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Recalculating GHG emissions saving of palm oil biodiesel

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  • Gernot Pehnelt
  • Christoph Vietze

Abstract

In 2010, the Renewable Energy Directive (RED) came into force in the EU and establishes a framework for achieving legally binding greenhouse gas (GHG) emission reductions. Only sustainable biofuels can be counted towards Member State targets. The aim of this paper is to calculate realistic and transparent scenario-based CO 2 -emission values for the GHG emissions savings of palm oil fuel compared with fossil fuel. Using the calculation scheme proposed by the RED, we derive a more realistic overall GHG emissions saving value for palm oil diesel by using current input and output data of biofuel production (e.g. in South-East Asia). We calculate different scenarios in which reliable data on the production conditions (and the regarding emission values during the production chain) of palm oil diesel are used. Our results indicate values for the GHG emissions savings potential of palm oil biodiesel not only above the 19 % default and 36 % typical value published in RED but also above the 35 % sustainable threshold. Our findings conclude the more accurate GHG emissions saving value for palm oil feedstock for electricity generation to be 52 %, and for transportation biodiesel between 38.5 and 41 %, depending on the fossil fuel comparator. Our results confirm the findings by other studies and challenge the official typical and default values published in RED. As a result, the reliability of the Directive to support the EU’s low-carbon ambitions is being undermined, exposing the EU and commission to charges of trade discrimination and limiting the ability of Member States to achieve their legally binding GHG emission reductions. Copyright The Author(s) 2013

Suggested Citation

  • Gernot Pehnelt & Christoph Vietze, 2013. "Recalculating GHG emissions saving of palm oil biodiesel," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(2), pages 429-479, April.
    • Handle: RePEc:spr:endesu:v:15:y:2013:i:2:p:429-479
    DOI: 10.1007/s10668-012-9387-z
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    References listed on IDEAS

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    1. Gernot Pehnelt & Christoph Vietze, 2009. "European Policies towards Palm Oil - Sorting Out some Facts," Jena Economics Research Papers 2009-086, Friedrich-Schiller-University Jena.
    2. Suppalakpanya, K. & Ratanawilai, S.B. & Tongurai, C., 2010. "Production of ethyl ester from esterified crude palm oil by microwave with dry washing by bleaching earth," Applied Energy, Elsevier, vol. 87(7), pages 2356-2359, July.
    3. O. Chavalparit & W.H. Rulkens & A.P.J. Mol & S. Khaodhair, 2006. "Options For Environmental Sustainability Of The Crude Palm Oil Industry In Thailand Through Enhancement Of Industrial Ecosystems," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 8(2), pages 271-287, May.
    4. AfDB AfDB, . "AfDB Group Annual Report 2005," Annual Report, African Development Bank, number 61 edited by Koua Louis Kouakou.
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    Cited by:

    1. Blanco Orozco, Napoleón Vicente & Zuniga Gonzalez, Carlos Alberto, 2013. "Environmental Bio Economic Impact in Nicaragua," MPRA Paper 49357, University Library of Munich, Germany, revised 12 Jun 2013.
    2. Sara Mingorría & Gonzalo Gamboa & Berta Martín-López & Esteve Corbera, 2014. "The oil palm boom: socio-economic implications for Q’eqchi’ households in the Polochic valley, Guatemala," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(4), pages 841-871, August.
    3. Kenneth R. Szulczyk & Muhammad A. Cheema & Ross Cullen & Atiqur Rahman Khan, 2020. "Bioelectricity in Malaysia: economic feasibility, environmental and deforestation implications," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), pages 294-321, April.
    4. Abdul-Manan, Amir F.N., 2017. "Lifecycle GHG emissions of palm biodiesel: Unintended market effects negate direct benefits of the Malaysian Economic Transformation Plan (ETP)," Energy Policy, Elsevier, vol. 104(C), pages 56-65.
    5. Xu, H. & Lee, U. & Wang, M., 2020. "Life-cycle energy use and greenhouse gas emissions of palm fatty acid distillate derived renewable diesel," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    6. Gernot Pehnelt & Christoph Vietze, 2013. "Quo Vadis European Biofuel Policy: The Case of Rapeseed Biodiesel," Jena Economics Research Papers 2013-015, Friedrich-Schiller-University Jena.
    7. Lakshmy Naidu & Ravichandran Moorthy, 2021. "A Review of Key Sustainability Issues in Malaysian Palm Oil Industry," Sustainability, MDPI, vol. 13(19), pages 1-13, September.

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    More about this item

    Keywords

    Biofuel; Palm oil; Biodiesel; Renewable energy directive; Typical values; Default values; GHG emissions; F14; F18; O13; Q01; Q15; Q27; Q56; Q57;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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