Sustainability Standards for

Biofuels
Joachim Monkelbaan, UNEP
Trade, Policy and Planning Unit
Economics and Trade Branch (ETB)
Green Economy Initiative
July 17, 2014

Overview

Role of Biofuel Standards

Potential trade barriers
created by VSS
Trade opportunities created
by VSS

Opportunities for Bioenergy

Trade
Biofuel Standards and the
European Union
Conclusion

Definition
Sustainability Criteria for Biofuels include:

Greenhouse
gas emission
savings

Land-use
requirements

Biofuels: Myth and Reality

The relation between technical regulations, standards

and labelling under the TBT Agreement.

TBT Agreement
Technical
regulation

Standards

Mandatory

Non-Mandatory
Labelling

Conformity Assessment
Procedures

From voluntary label to technical regulation

Box 2. How does a voluntary label become a technical regulation?1

A label whose nature is voluntary may be shifted to a mandatory label technical regulation
A voluntary label =
means of product
differentiation

A supply chain
requirement

A de facto market
standard

technical
regulation

reasons of public
policy

Role of Biofuel Standards

Source: Including Smallholders in Biofuel Certification: Recommendations to Voluntary Sustainability Standards; Aidenvironment; 2003.

Key Issues for Trade in Biofuels

Impact of national/regional protectionist policies
and tariff barriers.
Impact of technical standards/technical barriers
on trade.
Two types of technical regulations in particular
affect trade in biofuels:
i.

ii.

Maximum percentages of bioethanol or biodiesel which

can be mixed with petroleum fuels in the blends
commercially available
Regulations pertaining to the technical characteristics of
the biofuels themselves.

TRADE OPPORTUNITIES CREATED BY

VOLUNTARY SUSTAINABILITY STANDARDS

Opportunities for Bioenergy Trade

Current Status
EU energy ministers agreed to expand mandate for
food-based (first generation) biofuels to 7% for use
in transport - an increase from the 5%
recommended by the EC. (ICTSD, June 20, 2014)
Compliance of EU Renewable Energy Directive
2009/28/EC with WTO Rules?

Source: Sustainability Criteria in the EU Renewable Energy Directive: Consistent with WTO Rules?;
ICTSD Information note No. 2, 2010.

Analysis
From a legal perspective, some concerns are
the WTOs non-discrimination principle (Articles I and III GATT)
Justification under the exception clause provided for by Article
XX
Land-use criteria
GHG saving requirements
Likeness
From a political perspective
It obliges Member States to ensure a significant increase in
biofuel use for the purpose of protecting the environment,
without being able to ensure that the policy actually does help
the environment.

Thank you!
joachim.monkelbaan@unep.org