Carbon Accounting for Sustainable Biofuels

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The present study, prepared in support of Brazil’s G20 presidency, examines such complexities and discusses regulatory approaches for accounting biofuel carbon intensity across various regions.

The development of sustainable biofuels is at a pivotal juncture. They are recognised for their important role in decarbonising the transport sector – particularly for their potential to help reduce aviation and shipping emissions, and for their complementarity with EVs and energy efficiency measures in road transport. However, large-scale deployment of biofuels also raises concerns. The perceived climate benefit of biofuels depends largely on the carbon intensity of their supply. Thus, sound regulatory frameworks supported by transparent, science-based carbon intensity calculations will be required to attract the investments needed to scale up biofuel production. Using carbon accounting for policymaking purposes is further complicated by mixed reports on biofuel GHG emission results and the lack of consensus across methodologies.

The present study, prepared in support of Brazil’s G20 presidency, examines such complexities and discusses regulatory approaches for accounting biofuel carbon intensity across various regions. It highlights the main reasons for variability of lifecycle GHG emissions of biofuels and emphasises that impacts of land use change are a major source of disagreement across different policy frameworks. It concludes that policies need to adopt pragmatic approaches to foster verifiable and performance-based continuous improvement of sustainable biofuels.

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The Carbon accounting for sustainable biofuels report was prepared by the Renewable Energy Division of the Directorate of Energy Markets and Security of the International Energy Agency. The study was designed and directed by Paolo Frankl, Head of the Renewable Energy Division.

The lead authors were Ana Alcalde Báscones, who also coordinated the report production, and Ilkka Hannula. Other authors were Jeremy Moorhouse and Toril Bosoni (Head of the Oil Market Division). The report benefitted from major analytical contribution of external LCA-expert consultants Stefan Majer and Sophia Bothe from DBFZ, the German Institute for Biomass Research. We also thank Christiane Henning and Katja Oehmichen from DBFZ for their support.

The report fed extensively on discussions and feedback gathered at an IEA workshop on Sustainable Biofuels held in Paris, France (April 2024), and several events organised by the CEM Biofuture Platform Initiative at the 3rd meeting of the G20 Energy Transitions Working Group in Belo Horizonte, Brazil (May 2024).

Special thanks go to the members of the Biofuture Platform Initiative Jim Spaeth (DOE / Chair of Biofuture Platform Initiative), Keith Kline (Oak Ridge National Laboratory) and Gerard Ostheimer (Manager, CEM Biofuture Campaign).

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