The world’s demand for alternative energy sources rapidly expands by concerns related to global climate change, oil scarcity and energy security. Biofuels production can partly answer this demand. In recent years, global discussions on biofuels production shifted towards environmental and food security impacts. At the same time, private sector companies as well as governments in developing countries recognise the need for alternative energy sources, like biofuels, not only to reduce their dependency on fossil fuels, but also as a new opportunity for economic development, especially in rural areas.

SNV’s biofuel activities aim at improving the conditions of poor smallholders and entrepreneurs through two main approaches: Value Chain Development and promotion of Inclusive Business. In the existing and emerging biofuel value chains, different enterprises aim to collaborate in linking their production and marketing processes in an efficient way. Poor smallholders and entrepreneurs are often absent in this sequence of joined market-focused processes. In our Value Chain Development approach we recognise and seek to incorporate the business values of the poor in biofuel value chains. This inclusion strategy has potential to alleviate poverty, as stronger market positions for the poor lead to increased production, income and employment opportunities.

In creating an enabling environment to seize these business opportunities for the poor, SNV applies the Inclusive Business concept. An Inclusive Business emphasises the engagement of companies in entrepreneurial initiatives that contribute to poverty reduction, without losing the profit objective, through incorporation of lower-income populations in biofuel value chains. The initiatives seek mutual benefit for both the companies and the small-scale producers of feedstock involved, whilst considering sustainability criteria for biofuels production.

The promotion of Inclusive Business models was launched in 2006 through our alliance with the World Business Council for Sustainable Development (WBCSD). Especially in Latin America, SNV built a strong track-record in the application of the Inclusive Business concept. In several initiatives with leading companies in the biofuel sector, SNV is working with feedstock varying from Jatropha and Oil palm to local crops such as the Corozo palm. Furthermore, SNV works with public sector entities in promoting policies, seeking a sustainable and inclusive development of the biofuel sector. In providing an evidence base to influence policies, SNV develops biofuel knowledge channels on national, regional and global levels. Knowledge brokering and networking activities enable our partner’s organisations to access, apply and renew knowledge and it improves the quality of our advisory services.

Learn more about the SNV-WBCSD Alliance for Inclusive Business

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