Tag Archives: mandates
Biofuels ‘Will Meet RFS Mandates Through 2016’
September 3, 2013 There will be sufficient supply of advanced biofuels to meet the US Renewable Fuel Standard through 2016, according to Environmental Entrepreneurs’ (E2) annual assessment of the advanced biofuel industry . The report comes amidst renewed scrutiny of the RFS from Congress this summer, as the oil industry seeks to roll back the renewable fuel requirements . The RFS requires that the majority of future growth in biofuels production come from non-food cellulosic biofuels, and the slower than expected commercialization of the cellulosic industry has caused some to lose patience with the program, E2 says. The report suggests that the policy is beginning to deliver on its stated purpose of developing a domestically produced, clean-burning alternative to oil. The assessment says advanced biofuels capacity for 2013 is 1 billion gallons gasoline equivalent while capacity for 2015 is between 1.4 and 1.6 billion gallons gasoline equivalent. Additionally, Some 160 commercial scale facilities planned, under construction, or complete from 159 companies and private investment in the advanced biofuel industry totals over $4.85 billion since 2007. Federal loan guarantees exceed $1.1 billion since 2008, the report says. Nine of the current biorefinery projects have received these loan guarantees. To qualify as advanced for the E2 report, a biofuel must deliver at least a 50 percent reduction in carbon intensity compared to petroleum using calculations developed by the California Air Resources Board. Biodiesel remains the dominant advanced biofuel today and is expected to remain the forerunner through 2016. So-called drop-in fuels show significant progress and the report authors expect them to contribute more substantially to overall advanced biofuel capacity over time. The EPA, which administers the RFS, is expected to announce biofuel volume requirements for 2014 sometime over the next month. And while the report shows that the biofuels industry can meet near-term production targets, even under the best circumstances, advanced biofuels can account for only 0.7 percent of US fuel demand — suggesting that while biofuels can be part of efforts to cut oil use, they must be paired with other solutions such as expanded electric vehicle use and greater fuel efficiency, E2 says. California is ahead of the biodiesel curve , according to a study published last month by E2 and Environmental Defense Fund. Growing production in the state shows California companies have started capitalizing on this low-carbon fuel. Companies profiled in the report credit California’s Low Carbon Fuel Standard (LCFS), which calls for lower emissions from transportation fuels, with driving demand for and growth of biofuels in the state. Continue reading
Bloomberg-EDF analysis: Mandates Plus Markets Could Make Airlines’ Emissions Goals Readily Affordable
By ANNIE PETSONK | BIO | Published: AUGUST 1, 2013 The aviation industry can affordably meet and beat its goal of halting carbon emissions growth from 2020 if it uses high-quality, low-cost carbon offsets, according to a new analysis from Environmental Defense Fund (EDF) and Bloomberg New Energy Finance (BNEF) . Airlines’ goal of “carbon-neutral growth from 2020” could be so readily affordable that governments justifiably could hold airlines to a much tighter emissions target. Image source Our analysis comes on the heels of a consolidated industry call for the governments of the International Civil Aviation Organization (ICAO) to commit, at their next triennial Septe mber meeting, to adopt a mandatory global program to limit aviation’s carbon pollution by 2016 at the latest. While forecasts are inherently uncertain, best estimates indicate that while new technologies, operations and infrastructure can help industry dampen emissions growth, substantial increases in aviation emissions are likely after 2020. Consequently, to meet their proposed mandatory goal of “carbon-neutral growth from 2020,” it is very likely that airlines will need some kind of carbon offsetting mechanism . An offset mechanism that limits credit supply to high-quality carbon units currently available and expected to come on-line in the future, could let airlines meet their emissions target at very modest cost. If governments adopt tough criteria ensuring that offsets represent real reductions in net carbon emissions, and if industry moves swiftly to capture those carbon units, the costs to airlines could be quite low – e.g., less than 0.5% of projected total international airline revenue in 2015 , and less than a third of the fees airlines collected last year for checked bags, legroom and snacks. In the current round of talks, the aviation industry is asking governments to mandate caps on airlines’ emissions at 2020 levels. Our analysis finds that a well-designed, high-integrity carbon offset program would make carbon-neutral growth from 2020 so affordable, that governments justifiably could hold airlines to a much tighter emissions target. That could mean putting back on the table a target the industry had proposed several years ago , namely cutting emissions 50% by 2050. As my report co-author, Bloomberg New Energy Finance chief economist Guy Turner, said : These findings show that the international aviation sector can control its CO2 emissions easily and cheaply by using market based mechanisms. The relatively small cost and ability to pass any costs through into ticket prices, should encourage the international aviation sector to accelerate and deepen its emission reduction pledges. More ambitious emission reductions now look much more doable, than mere stabilization from 2020. Our analysis offers context to the costs of such a global market-based mechanism using offsets with strong environmental integrity, which the aviation industry called on ICAO last month to adopt to keep the industry’s net emissions stable from 2020 on. Such an offset program would allow the airlines to meet their emissions targets by both making emissions cuts within the aviation sector, and drawing on offsets that represent real emission cuts in other sectors. Blog-exclusive addendum: effect on ticket prices A well-designed global offset program, using high-quality offsets that represent real reductions in emissions, could add only a few dollars to a typical international fare: From Paris (CDG) to Beijing (PEK): $1.90 – $3.00 From Paris (CDG) to Delhi (DEL): $1.50-$2.30 From Paris (CDG) to Cape Town (CPT): $2.40-$3.70 From Paris (CDG) to Buenos Aires (EZE): $2.70-$4.30 From New York (JFK) to Buenos Aires (EZE): $2.10-$3.20 Read more in our press release and the full BNEF-EDF analysis, Carbon-Neutral Growth for Aviation: At What Price? – See more at: http://blogs.edf.org…h.LWzQqdaa.dpuf Continue reading
