Ian TaylorA new comprehensive report has been released that examines the crucial role of carbon accounting in the biofuel industry. The document from the IEA delves into the complexities and regulatory approaches necessary for advancing sustainable biofuels.
With the development of sustainable biofuels at a critical juncture their potential to significantly reduce greenhouse gas (GHG) emissions in the transport sector is gaining increasing recognition. Biofuels hold promise for decarbonising aviation and shipping, complementing electric vehicles (EVs), and enhancing energy efficiency measures in road transport. However, the report acknowledges that large-scale deployment of biofuels is fraught with challenges, especially concerning the carbon intensity of their supply chains. The perceived climate benefits of biofuels hinge on accurate and transparent carbon accounting, which is essential to attract the investments required to scale up production.
Carbon accounting, the act of evaluating GHG emissions based on lifecycle assessment principles, covers the entire biofuel supply chain and final use. It measures GHG performance as carbon intensity in grammes of CO₂-equivalent per megajoule of biofuel produced (gCO₂-eq/MJ), encompassing all gasses with global warming potential. The report states that in the next five years, nearly 40% of road transport fuel demand will be driven by policies aimed at incentivising lifecycle carbon reductions, signalling a shift from traditional biofuel blending mandates.
The study, produced to support Brazil’s G20 presidency, states that while biofuels can play a pivotal role in decarbonising transport, their sustainability is often questionable due to issues such as land use changes, net GHG emission balances, and potential adverse effects on biodiversity and food prices. These concerns pose significant barriers to investment and trade, undermining the credibility of biofuels as a sustainable option.
For sustainable biofuels to be effectively deployed, transparent and internationally agreed-upon GHG accounting practices are crucial. These biofuels not only aid in reducing transport emissions but also contribute to energy security and job creation, particularly in rural areas. Yet, the large-scale deployment of crop-based biofuels raises concerns related to land use changes and their unintended impacts on biodiversity or food prices.
The study identifies that GHG accounting is generally consistent across most biofuel policy frameworks, except regarding land use change. Core lifecycle assessment (LCA) values, which exclude land use changes, can vary significantly among similar biofuel pathways due to factors like regional differences, methodological choices, and data quality. Regional disparities often reflect local practices and conditions, such as electricity emission intensity or fertiliser use. Methodological choices, like co-product handling methods or system boundary setting, and data quality issues also contribute to these variabilities.
The report asserts that biofuel carbon intensity can be improved through supportive policy frameworks and appropriate verification procedures. Utilising renewable energy for process heat and electricity and adopting new technologies like carbon capture in biofuel production, can also contribute to lower emissions, though these measures may increase costs.
To foster continuous improvement in sustainable biofuels, policies should reward better GHG performance and incorporate carbon accounting within a wider portfolio of sustainability criteria, as well as considering socioeconomic factors.
The research also shows that strengthening collaboration among international organizations like the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO) and fostering integration of into economy policies, will be essential in promoting consistent carbon accounting practices and driving the sustainable deployment of biofuels globally.
Click here access the IEA report, Carbon Accounting for Sustainable Biofuels.
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Ariane Morrissey
