Summary
The Renewable Energy Directive (2009/28/EC) (EU-RED) sets the European Union (EU) a target that 10 % of the energy used in the transport sector across the EU should be generated from renewable sources. To be eligible for government support or to count towards mandatory national renewable energy targets, biofuels used in the EU - whether produced locally or imported - have to comply with the so-called Sustainability Criteria, which are set out in articles 17, 18 and 19 of the EU-RED. So far, the main policy debate on the Sustainability Criteria has concerned greenhouse gas (GHG) emissions and indirect land use change. In the midst of
these debates, the architecture of EU policy and its implementation by member states have led to a de-facto delegation of responsibility for impacts on local livelihoods and on natural resources, such as water, to voluntary stakeholder-negotiated sustainability standards. While investors may be keen to demonstrate their commitment to sustainable water management in their chains of custody, at present, many retailers that import palm oil products
into Europe have postponed the adoption of specific standards. Contributors to the present study indicate that such retailers do not see these standards as sufficiently robust from a scientific perspective, or adequately supported by the relevant governing bodies and stakeholder forums, leaving their companies potentially vulnerable to criticism. With regard to public regulation, many producer countries in the South are well known to be struggling with
inadequately resourced, decentralized governmental agencies. Recognising the limited understanding of how EU imports of biofuel products affect water
resources and their management in producer countries, SEI and its partners decided to undertake a pilot study to: explore the impacts on water resources arising from biofuel feedstock production; map any ambiguities in how diverging claims are reconciled; and examine how the governance system can be improved. The study focused on two key research questions: 1. What water-related impacts and risks arise from biofuel feedstock operations? 2. How does the current governance system manage these impacts and risks? These questions were explored using a qualitative case study methodology based on the principles of participatory action research. This aimed to provide a range of stakeholders, with equally legitimate perspectives on water resource management in biofuel feedstock operations, with an opportunity to comment on what they believe to be the most pertinent risks and impacts, and to critique the performance of current governance mechanisms.