainably produced
biomass. For consumers (EU countries for example), this offers a possibility of using
demonstrably sustainable biomass as a renewable energy source.

Certification is the most important tool used to demonstrate that requirements have been
complied with. The Netherlands is attempting to stimulate this by the voluntary
implementation of sustainability certification by enterprises. In addition, the Netherlands is
striving for the establishment of an international standard for sustainable biomass
production. For this purpose, a European standardisation procedure has been started with the
CEN (European standardisation institute). If there is sufficient interest, this can also be lifted to
a global ISO level.

        3.3.3. Cooperation with the business community and the community-based
In order to achieve the global production of sustainable biomass, the active involvement of
enterprises and social organisations is an essential condition. Dutch companies, NGOs and
research institutes are involved as well as companies and institutes in the producing countries
themselves. The public sector can help in supporting a stable investment climate, particularly
in/ from the Netherlands, while on an international and a bilateral level, it can stimulate and
support agreements on sustainable production. Enterprises have the investment capacity,
knowledge and access to markets required to enable them to play an important supportive
role in the first steps in the promotion of sustainability and thereafter large-scale
distribution on the market. NGOs play an important role by bringing the purpose of
promoting the sustainability of production to the attention of the stakeholders, as well as in
aiding the acceptance of previously developed standards by the general public. Finally,
research institutes provide knowledge that can be used for certification and the setting up of
pilot projects.

The business community can make use of a broad-based package of governmental schemes
and programmes in order to contribute to the promotion of sustainability of (international)
production abroad and distribution chains (such as PSOM, PESP and specific facilities for
sector/land combinations). In addition, the government is organising trade and investment-
promoting missions, High Level Meetings and bilateral ministerial visits, stimulating
cooperation between market parties.

In the field of the promotion of the sustainable production of biomass for energy purposes, the
government has taken an initiative by realizing the Schokland agreement „Certification of
biomass for energy purposes‟. In further developing this agreement, the Netherlands is
cooperating with BIOPEC, a consortium currently numbering over forty companies, NGOs

and research institutes. This consortium aims to develop several sustainable biomass
production chains with the Cramer Testing framework as point of departure, so that
sustainable biomass can also be used in the Netherlands for energy applications. The
cooperation was officially launched in June last year with the signing of the Schokland
agreement „Promotion of sustainability biomass for energy purposes‟ by Minister Koenders
and Minister Cramer as well as members of BIOPEC. The goal of this agreement is to set
up a system of certification and the building up of experience with sustainable biomass
production in the medium term. It was agreed that the parties will make both resources and
capacity available with a view to implementing the agreement. In October last year, the
government made 137,000 Euro available for setting up an integrated BIOPEC programme.
The cooperation with enterprises and institutes in the producing countries will be further
elaborated by various missions planned, as well as via the embassies.

Furthermore, together with SenterNovem, the government started the development of a
financing regulation for the implementation of the strategy plan. The financing regulation will
be set up with two goals: a) The support of a number of developing countries in their
development of the sustainable production of biomass for energy purposes, both for their own
use and for export purposes and b) Contributing to and introducing certified biomass for
energy purposes to the Dutch market. The outline of the regulation is currently being further
developed and derived from this action plan and bilateral agreements with (developing)
producing countries. Coordination will thereby take place with the innovation agenda, in
particular the theme „green raw materials, under which funds will be released for sustainable
biomass among other things for energy purposes in non-ODA countries. The regulation will
be open to (members of) the BIOPEC consortium as well as other social partners and
companies with innovative, integrated ideas, whereby investments will also be made by the
organisations themselves. The scheme is expected to be operational after the summer.
Projects will also be supported via embassies in the priority countries as mentioned in this
action plan.

The role of the Netherlands as a knot for the transport of raw materials should not be
overlooked. Rotterdam aspires to be an important player in the transit and processing of
biomass for energy applications.

        3.3.4. Large players
Together with the US, Brazil is the largest producing country of biomass for energy generating
purposes (bio-ethanol), and currently the sole country which in view of its production will
soon be able to export ethanol to the Netherlands/EU. However, the strength of the rising
demand for ethanol still forms a challenge for the industry in Brazil. It has been established
that Brazil‟s current port facilities and infrastructure are inadequate for the purpose of realizing
the planned increase in the export of ethanol. Substantial investments have to be made among
other places in the ports, the infrastructure, storage capacity and transfer capacity, inland
navigation etc. to lift the Brazilian export capacity to another level, areas in which cooperation
may be fruitful.

An integrated approach to Brazil will give the Netherlands the possibility to play the role it
wants in the international debate on the promotion of the sustainability of the production of
biomass and the applicability of sustainability criteria to the production of biofuels. The
government is currently taking initiatives to realize public-private cooperation with a view
to achieving goals concerning the production of sustainable energy and facilitating the
interests of the Dutch business community.

In April for example, a business community mission was made to Brazil that focussed on
strengthening the Dutch position as logistics centre (port facilities), support of the building up
of the required infrastructure in Brazil and cooperation with regard to the sustainability
aspects of biofuels. A Memorandum of Understanding was also signed with Brazil in April.

Together with Indonesia, Malaysia is also one of the large players, thanks to the substantial
production of palm oil. The Netherlands is currently cooperating with Malaysia and Indonesia
within the WSSD partnership Market access for Palm oil. In December 2007, agreements were
made with Malaysia on the cooperation between The Netherlands and Malaysia in the area of
promoting the sustainable production of palm oil. It has been agreed that the Netherlands
and Malaysia will set up an investigation into the CO2 emissions of palm oil cultivation on peat
soils. Together with Indonesia, Minister Koenders and Minister Cramer moreover
elaborated a Letter of Intent that was signed with the Indonesian ministers of Agriculture
and the Environment and en marge of the climate top in Bali in December 2007. Among
other things, this LoI is aimed at cooperation with and support of the promotion of sustainable
production of palm oil, the protection of peat forests and the setting up of macro-monitoring.

The cooperation with the US will be shaped by establishing public-private networks and
continuous policy dialogue between both countries. In addition to large multinationals,
particularly medium and small scale enterprises play a role with regard to the further
development and the renewal of the innovation policy of which the promotion of sustainable
production and distribution chains is a part.

Efforts made with regard to China so far have mainly been aimed at improving
governmental relations and the positioning of the Netherlands‟ business community in
China. The bilateral contacts and the EU-China relationship are thereby of great importance.
For its introduction on the Chinese market, among other things, the business community
can make use of the Asia facility, PSOM, various demonstration projects and a network of
economic and agrarian support points spread throughout the country. Establishing sustainable
production systems among other things for biomass will play an increasingly important role.
This is also expressed in the MJSP China.


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