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9
FAO/UNEP/UN-Energy Bioenergy Decision Support Tool -
MODULE 3: Implementation and Operation
rate, whereby a subsidized rate is offered to households for
a “subsistence” level of consumption, for example up to 50
kWh per month or a few kilograms of fuel;
Incentives should be suitably long term and predictable,
but with a sunset clause that phases out the incentives
and encourages developers to continue to advance the
technology until it is cost competitive with conventional
alternatives with no subsidies;
Incentives should not impose a fscal obligation that is likely
to compromise the fnancial stability of the responsible
agency or be so large as to be a serious drain on public
resources;
Incentives should be designed so as to minimize the potential
for corruption. Systems that involve complex, multi-tiered
monitoring and verifcation structure invite abuse. Such
systems are only as robust as those monitoring schemes,
and their outcomes can only be as successful as those
schemes are effective;
Incentives should encourage entrepreneurship; where
intended to develop a given technology, they should be
directed to the appropriate point in the commercialization
chain.
Incentives should be based on performance, rather than
capital investment alone.
Incentives should allow fexibility for the investor and/or
consumer to choose from among a range of technical and
institutional options and not pre-determine a specifc winning
option.
Financial incentives associated with climate mitigation forma a
rather special category; their applicability to small-scale bioenergy
schemes depends not only on the economic/fnancial charac-
teristics themselves but also on whether the relevant market for
projects or programmes includes some criteria for social benefts
<Mod3-Implementation: Carbon Finance>.
Devising an Implementation Strategy
Whereas a bioenergy strategy sets out the objectives and the
key bioenergy options, the implementation strategy is concerned
with how those goals will be achieved and
how
those options
will be pursued. The Bioenergy Task Force can either prepare
an implementation strategy or the various implementation
components might instead be defned, structured and passed
along to the appropriate national and regional bodies. The various
elements will involve different branches of government and the
various agencies responsible for policy and regulatory issues
in the relevant sectors, such as agriculture, fnance, energy,
environment and industrial development.
The choice of implementation options will naturally depend
strongly on policy objectives and the sectors and applications
that are emphasised. Some examples of elements that might
be included in the implementation strategy are listed in Table 5.
The table illustrates the multi-faceted and multi-sector nature of
bioenergy, especially if the strategy has signifcant components
for both agricultural and woody biomass. Some of the examples
listed will undoubtedly be covered by legislation or institutions
designed for water, land use, forests, agriculture and other
sectors; consequently, the implementation of a bioenergy strategy
requires signifcant coordination across government agencies
by the Bioenergy Task Force and may require adjustments to
legislation from other sectors. Specifc support mechanisms will
draw on various operational aspects of the strategy: technology,
market/fscal, regulatory, and organisational (Table 6). These
mechanisms are reviewed and discussed further below, in relation
to supporting policies, programmes and projects.
Table 5: Examples of implementation actions in relation to sectors and policy objectives
Sector/
objective
Climate
Ecology and
Biodiversity
Socio-economic
Food Security
Energy Security
Land Use • Incentives to
use degraded or
marginal land where
feasible
• Enforcement
measures for
exclusion zones of
high biodiversity
• Land reform
included in strategy
• Employment
creation strategy
• Food security
assessments when
land is set aside for
energy crops
• Integrated
food-energy
systems
• Integrated provision
of fbre and energy
Water
• Adaptation
schemes for
reduced water
availability
• Protection for
wetlands and for
watersheds
• Effuent capture
methods promoted
• Develop system for
water access for
small farmers
• Availability of water
for food crops
evaluated
• Advanced irrigation
methods applied as
appropriate
• Bioenergy use for
water pumping
• Encourage water-
effcient energy
crops
Soils and
nutrients
• Low tillage
practices
encouraged
• Support for conser-
vation agriculture
• Nutrient recovery
systems
• Technical Support
to small farmers for
appropriate fertiliser
application
• Capacity-
building for soil
nutrient impact
assessments
• Guidelines for
removal of
agricultural residues
Forests • Measures to
safeguard high
carbon areas
• Protection for
ecological sensitive
forests
• Organisation of
wood and charcoal
markets
• Include methods
for more effcient
woody biomass
use in bioenergy
programmes
• Energy access
evaluation
• Incentives for
Fuel-switching