Publications

This publication compares the biofuels legislation in Latin America. It focuses on:

• Definition of biofuels;
• Authorities for the application of the laws;
• Duties of the enforcement authority;
• Blending of biofuels with fossil fuels;
• Procedure for mixing and distribution;
• Promotional arrangements and tax benefits;
• Promoting the use of biofuels;
• Priority sectors and approach;
• Environmental sustainability;
• Offences and penalties.

The report ends with clear conclusions.

During a national workshop in Peru, on the 15th of February 2012 respectively, preliminary results were presented of a feasibility study conducted for a national biodigester programme in this country. Significant lessons were learned evaluating former projects, for example, the absence of a market-based approach and the lack of follow-up in general (e.g. capacity building, technical assistance, monitoring, evaluation and R&D), confirming the importance of a comprehensive approach in formulating and rolling out a national biodigester programme.

Participants of the workshop include representatives from government bodies, private sector companies, financial institutions, universities, research institutes, NGOs and international cooperation. They extensively discussed the findings of the feasibility studies, agreeing on the main conclusions and demonstrating that sufficient institutional capacity is present to develop a national biodigester programme in Peru.

To adopt a sustainable market-based approach, it was concluded that crucial support functions need to be developed. Capacity building, technical assistance, quality control and research and development were all identified, among others, as necessary programme functions, while the importance of standardised, validated technologies was stressed. At the same time, the overall low investment capacity and/or access to credit facilities for rural households in Peru is limited, particularly in the Andean region. This calls for area specific intervention strategies with differentiated subsidy levels in order to reduce investment barriers and promote the application of renewable energy.

Este informe presenta los resultados de un estudio de factibilidad para un Programa Nacional de Biodigestores familiares en Perú. Los biodigestores a nivel doméstico buscan la introducción del uso de biogás en zonas rurales, como una fuente alternativa y limpia para la cocción de alimentos en reemplazo de la leña, mientras que el sub producto del biol sirve para incrementar la productividad para así aumentar los ingresos de pequeños agricultores rurales. Con el lanzamiento de un Programa Nacional de Biodigestores, construyéndose a partir de las experiencias ya presentes en el país, se busca alcanzar la escala necesaria y el desarrollo de un sector con un enfoque basado en el mercado, asegurando la sostenibilidad del mismo. Este estudio se ha llevado a cabo a petición de Hivos y fue ejecutado por SNV en alianza con Soluciones Prácticas.

Powered by an act to promote biofuels markets and regulation from 2009, biodiesel is gaining strength and interest from several national and international companies, also in the area of San Martin. The San Martín region has high potential and availability of already deforested land for the production of Jatropha. This is confirmed by the information presented in the Economic Ecological Zoning of San Martin, but more detailed information is needed on areas suitable for crop production and interesting producers to be incorporated into Jatropha value chains; given the condition of having a secure market for their production. In this sense, SNV decided to implement a pre-feasibility study for the production of Jatropha with small farmers in the region of San Martin,
for commercial production of biodiesel and with a focus on Inclusive Business.

This study was conducted in collaboration with the Regional Government of San Martin, private companies and local partners such as INIA, represented in the Technical Committee on Biofuels, a public-private partnership that promotes and guides the development of the sector in the framework of PROBIOSAM. It is expected that this publication contributes to sustainable and competitive development of the Jatropha value chain and production target in the San Martín region, in order promote local economic development with social inclusion.

El presente estudio analiza el impacto ambiental de la producción de biocombustibles a partir de la siembra de cultivos energéticos en la Selva peruana, para contribuir a la generación de prácticas y políticas que contribuyan al desarrollo sostenible del sector. El estudio se concentra en la producción de biodiesel a partir de Palma aceitera y de Jatropha, cultivos con mayor potencial para biodiesel y con varios proyectos en marcha en la Amazonía peruana.

Peru possesses a large potential for biofuel production. In that context, the Peruvian government approved the Law for the Promotion of Biofuel Markets and subsequent regulations, with mandatory blending of biodiesel and ethanol. Given the proposed change in the Peruvian energy matrix, SNV together with the World Wildlife Fund (WWF) implemented a project to analyse the socioeconomic and environmental risks and benefits caused by the production of biofuels and energy crops in (agricultural areas within) the Peruvian Amazon.

In the environmental impact study, a Life Cycle Assessment (LCA) for biofuel production was conducted. The LCA considered energy efficiency and Green House Gas (GHG) reduction besides other environmental aspects such as soil use and degradation and use of fertiliser and pesticides. The scenarios that proved to have a positive environmental impact in the agricultural stage are cultivation of Oil palm and Jatropha on already deforested lands with scarce vegetation. Production of biodiesel from Oil palm and Jatropha causing large scale deforestation (and therefore significant GHG emissions) was confirmed to be environmentally unsustainable.

These results were discussed with relevant stakeholders and presented at several events at local, national and international level. Hence, the results contribute to policy making and improved practices for a sustainable and inclusive development of the biofuels sector.

