Risk,Risk Management and Vulnerability to Poverty at

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Competence Platform on Energy Crops & Agroforestry Systems for Arid & Semi-arid Ecosystems (COMPETE) By Charles B.L. Jumbe, PhD (Econ) University of Malawi Centre for Agricultural Research & Development Bunda College P.O. Box 219, Lilongwee Malawi Email: [email protected]

Presented at the FANRPAN Stakeholders Regional Policy Dialogue- 4-7 September 2007, Holiday Inn, Lusaka Zambia

Outline

Motivation-Why energy crops?

The Pearls of biofuels The Perils of biofuels Objectives of COMPETE Project set-up Main activities Objectives of WP6-Policy Development What next beyond COMPETE?

Motivation-Why energy crops?

High dependence on fossil fuels for cooking & heating associated with deforestation & health concerns Between 2.3 & 3 bn people rely on traditional fuels, animal dung & crop residues for cooking and heating Every year, 1.5 m people die from inhaling smoke from burning these fuels & 50% are children Dependence on imported liquid fuels from fragile states politically –ensure energy security Increased environmental concerns (GHG emission) associated with burning of fossil fuels.

Increased interest in diversifying energy sources

The Pearls of biofuels

Biofuels offer a great opportunity for developing countries due to availability abundant land, cheap labour force, water, sunlight & favourable climate.

Possibilities for saving foreign exchange by substituting imported fossil fuels with biofuels Possibilities of improving rural livelihood through use of biofuels for domestic lighting, cooking and powering small engines (e.g. hammer mills) Possibilities of enhancing rural incomes through small scale production of feed-stock in marginal areas &biofuel production for domestic & export market

The Pearls of biofuels

Possibilities of providing electricity in remote locations (E xamples, Mali and Tanzania) Energy crop harvesting & processing can create more job opportunities for the poor Higher agricultural product demand can increase incomes of the rural farmers As technology advances, crop residues may be sold as feedstock for producing 2 nd generation biofuels

The Perils of biofuels

Food vs. fuel trade-off may lead to: diversion of scarce natural resources (land, water) from food to bioenergy production Potential to damage livelihood/increase rural poverty:  Food price increase shortage - Depending on feedstock used in biofuels production, rate of growth of biofuel production may surpass that of food production creating food supply  Land tenure Large-scale production of biofuels could push subsistence farmers & rural forest dwellers off land.

The Perils of biofuels Effect on environment

GHG emission year!

1 ha of land put into sugarcane for ethanol production saves 13 tons of CO2 every year. If, however, natural forests were allowed to regenerate on the same hectare of land, 20 tons of CO2 would be absorbed every Deforestation: The clearing of virgin land for large-scale biofuel production (often mono-culture systems) can lead to deforestation, soil erosion, nutrient loss thru leaching, etc Biodiversity: There are increased concern that biofuel expansion could lead to irreversible changes in the ecosystem leading to loss of biodiversity

The future of biofuels

Increased potential for the exploitation of non-food feedstock for biofuel production

Sweet sorghum Jatropha Carcus Sunflower

The future of biofuels

Advances in biotechnology, genetic improvement & hydrolysis of crop residues, straw, grass, etc. will be the main driver of growth in the production of 2 nd generation biofuels

Biotechnology Hydrolysis Biomass gasification

The future of biofuels

Biofuels (bio-electricity, biodiesel & ethanol) will become a globally traded commodity B iofuels development should be considered as an opportunity to be exploited.

Objectives of COMPETE

to establish a platform for policy dialogue & capacity building to identify pathways for the sustainable provision of bioenergy to improve the quality of life & create alternative means of income for rural dwellers in Africa to aid in the preservation of intact eco-systems to enhance the exchange of knowledge between EU & developing countries

Project Set-up

Overall Management - WIP Renewable Energies-Germany WP1 – Current Land Use Patterns and Impacts Kwa Zulu Natal, Republic of South Africa) (University of WP2 – Energy Crops and Agroforestry Systems – Improved Land Use (Copernicus Institute, Utrecht University, The Netherlands) WP3 – Sustainability Analysis of Alternative Land Use College, United Kingdom) (Imperial WP4 – South-South and North-South Cooperation – Africa, Latin America, Asia and Europe (Winrock International India) WP5 – Financing of Alternative Land Use and International Trade (Energy for Sustainable Development, United Kingdom) WP6– Policy Development (FARNPAN, Republic of South Africa) WP7 – Dissemination : Concept and Set-up of a Competence Platform (WIP- Renewable Energies- Germany)

Main activities

Evaluating current & future potential for sustainable provision of bioenergy in Africa Facilitating South-South technology & information exchange in R&D in bioenergy Developing innovative tools for the provision of financing mechanisms for national bioenergy programmes & projects Developing practical, targeted and efficient policy mechanisms for the development of bioenergy systems Establishing a Competence Platform for effective dissemination & knowledge exchange

Objectives of WP6-Policy Development

To coordinate policy research activities facilitate efficient implementation of energy crops & agroforestry systems avoid adverse environmental & social degradation from faulty policies To develop & evaluate policy initiatives together with relevant partners inform EU development policy about Africa’s policy objectives in the bioenergy sector To develop a roadmap for policy research in conjunction with FAO & other institutions

What next beyond COMPETE?

The era of biofuels is here to stay to ensure energy security & address environmental concerns associated with burning of fossil fuels, at the same time, enhancing rural livelihoods.

FANRPAN should be in the fore front provide guidance for development of legislation to monitor, safeguard & mitigate environmental perils of biofuels (e.g., land tenure policies) support rigorous research & analysis to provide evidence-based responses against biofuel development (impact on food prices, water & land) Development of a stakeholder directory for researchers & stakeholders involved in the biofuels sector

End of Presentation