Bio fuels for TransportationPotential and Implications for Sustainable

Agriculture and Energy in the 21st Century(BMVEL/GTZ/WWI)

Christine Clashausen

Workshop Presentation

„Potential of Biofuels in Tansania“Dar es Salaam, Tanzania

September 18 2005

Agr

arw

irtsc

haft,

Fis

cher

ei u

nd E

rnäh

rung

Agr

arw

irtsc

haft,

Fis

cher

ei u

nd E

rnäh

rung

Agriculture

Agriculture , , Fisheries

Fisheriesand Foodand Food

Contents

1. Background2. Objectives3. Project Partner 4. Target Group5. Project Activities6. Timeframe7. Facts of German Bio fuel market

1. Background of the Project

• Future shortage and increasing prices of fossil fuels

• Global climate change due to emission of GHGs

• Income opportunities for farmers in rural areas

• A lot of single studies, no consistent study of prospects and risks of Bio fuels in an international context

2. Objectives

• Comprehensive study of the issue:„Bio fuels for Transportation“ in a global environment (guided by principles of sustainable agriculture, energy, and transport)

• Positioning the study results in the international debate

3. Project PartnersGerman Ministry of Consumer protection, food and agriculture (BMVEL) – commissioner

Agency Renewable Resources (FNR) - Backstopping

German Technical Cooperation (GTZ)

World Watch Institute (WWI) in Washington/USA

4. Target Group

Decision and policy makers who deal with policies for rural development and energy, esp. alternative fuels

- in developing countries

- in Germany

- International

regional„Round Tables“

Study: Tanzania

Study: Brazil

Study: GER and Europe

Study: USA

Study: China

Study: India

regional Workshop

Global Study

Conference (Berlin)

Confernce (Washington)

Analysis Intern. Discussion Consequences

regional Workshop

5. Activities

regional Workshop

regional Workshop

6. TimeframeDuration: April 2005 to June 2006

Procedure:Regional Studies and Workshops

Brazil July – Oct. 2005China Aug. – Oct. 2005India June – Oct. 2005Tanzania Aug. – Oct. 2005

Study – Draft 30. January 2006Study – final 28. February 2006Workshop Berlin 16./17. May 2006Workshop Washington End of May

• Political Guidelines (EU)

Substitution of Fossil Fuels by Bio Fuels:

7. German Bio Fuels Market

2005 2%

2010 5,75%

Source: BMVEL

Schemes to Support Bio Fuels

• Tax exemptionSince 1.4.2004 pure and part of biofuel inblendings (in 1990s only pure biofuels)

• Quality Standard (Biodiesel)

• Subsidy 45 Euro/ha energy crops

Biodiesel Production in Germany

Source: German Agency Renewable Resources (www.fnr.de)

Biodiesel sales in Germany

Source: German Agency Renewable Resources (www.fnr.de)

Overview

Bio fuel Crop Area Production Production costs

Substititionof fuels

Diesel Rape seed

1 Mio. ha(max. 1,5 Mio. ha)

1,2 Mio t (2004)

0,90-1,02 US$

0,60 US$

2,7 %

Ethanol grainSugar beet

500 000 t (since 2005)

Source: German Agency Renewable Resources (www.fnr.de)

Main questions related to German supply

• Will the German automobile and fuel industries expand their demand more in diesel or bioethanol area?

• Should the German Government continue to subsidize production in country?

• Should Germany open up its markets for imports?• How can Tanzania benefit from an increased

demand for Bio fuels in Germany?

Thank you!