Peru possesses a large potential for biofuel production. In that context, the Peruvian government approved the Law for the Promotion of Biofuel Markets and subsequent regulations, with mandatory blending of biodiesel and ethanol. Given the proposed change in the Peruvian energy matrix, SNV together with the World Wildlife Fund (WWF) implemented a project to analyse the socioeconomic and environmental risks and benefits caused by the production of biofuels and energy crops in (agricultural areas within) the Peruvian Amazon.

In the environmental impact study, a Life Cycle Assessment (LCA) for biofuel production was conducted. The LCA considered energy efficiency and Green House Gas (GHG) reduction besides other environmental aspects such as soil use and degradation and use of fertiliser and pesticides. The scenarios that proved to have a positive environmental impact in the agricultural stage are cultivation of Oil palm and Jatropha on already deforested lands with scarce vegetation. Production of biodiesel from Oil palm and Jatropha causing large scale deforestation (and therefore significant GHG emissions) was confirmed to be environmentally unsustainable.

These results were discussed with relevant stakeholders and presented at several events at local, national and international level. Hence, the results contribute to policy making and improved practices for a sustainable and inclusive development of the biofuels sector.

Peru possesses a large potential for biofuel production. In that context, the Peruvian government approved the Law for the Promotion of Biofuel Markets and subsequent regulations, with mandatory blending of biodiesel and ethanol. Given the proposed change in the Peruvian energy matrix, SNV together with the World Wildlife Fund (WWF) implemented a project to analyse the socioeconomic and environmental risks and benefits caused by the production of biofuels and energy crops in (agricultural areas within) the Peruvian Amazon.

In the environmental impact study, a Life Cycle Assessment (LCA) for biofuel production was conducted. The LCA considered energy efficiency and Green House Gas (GHG) reduction besides other environmental aspects such as soil use and degradation and use of fertiliser and pesticides. The scenarios that proved to have a positive environmental impact in the agricultural stage are cultivation of Oil palm and Jatropha on already deforested lands with scarce vegetation. Production of biodiesel from Oil palm and Jatropha causing large scale deforestation (and therefore significant GHG emissions) was confirmed to be environmentally unsustainable.

These results were discussed with relevant stakeholders and presented at several events at local, national and international level. Hence, the results contribute to policy making and improved practices for a sustainable and inclusive development of the biofuels sector.

El presente estudio analiza los impactos socio-económicos de la producción de biocombustibles a partir de la siembra de cultivos energéticos en la Selva peruana, para contribuir a la generación de prácticas y políticas que contribuyen al desarrollo sostenible del sector . El estudio se concentra en el análisis de tres escenarios representativos y existentes de la producción de biocombustibles en la Amazonía peruana: la producción de Caña de azúcar para etanol hidratado; y la producción de Palma aceitera y de Piñón blanco (Jatropha curcas) para biodiesel.

Peru possesses a large potential for biofuel production. The Peruvian government approved the Law for the Promotion of Biofuel Markets and subsequent regulations, with mandatory blending of biodiesel and ethanol. Given the proposed change in the Peruvian energy matrix, SNV together with the World Wildlife Fund (WWF) implemented a project to analyse the socioeconomic and environmental risks and benefits caused by the production of biofuels and energy crops in (agricultural areas within) the Peruvian Amazon.

In this socioeconomic study, cultivating Oil palm turned out to be the most profitable for small scale producers, according to the analysed scenarios in the local conditions of the Peruvian Amazon. However, its use for biodiesel production is questioned due to its traditional use for food products and possible negative impacts in food security and prices of derived food products. Furthermore, current prices make it more attractive to use Oil palm for alimentation purposes then for biodiesel. The profitability of Jatropha and sugar cane, compared with the analysed food crops in the area (corn and rice; the main traditional crops of potential Jatropha and sugar cane farmers, respectively), is still higher. These might be interesting alternative crops for the corresponding farmers, who at present face a difficult market situation in corn and rice, with reduced productivity and income levels.

Results were discussed with relevant stakeholders and presented at several events at local, national and international level. The results contribute to policy making and improved practices for a sustainable and inclusive development of the biofuels sector.

SNV en Perú y el Instituto de Investigaciones de la Amazonía Peruana (IIAP), han unido esfuerzos para elaborar la presente Línea de base sobre biocombustibles que dé soporte a las decisiones políticas y de inversión en esta línea productiva de la Amazonía peruana. La información de punto de partida está referida a los mercados de este sector emergente, al marco legal, a las iniciativas existentes en los departamentos de San Martín, Loreto y Ucayali, a los cultivos potenciales, al aspecto social en la cadena de valor así como a la sostenibilidad y viabilidad económica y ambiental de los biocombustibles en la Amazonía peruana, con la intención de apoyar a la empresa privada y al sector público en el desarrollo, la implementación y la difusión de modelos de negocios inclusivos y sostenibles para los biocombustibles. Se espera ayudar a despejar algunas incógnitas relacionadas a estos aspectos, apoyando al sector privado y a los gobiernos regionales, en el desarrollo, la implementación y la difusión de modelos de negocios inclusivos y sostenibles para los biocombustibles en la Amazonía peruana.

