How Biofuel can Enhance Food Security for the Poor in the Greater Mekong Subregion(GMS)

Sununtar Setboonsarng, Southeast Asia Department Asian Development Bank

Asia Clean Energy Forum 2011 20-24 June, 2011, ADB, Philippines

Outline
Opportunities and Challenges of biofuel Agriculture, Biomass and Climate Change ADB program and invitation for stakeholder participation

Energy and Food Security

Energy is essential for economic growth, particularly inclusive growth Food is foundation of life Rural population of the GMS face both energy and food insecurity

Opportunities for Biofuel

Reduction of Green House Gas(GHG) in transport sector Lower import bill for fossil fuel New employment opportunity Higher price for agricultural products for farmers Trading potentials for inclusive supply chain

Challenges
Higher food price Disproportionate share of benefits Expansion of cropland onto sensitive areas Increased use of agrochemicals Soil degradation Overstress water supply Loss of biodiversity Introduction of GMO

Large-scale Plantation

Current Situation in GMS countries

Large-scale contract farming by foreign firms Short-term, high payoff investments by agro-processing plants Rapid environmental destruction and marginalization of small-scale farmers

Food Insecurity
40% of arable land has deteriorated Water shortage Climate change is affecting food security

Food or Fuel?

Price Trend of Biofuel and Alternative Energy Sources

US $/unit energy Biofuel

Alternative energy: solar, wind...

Price trend (time)

ADB Policy in Supporting Biofuel

the base crop used is not a food crop; (ii) the land cannot be used for food crops; (iii) the project does not result in deforestation, and (iv) the energy balance is positive
(i)

Win-Win Strategy?

Best Candidate: Jathropa

Intercropping with Jathropa will improve crop yields and socio-economic conditions of the rural poor with increased incomes

Jatropha in Small-scale Integrated System

The Jatropha System

Soap
Seeds Oil cake
CLEANER ENERGY

Biodiesel
Bio-jet engine

FOOD SECURITY

Jatropha plant Biochar

Electricity
Branches, twigs Biogas/syngas

Jathropa for Energy and Food Security

Jathropa oil for farm machinery, transportation, and electricity Jathropa oil for biodeisel for airline industry
Jathropa cake (seedcake left after oil extraction) for high grade nitrogen rich organic fertilizer Jathropa twigs for biochar and biogas Integrated systems are more resilience to climate change

Biochar for Carbon Sequestration

Biochar (charcoal from biomass) is produced by baking biomass at about 320-500C under low or no oxygen (pyrolysis) The combustion process releases gas or oil as clean renewable energy.

Biochar remains stable in soils for hundreds to thousands of years.

FAO (2009)

Effects of Biochar

The Jatropha System

Soap
Seeds Oil cake
CLEANER ENERGY

Biodiesel
Bio-jet engine

FOOD SECURITY

Jatropha plant Biochar

Electricity
Branches, twigs Biogas/syngas

 2011 : Regional Capacity Building Technical Assistance (R-CDTA) to pilot scale up investment programs ($4.6 mil-financed by NDF 2012: Pipeline project preparatory technical assistant($1.5 mil-finance by Japan Asia Clean Energy Fund) 2013: Pipeline Regional investment project ($80 mil-ADB and others)

Proposed ADB Program for Bioenergy in the GMS

Proposed R-CDTA on Efficient Utilization of Biomass for Climate-friendly Bioenergy and Food Security Project

Proposed R-CDTA
Size: $4.6 million

Expected to be implemented
between July 2011-Dec 2014 NGOs and Center of Excellences

are invited to participate

Three Pathways
Converting agricultural and forestry residues to energy and organic fertilizers, including biochar; Production of liquid biofuels from crops grown in small-scale integrated farming systems and provide market access to certified seeds; and
Use of improved cook stoves to reduce fuel demand and reduce black carbon emissions

Impact and Outcome

Impact: Improved use of biomass in the

GMS (focusing on Cambodia, Lao PDR, and Viet Nam)

Outcome: Efficiently operating pilot

projects in biomass use for scaling up in ensuing regional investment project

Output 1
Enhanced regional cooperation in bioenergy development to foster and safeguard food security

Output 2
Pilot-tested climate-friendly biomass investment projects for wider implementation

Output 3
Enhanced capacity for efficient use of biomass

Output 4
Development and dissemination of knowledge products

Call for Stakeholder Participation

Inception Workshop planned for Q3 2011 Stakeholders participation and decision making Studies to be prioritized Activities to be piloted

Thank you for your kind attention

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