"The biofuels sector presents many opportunities for economic development and combating poverty, but also risks and controversies for the Amazon and its people. Experiences from Brazil, Malaysia and Indonesia have shown that large scale production can cause negative social and environmental impacts. It is acknowledges that increased production of energy crops would compete for agricultural land and with food crops. The central government is advised to develop effective mechanisms to prevent repetition of this scenario in Peru.

Therefore, the issue of biofuels in Peru and the Amazon in particular should be promoted through policy development to ensure sustainable development, creating mechanisms that allow associated farmers into biofuels supply chains, access to income to improve local economies. It should avoid impact on natural forests already affected by deforestation, prioritizing use of degraded and abandoned deforested areas, encourage research crops that are being introduced and develop a technology package that shows profitability of biofuels at the same time, while to avoid failures that discourage farmers.

SNV and the Research Institute of the Peruvian Amazon (IIAP) have joined forces to help clear some questions related to these aspects, supporting the private sector and regional governments in developing, implementing and dissemination of Inclusive Business models for sustainable biofuels in the Peruvian Amazon.

"The biofuels sector presents many opportunities for economic development and combating poverty, but also risks and controversies for the Amazon and its people. Experiences from Brazil, Malaysia and Indonesia have shown that large scale production can cause negative social and environmental impacts. It is acknowledges that increased production of energy crops would compete for agricultural land and with food crops. The central government is advised to develop effective mechanisms to prevent repetition of this scenario in Peru.

Therefore, the issue of biofuels in Peru and the Amazon in particular should be promoted through policy development to ensure sustainable development, creating mechanisms that allow
associated farmers into biofuels supply chains, access to income to improve local economies. It should avoid impact on natural forests already affected by deforestation, prioritizing use of degraded and abandoned deforested areas, encourage research crops that are being introduced and develop a technology package that shows profitability of biofuels at the same time, while to avoid failures that discourage farmers.

SNV and the Research Institute of the Peruvian Amazon (IIAP) have joined forces to help clear some questions related to these aspects, supporting the private sector and regional governments in developing, implementing and dissemination of Inclusive Business models for sustainable biofuels in the Peruvian Amazon.
"

el Consejo Empresarial Mundial para el Desarrollo Sostenible (WBCSD) y SNV, organización internacional holandesa, crearon la Alianza para los Negocios Inclusivos, con el fin de contribuir a reducir la pobreza mediante iniciativas comercialmente viables lideradas por el sector privado. Durante los últimos cuatro años la Alianza ha trabajado en diez países de América Latina, centrada en fomentar la implementación de este tipo de iniciativas inclusivas. Los Negocios Inclusivos son iniciativas empresariales económicamente rentables, ambiental y socialmente responsables, que bajo una lógica de mutuo beneficio contribuyen a mejorar la calidad de vida de las comunidades de bajos ingresos a través de su participación de bajos ingresos a través de su participación en la cadena de valor de un negocio:
-    Como proveedores de servicios y/o materia prima
-    Como distribuidores de bienes y/o servicios
-    Como consumidores al tener acceso a servicios básicos o productores de calidad que suplen sus necesidades esenciales a menor costo.

Esta publicación presenta once estudios, relacionados en el siguiente cuadro, sobre los casos con las mejores prácticas de los Negocios Inclusivos en América Latina. Ocho de estos casos han sido impulsados y facilitados por la Alianza SNV-WBCSD. Los otros tres casos llevados a cabo fuera de la Alianza sirven para subrayar el gran potencial e impacto que pueden tener los Negocios Inclusivos.

Este documento desarrolla un plan operativo y económico para desarrollar un Plan Nacional de Biodigestores en Perú. La base de la cual parte este documento es el “Estudio de factibilidad para un programa nacional de biogás doméstico en Perú” (incluido como anexo), de donde se extraen los principales datos, actores y sinergias.

Los objetivos y metas numéricas se han planteado a partir de experiencias realizadas en otros PNB implementados en el mundo y han sido adaptados a la realidad peruana.

La riqueza global prácticamente se ha duplicado desde 1990, pero casi la mitad de la población mundial subsiste con menos de dos dólares diaros. La pobreza sigue siendo un desafío importante para el desarrollo sostenible, la seguridad ambiental, la estabilidad global y un mercado verdaderamente global.
La clava para el alivio de la pobreza es el crecimiento económico inclusivo, que llegue a la mayoría de la población. Mejorando el rendimiento y la sostenibilidad de los empresarios locales y pequeñas y medianas empresas (PYMEs), que constituyen el eje de la actividad económica global, se puede contribuir al logro de este tipo de crecimiento.
Este documento informativo explica cómo los gobernos pueden ayudar a aliviar la pobreza concentrándose en las PYMEs y cómo las grandes compañías pueden ayudarse a sí mismas incluyendo a las PYMEs en sus cadenas de valor. También describe algunas de las ventajas comparativas de las PYMEs y los desafíos que éstas enfrentan en países en vías de desarrollo.

This report forms part of a meta-evaluation as carried out for 6 Jatropha projects as financed by HIVOS worldwide. SNV Peru was asked to accompany the evaluation of the CEDISA project in the San Martin region, Peru. This report presents the outcome of this evaluation.